Zerodha - Number One Discount Broker in India

[Smart_trade]

We haven't yet sent out any emails to clients, but yes 60 day challenge in the current format will end on 31st March. We will continue to run it as a challenge, but without any brokerage refunds, even if we refund, it will be limited to an X amount. We have had too many people trying to game the system, and putting unnecessary overhead on our operations.

60 days challenge was a great initiative. I see many winning 60 days challenge in our forum and becoming consistantly profitable traders and that is a happy news.

The idea of 60 days challenge is that the traders become profitable by cutting losses and running profits.Brokerage refund for new traders it acts as a incentive. But the idea should not be misused by just being profitable by few hundred rupees and stopping trades in that account. These though are technically nothing wrong but they defeat the idea of 60 days challenge.

Zerodha may consider few rules to make sure that the challenge is not misused, keep a cap of Rs 10,000 per challenge for brokerage refund ( so that traders in learning stage will benefit. For traders winning more than 5 challenges, a refund of token Rs 5000 ( as a prize or incentive ) or brokerage which is lower along with certification can also be considered.

60 days challenge has helped many new traders to achieve consistant profitability and the initiative should continue with the loopholes plugged.

Smart_trade

 

[timepass]

We haven't yet sent out any emails to clients, but yes 60 day challenge in the current format will end on 31st March. We will continue to run it as a challenge, but without any brokerage refunds, even if we refund, it will be limited to an X amount. We have had too many people trying to game the system, and putting unnecessary overhead on our operations.

How do they game the system ?? Anyway, there is always a "chor-police" game on in whereever there is a profit to be made, should not deter the objective(s) of the schemes.

I guess before making any changes you should revisit the purpose(s) of the 60 day challenge when it was begun.

Maybe this forum can contribute towards way of plugging the loopholes, if any, so that the many don't have to suffer for the misdeeds of a few.

I agree with ST's above post. I am one of the beneficiaries (in ways apart from the brokerage refund).

One of the things you could do is refund brokerage if the profits are greater than the previous times, or maybe increase the refund limit incrementally i.e. a trader maxes out his limit 2-3 times, maybe let a trader set his/her own targets (in % of capital etc.). Maybe change the game, i.e. think up a new incentive scheme etc..etc..

60 days challenge was a great initiative. I see many winning 60 days challenge in our forum and becoming consistantly profitable traders and that is a happy news.

The idea of 60 days challenge is that the traders become profitable by cutting losses and running profits.Brokerage refund for new traders it acts as a incentive. But the idea should not be misused by just being profitable by few hundred rupees and stopping trades in that account. These though are technically nothing wrong but they defeat the idea of 60 days challenge.

Zerodha may consider few rules to make sure that the challenge is not misused, keep a cap of Rs 10,000 per challenge for brokerage refund ( so that traders in learning stage will benefit. For traders winning more than 5 challenges, a refund of token Rs 5000 ( as a prize or incentive ) or brokerage which is lower along with certification can also be considered.

60 days challenge has helped many new traders to achieve consistant profitability and the initiative should continue with the loopholes plugged.

Smart_trade

 

[Smart_trade]

The brokerage part is very less compared to other charges like STT , TOT, stamp etc, which anyway does not get refunded, so no one can "game" the system there I guess.

It's a decision of Zerodha to continue or not to continue with refund, cap on refund or not much useful certificate, or stop the challenge completely.

But it is completely illogical to say that the refund or cap on refund or format being changed because some clients of Zerodha are trying to outsmart the system.

Few people misusing the challenge may be putting some burden on Zerodha backoffice but I am sure 60 days challenge increased number of clients for Zerodha so it is advantageous to both.

Finally it is Zerodha's call.

Smart_trade

 

[cinderblock]

We haven't yet sent out any emails to clients, but yes 60 day challenge in the current format will end on 31st March. We will continue to run it as a challenge, but without any brokerage refunds, even if we refund, it will be limited to an X amount. We have had too many people trying to game the system, and putting unnecessary overhead on our operations.

If the objective is to win certificates and use it to promote oneself then the 60 day challenge is very lucrative. Given 3 years (36 months) - it's a no-brainer to win 6 certificates on an average. I hope you know how

There are always many ways to game any system. You can't prevent it. The point is - Do your objectives with the 60 day challenge now offer a diminishing rate of return? I suppose we all know the answer to that question.

 

[Striker]

The brokerage part is very less compared to other charges like STT , TOT, stamp etc, which anyway does not get refunded, so no one can "game" the system there I guess.

It's a decision of Zerodha to continue or not to continue with refund, cap on refund or not much useful certificate, or stop the challenge completely.

But it is completely illogical to say that the refund or cap on refund or format being changed because some clients of Zerodha are trying to outsmart the system.

This is a valid point.

 

[timepass]

Few people misusing the challenge may be putting some burden on Zerodha backoffice but I am sure 60 days challenge increased number of clients for Zerodha so it is advantageous to both.

Finally it is Zerodha's call.

Smart_trade

If the objective is to win certificates and use it to promote oneself then the 60 day challenge is very lucrative. Given 3 years (36 months) - it's a no-brainer to win 6 certificates on an average. I hope you know how

There are always many ways to game any system. You can't prevent it. The point is - Do your objectives with the 60 day challenge now offer a diminishing rate of return? I suppose we all know the answer to that question.

Maybe discontinuing the challenge will offer a diminishing rate of return. Almost every customer of the discount broker has an account with more than one discount broker. Almost all the discount brokers offer the same / similar trading platform (NOW or NEST as provided by the Exchange), similarities in the turnover charges etc. Those who stick to one broker do so because of some perceived advantages over the others.

 

[vijkris]

How do they game the system ??

well I have seen sub-brokers(not zerodha) , in a quest to generate brokerage use frequent entry and exiting at minor profit/breakeven.
thus at end of month, say for 50k account, generate 2k profit, but they earn brokerage of 10 lakhs or greater,

maybe due to these type of strategies/people zerodha capped refund to 30k previously.

 

[timepass]

well I have seen sub-brokers(not zerodha) , in a quest to generate brokerage use frequent entry and exiting at minor profit/breakeven.
thus at end of month, say for 50k account, generate 2k profit, but they earn brokerage of 10 lakhs or greater,

maybe due to these type of strategies/people zerodha capped refund to 30k previously.

Doesn't the challenge rules allow only retail traders and prohibit brokers/prop traders etc ??

 

[vijkris]

Doesn't the challenge rules allow only retail traders and prohibit brokers/prop traders etc ??

ya.. I just gave example that there are strategies which generates high brokerage and breakeven profits.
why cant retail traders use it?
I m sure some of the retail traders have done it and would have got lakhs of refund. (for nifty breakeven is around 3 pts or less).

 

[cinderblock]

ya.. I just gave example that there are strategies which generates high brokerage and breakeven profits.
why cant retail traders use it?
I m sure some of the retail traders have done it and would have got lakhs of refund. (for nifty breakeven is around 3 pts or less).

How does that help the retail trader? He first paid the brokerage and then got a refund. Lakh or crore does not matter. He received only as much as he paid. Net - he received only his near breakeven profit.