They screw their customers atleast once every month with technical glitches resulting in huge loss for the day traders,who are their major customers..and they are never sorry about it.
Hello, World – Zerodha, India's largest stock broker
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Re: Hello, World – Zerodha, India's largest stock broker
#12[deleted]
Re: Hello, World – Zerodha, India's largest stock broker
#13A lot of good tips in there. Thank you for sharing. One thing grabbed my attention...
> Hybrid infra. Physical racks where numerous exchange leased lines terminate + AWS. Sometimes, these leased lines go down when the civic body in Mumbai digs up roads.
Isn't it better to fully rely on Cloud and Infra providers in order to completely avoid such instances?
Re: Hello, World – Zerodha, India's largest stock broker
#14Kailash Nadh, zerodha's co-founder, is an active investor as well through the rainmatter startup incubator [0]. There's been quite a boom in the fintech space in India for quite some time now, but zerodha is one of the first generation companies that survived through thick and thin. Indian fintech and edtech companies invite a tonne of interest from YC, in particular, and so, dare I say, the going has got a bit easier in the post-Jio, post-UPI world.
That said, I don't get the attractiveness of active-passive stock brokering. Indexed funds (mutual funds) remain a better investment vehicle for the casual passive investor [1] (though some doubt that [2]), as this famous bet [3] and this famous pre-IPO advice to googlers remind us [4].
Don't have a horse in the race, but in India, apart from coin.zerodha; groww.in and smallcase.com are two of the many new-age mutual / indexed fund companies.
[1] https://news.ycombinator.com/item?id=12768319
[2] https://news.ycombinator.com/item?id=20877700
[4] https://web.archive.org/web/20070417031443/http://www.sanfra...
Re: Hello, World – Zerodha, India's largest stock broker
#15They screw their customers atleast once every month with technical glitches resulting in huge loss for the day traders,who are their major customers..and they are never sorry about it.
Hey, sorry about that. And we're always sorry about technical issues when they happen, and 9/10 times, they stem from systems outside of our control.
The underlying infrastructure in the Indian capital markets is very constrained and was not really built for the kind of scale we're operating at in 2020. The next biggest broker processes only a fraction of our daily volumes. So it really is a matter of scale, industry wide.
To give you an example, the leased lines NSE (National Stock Exchange) offers to brokers to send orders take up to four months to commission, and each line has a max capacity of 1000 messages / second. We've been processing close to 8 million trades a day. So you can imagine how painful things can be.
We've been working hard over the years to reduce legacy market infrastructure dependencies and have been making significant progress.
Re: Hello, World – Zerodha, India's largest stock broker
#16I hope all the positive replies here are from those who actually used Zerodha themselves over a period of time. When I tried it last year, the website was buggy and even saw HTML errors in response. I moved away to a traditional broker as a result of that.
As I mentioned in another response, sorry about that. We've had three incidents (intermittent degradation of service over the last two months that lasted 7 and 30 mins respectively). There were two similar incidents last year.
Not sure what you mean by "HTML errors", but apart from these unfortunate incidents stemming from legacy infra dependencies, there are no issues, and we cleared a billion trades last year.
Not sure if you noticed, the volatility over the last two months caused all top five traditional mega-brokers to go down for hours multiple times over several days. Of course, none of this should matter to end users, but I just wanted to say that a lot of these issues in the industry are because of the ageing underlying infra. Thanks.
Re: Hello, World – Zerodha, India's largest stock broker
#17Was able to a full remote account opening on the platform without a single phone call or courier of any documents Customer onboarding + KYC is a big deal in India and this just surprised me as to how seamless it has become. My earlier "demat" account had simply so many hoops to jump through. Neatly done I loved this ```Neither large teams for the sake of “growth”, nor 10x ninja developers, are meaningful. What matter…
Thanks :) The online on-boarding is the result of a multi-year effort of convincing the regulators of the advances in tech.
Re: Hello, World – Zerodha, India's largest stock broker
#18A lot of good tips in there. Thank you for sharing. One thing grabbed my attention... > Hybrid infra. Physical racks where numerous exchange leased lines terminate + AWS. Sometimes, these leased lines go down when the civic body in Mumbai digs up roads. Isn't it better to fully rely on Cloud and Infra providers in order to completely avoid such instances?
My guess is that the leased lines are a requirement to connect to their partners.
Re: Hello, World – Zerodha, India's largest stock broker
#19There is some reports that they sell your contact information to shady investment marketing companies. Many people have observed a sudden influx of calls from small, unheard of investment companies calling them up with investment offers, after they have signed up with Zerodha.
Also there have been much publcised issues with futures trading on their platform, with a court ordering them to refund a large sum to an invester.
There also have been issues with outages:
"Unfortunately, the steep increase in client base and consequent surge in orders has led to several bottlenecks because Zerodha’s infrastructure has not kept pace.
The system conks off often and it is common to find traders expressing their angst against Zerodha, especially on days of high volatility.
Yesterday was a textbook example of this.
The news about hostilities between India and Pakistan led to a sudden surge in volatility.
Traders scrambled to take new positions or cover their existing ones.
However, Kite, Zerodha’s flagship trading system, was down and out.
It stopped taking orders, which is an unthinkable eventuality given the mayhem that was being witnessed in the markets at that time."
From https://rakesh-jhunjhunwala.in/zerodha-held-liable-to-compen...
Re: Hello, World – Zerodha, India's largest stock broker
#20There is some reports that they sell your contact information to shady investment marketing companies. Many people have observed a sudden influx of calls from small, unheard of investment companies calling them up with investment offers, after they have signed up with Zerodha. Also there have been much publcised issues with futures trading on their platform, with a court ordering them to refund a large sum to an inve…
I've talked about the technical issues in a couple other responses on this post.
About spam, we've been working with the capital markets regulators, cyber crime units (Police), and TRAI (telecom regulator). It is a nasty issue that plagues all capital markets institutions in India. I'd gone into some detail on the data leaks on this Reddit AMA last year: https://www.reddit.com/r/IndiaInvestments/comments/bhv18e/we...