How to avoid the technical glitches of Zerodha 😈🚥or any brokers!?

Pavan 5th Dec 2023

zerodha-technical-glitches

Technical glitches have become common in the Stock Market, whenever the market moves or gets a trading opportunity then it’s likely to get technical glitches, the biggest and nowadays it has become common to get technical glitches on Zerodha and some other brokers with huge client networks on their platforms.

Today Nifty, Banknifty and the overall stock market hit an all-time high following the BJP’s remarkable victory in three major state’s assembly elections – Madhya Pradesh, Rajasthan and Chhattisgarh with a high majority like never before in these states and this came before the 2024 General Elections of India.

Zerodha, India’s largest discount brokerage firm, faced technical glitches that made much retail trade lose the opportunity to trade in the market also many clients were struck with their positions which created a panic situation among retail trading communities and many users took Twitter or X social platform to express their feeling and kept wait for hours before the problem was solved by the brokerage firm.

Zerodha promptly acknowledged the issue, informing the user to log in to Zerodha’s kite mobile app since their kite website is not working and will be resolved within one hour and also stated that this issue came after recent changes in the database system.

Many times such opportunities won’t come in the stock market and missing a well-known bullish trend on indices like NIfty or Banknifty is very painful to retail clients since only 5 per cent of traders are successful and such glitches take away the hope of winning in the stock market for rest 95 per cent traders.

List Solutions for Technical Glitches in the Stock Market

  • Retail Traders must have multiple trading accounts – Retail traders should have at least 3 trading accounts if he or she is an active trader.
  • 3 Trading accounts should be one at a discount brokerage firm, another one at Bank bank-backed Brokerage firm and the last one at a local trustworthy broker with a small client base.
  • The trading amount should be divided equally between all brokers and you should be taking cash settlement on every monthly basis and equally distributing it among your trading accounts
  • You should report such glitches or any problem you face to SEBI and NSE without thinking much about it. Since many of our 99 per cent traders don’t report their problems to the regulator, brokers take advantage of this.
  • Have a good knowledge about recent updates and news and prepare for your trading activity a day before and should have login in 3 accounts to avoid any such adverse situations
  • Learn and have sound knowledge about Stock Market Risk Management systems and compliance.
  • If such a situation comes to you then first be calm and then look for the solutions, don’t panic and take unnecessary steps.
  • Make sure to hedge your position always since it is a more powerful way to keep you calm in any situation in the market.

What Stock Market regulator SEBI is doing on Technical Glitches?

SEBI is the Stock Market regulator and they should track these technical glitches on priority but unfortunately, our regulator is behind retail traders and actively doing the following things

  • Impose taxes and extra charges.
  • Remove margins on the name of “Protecting Retail Traders”.
  • Make brokers open NBFC and funds again to retail traders. 
  • NBFC takes an interest in such margins and collects GST for the same services.
  • Increasing the cost of Trading activities.
  • Making stock market data feed costlier instead of making it affordable for learning.
  • Providing zero knowledge about the Financial market and keep tightening it for retail traders.
  • Never penalise brokers for technical glitches since it is already mentioned in the regulation that Technical glitches can happen at the broker or exchange end. 
  • SEBI never want to modify and make new regulation on Technical glitches or Tech related to the Stock Market even after being 2nd largest marketplace in the world in the form of volume.
  • Many more and I don’t want my readers boring so I am stopping here.

This is how Indian Stock Market, regulators, exchanges, brokers and even unquestioning traders work in India. Digest technical glitches until you get a better player to come in and one big player is coming to solve this problem and we will discuss about it in the next post.

Till then bye and Have a nice trading day ahead.