What is the safety of our investment. And for lot size investment in tht wht benefit we get. But main thing is safety of investment.
Hi Shailu,
We have had this discussion earlier, but in brief what I want to tell you is, there has never been any member of NSE who has ever run away with clients investment... NSE and SEBI is probably the best regulators in the whole world...
As far as Zerodha in particular is concerned, margin funding is what causes brokers problems when market turns around.... We don't do any margin funding and hence are probably the least leveraged brokers in the country today... Any margin funding if needed is pushed to ILFS who can take that risk being the biggest DP in the country with upwards of 10000 crs in cash with them....
an interesting trivia is, in the last fall of the markets from 6400 to 5100 on nifty, Zerodha as a member's margin utilization levels never went above 20% on any single day... Don't know if you can make out the importance of this, but because most of our clients are intraday traders, we were utilizing a max of 20% of the funds whereas the day nifty was around 5200 a lot of members were in the 60 to 70% range, some smaller members at closer to 80%... A day of panic and it would have hit the exchange threshold of 90%....
Cheers...
