Zerodha - Number One Discount Broker in India

[traderniftybull]

Yes,any charges/penalties which exchanges/Depositories impose on a broker because of misconduct or breaking rules by the clients the broker is entitled to pass on the same to the concerned client. But it has to be proved that the client was responsible for such penalty.

Examples : Suppose you have Rs 50,000 in your account and you bought shares worth 60,000 ( most brokers except online brokers will allow this ) and you are supposed to pay before pay-in date and time ( meaning your money should reach the brokers bank account by that time...merely giving cheque wont help) so the broker is entitles to charge interest on this shortfall and also the demat charges which he incurs because he has to hold this delivery in his account and transfer to you only on receipt of full payment.

In case the client sells shares and he delivers less or no shares...then the shortfall is auctioned.The entire auction bill the broker can pass on to the client and recover from him with penalty if exchange has charged some penalty.

In case of T to T shares if someone sells the shares and covers them on the same day, still being T to T they are required to give delivery of shares sold and pay for the shares bought..no netting is allowed....such shortages have huge penalty and broker recovers the same from the client. Hence most of the brokers either wont trade in T to T shares or will flash a message that share is in T to T which will alert the client before he places the order.

But the fines and penalties exchange imposes on a broker for shortfall in margins,bank guarantee,failure to submit information in time etc broker cannot pass to the client.

NSE fines are substantial and a normal broker ends up paying few lakhs per year as fines/penalties to NSE.

Smart_trade

Thanks Da for the reply

What I understand, that the paragraphs above the lines
"But the fines and penalties exchange imposes on a broker for shortfall in margins,bank guarantee,failure to submit information in time etc broker cannot pass to the client."
are in no way concerned with F&O trading
and
a broker cannot pass on fine/penalties imposed by exchange in case of shortfall in margins etc (please correct me if I am wrong)

That means that Z has cheated me of some 6K of amount in the name of exchange penalty, some 3/4 years back (that too when there was no shortfall in margin, from my side) and when I protested, they sent me a jalebi type reply, placing fault on me.

 

[Smart_trade]

Thanks Da for the reply

What I understand, that the paragraphs above the lines
"But the fines and penalties exchange imposes on a broker for shortfall in margins,bank guarantee,failure to submit information in time etc broker cannot pass to the client."
are in no way concerned with F&O trading
and
a broker cannot pass on fine/penalties imposed by exchange in case of shortfall in margins etc (please correct me if I am wrong)

That means that Z has cheated me of some 6K of amount in the name of exchange penalty, some 3/4 years back (that too when there was no shortfall in margin, from my side) and when I protested, they sent me a jalebi type reply, placing fault on me.

Difficult to say about a specific case without knowing the facts and reasons for the penalty. BUt if there is no fault of client then a broker cannot charge penalty to him.

Smart_trade

 

[traderniftybull]

Difficult to say about a specific case without knowing the facts and reasons for the penalty. BUt if there is no fault of client then a broker cannot charge penalty to him.

Smart_trade

Thanks Da,
At present, I have misplaced the trail of the details (as the case is 3/4 years old), will surely post details (for information), if I be able to locate that file/folder.

But I believe in
"jo hota hai achchhe ke liye hota hai"

And after that incident, I replaced him with another discount (monthly charges based broker) and saved quite a good amount in brokerage itself, in this period.

 

[ankur07090]

Zerodha opentade thread deleted.........
any reason ?

 

[copypasteaee]

Zerodha is sponsor here

 

[Raj232]

Zerodha opentade thread deleted.........
any reason ?

Not sure about the thread, but in the last couple of months I have seen several "Stars" gone bankrupt. Not worthwhile following any of the so-called stars
..and if you watch closely, the losses are often bigger than the profits ..

 

[headstrong007]

Zerodha opentade thread deleted.........
any reason ?

Perhaps..Z.. can't 'Handle The Truth' anymore..

But.. An open forums is “double-edged sword”.. Like leverage...

 

[vijkris]

Zerodha opentade thread deleted.........
any reason ?

Oh, I was wondering the same... yday I replied in that thread. Most probably someone might have reported the posts as it was against Z.

 

[copypasteaee]

I didn't reply in that thread but the question was not reasonable. Say i have a strategy with 100% drawdown and 1000% return. Means 1 lakh invested shall become 10 lakh at the end of year. But i run risk of losing my 1lakh as well. So to avoid bursting my trading account i kept additional 1 lakh in my bank account. I will keep my trading account steady with 1 lakh. If profit today i will withdraw and if loss i will put more money.

That guy in open trade must be doing similar thing. Keeping 15k steady in his trading account with zerodha, rest of money is waiting in bank account to be deployed.

I hope this shall help

 

[Subhadip]

How much money required for selling of one lot NIFTY future

Also selling of one lot 9400 CE may

Both overnight holding