Update: Fee increase on Call & Trade and RMS Square off

March 19, 2020

Traders,

Over 1 million clients log on to our platform every day to trade. A small portion of the client-base, around 5% of clients, trades intraday using product types like MIS (Margin Intraday Square-off), BO (Bracket Order), and CO (Cover Order). The clients are required to square off these product types on their own, failing which our risk management team (RMS) squares off these positions on behalf of the clients, at an additional charge, usually between 3.15 pm to 3.20 pm daily.

However, traders not exiting MIS/BO/CO positions on their own creates a situation where between 3.15 pm to 3.20 PM, our RMS team is forced to square off tens of thousands of positions in a short period of time.

But, there are limitations in terms of how many orders per second a broker can fire on the exchanges. This additional load normally degrades the performance of the trading platform in that period when positions are being forced squared off, and on rare occasions like yesterday (18th March) extremely severely. The probability of this scenario goes down if intraday clients squared off their positions on their own as they are required to.

Over the years, we have charged Rs 20 / executed order for all orders squared off by our RMS team as Squareoff or Call & Trade charge to push customers to square off intraday positions on their own. However, this additional fee hasn’t reduced the number of positions that end up being squared off by our RMS.

To try and reduce this bottleneck towards the market close time daily, we are making the following changes starting 19th March 2020:

  • We are increasing the RMS square-off charge and Call-and-Trade charge to Rs 50/executed order. You can avoid paying this charge by squaring off your intraday positions yourself.
  • The Call & Trade charges for calling our dealing team will also be increased to Rs 50/order through the dealers on the phone.
  • With the current volatility in the markets, our RMS team has to dynamically change the leverages and intraday square off times. We have created this page on our bulletin that will be updated anytime there is a change. Please bookmark this to check out at any point in time so that you don’t have to reach our support desk.

IMPORTANT: We’ve been operating under our COVID-19 contingency plan for business continuity and the safety of our team, where over 1200 members of our team are working from their homes. Owing to this, for your support requirements, please create a support ticket instead of calling us as our support lines have been experiencing increased delays over the last week.

 

Stay safe,

Nithin Kamath

CEO @ Zerodha and partnering startups through Rainmatter to help grow and improve the capital market ecosystem in India. Love playing poker, basketball, and guitar. @Nithin0dha on Twitter.

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