Zerodha has silently ended it's 60-days challenge

[timepass]

REMOVING THE CHALLENGE IS BAD FOR ZERODHA FINANCIALLY, NOT GOOD.. IN MY HONEST OPIONION

They remove the challenge, they remove the referral payout, so maybe they have sufficient savings to offset any potential losses. Further, the traders may take some time to move on to the other brokers.

 

[pannet1]

They remove the challenge, they remove the referral payout, so maybe they have sufficient savings to offset any potential losses. Further, the traders may take some time to move on to the other brokers.

ah, referral payout, i missed that. very bad z

my 60 days challenge page, does not show anything odd. is there anything i missed.

i think i should apply to upstox now, so there is no day that i cannot trade.

 

[headstrong007]

I quit active trading from Z.. long ago when they limit 60-day brokerage refund to Rs 30,000.

I just saw Nifty, Bank Nifty margin NRML is substantially increased to 10% from 8%. So, that MIS, BO, CO all margin are increased as all based on NRML.
Currently, Bank Nifty NRML margin is over 1 Lakh(10%) whereas most of the discount brokers even Finvasia has around 80,000 (8%).

So, all 3 steps, done together.
1. No refund from 60-day challenge.
2. No referral income. and most importantly,
3. Reduced leverage significantly. They reduced only intraday leverage but also positional leverage! Most of the traders would not like new 10% margin for Index Future. Even BO margin for Bank Nifty increased to 20,000! New MIS margin for BNF 41,000+

So, now currently Zerodha's margin requirement for NRML and MIS is higher than zero brokerage broker Finvasia.
Even zero brokerage Finvasia NRML is 8% and MIS is 2X so for BNF its about 80,000 and 40,000.
All most all other discount brokers charging only 8% for NRML and MIS is 2.5X-3X there.

It is clear that Zerodha wants to cut the load desperately.

***************
Ending 60-day challenge and referral income is the separate thing but cutting leverage is not a good idea for any broker in the long run. IMO.
8 to 10% increase means margin requirement is increased 20% -> very big for retail traders. This process was also silent. 20% less capital means 20% less income for pro high volume traders, so they will shift surely. But, I m sure very few high volume traders left in such vulnerable & unstable system now, so they take such steps confidently.

 

[timepass]

About that reduced leverage thing, I think there is a duality, or at least confusion of some sort.

Apparently ztrader does not know what is posted on the website. Maybe the active traders should check the RMS surveillance report after placing the order, check the margin used, and compare against what the website shows.

 

[Loss_Lover]

We saw whenever there is extra volatility in the market Zerodha System starts giving the problem.
I find a new volatility indicator after India Vix, it's Zerodha Terminal. Whenever it creates a problem in the morning, I expect a big move is coming. The success ratio is very good.

@headstrong007
I can't stop myself from laughing after reading this one!
Has anyone kept a track of Zerodha system issue dates in a calendar, we can definitely get your strategy backtested then.

 

[soft_trader]

@headstrong007
I can't stop myself from laughing after reading this one!
Has anyone kept a track of Zerodha system issue dates in a calendar, we can definitely get your strategy backtested then.

go through "zerodha thread part 3" and note down the date of terminal related complaints. have it as your homework

 

[headstrong007]

Two one way good volatile move on terminal Z terminal hanging day. Easy to trade. Indicator succeeds again. See market bounced back instantly from prev high, no choppy move.

 

[jagankris]

Two one way good volatile move on terminal Z terminal hanging day. Easy to trade. Indicator succeeds again. See market bounced back instantly from prev high, no choppy move.

Finally a Holy Grail

 

[rahulsharma17]

I think the reason is too much load on their infrastructure(manly terminal) by increasing number of clients day by day. It is going out of their hand now. So, they want to reduce Active Traders desperately.

60 Day Challenge End and they also stopped referral program which is only good to new attract active F&O clients bcoz a delivery based client doesn't generate any referral income.
So it is clear they want to cut new active clients also, who log in to their system for longer times. They are quite happy with delivery based clients who don't monitor stocks all the time hence giving less workload to their inferior infrastructure.

We saw whenever there is extra volatility in the market Zerodha System starts giving the problem.
I find a new volatility indicator after India Vix, it's Zerodha Terminal. Whenever it creates a problem in the morning, I expect a big move is coming. The success ratio is very good.

Haha this could be an effective volatility indicator. By the way this was the reason I closed my account with them and switched to Fyers.
Since then I can really bank upon their trading platforms and deposit some profits in my bank.
With regards to 60 Day challenge it was sure that on some day or the other it was going to fail with their crappy infrastructure. Zerodha is a company which is evolved only in terms of customer base not the infrastructure.
On the other hand, Fyers runs a 30 Day challenge with more attractive offers.

 

[timepass]

Maybe they have stopped the challenge to come up with some new scheme in the coming months. They come up with something on 15th August almost every year.