Zerodha aims to double daily turnover to Rs 10,000 cr by FY15

The company currently contributes around Rs 5,000 crore per day in turnover to various exchanges

Zerodha, a Bangalore-based online stock and commodity trading platform, is aiming at doubling its daily transaction turnover to Rs 10,000 crore by the end of the next financial year, according to its founder and chief executive officer Nithin Kamath.

The almost four-year-old company, which had introduced the concept of flat brokerage of Rs 20 for every trade done through its platform irrespective of the size of the trade, currently contributes around Rs 5,000 crore per day in turnover to various exchanges. The company has a little over 35,000 clients.

“Right now, it is a bad phase for the markets. If the markets stabilise, we are hopeful of doubling our daily transaction turnover, besides doubling our monthly net addition of clients from the present 2,000 by FY15,” he told Business Standard.

Stating that close to 90 per cent of its turnover on exchanges comes from futures and options while the remaining flows in from commodities etc, Kamath said Hyderabad (15 per cent) was the second largest contributor to its transaction turnover from south India, next only to Bangalore, which accounted for 20 per cent.

To launch new tech platform
Zerodha is currently in the process of launching a new technology platform, using which one can convert his/her technical analysis strategy from an idea into a script/code.

“We have bought the source code from an international company and are working on it to customise it to the Indian standards. We intend to launch this new technology platform, which has already been tried and tested across the world, in January 2014,” Kamath said.

The new technology helps the user back-test his/her analysis strategy to see if it had been profitable in the past 15 years and then only take it live. When one takes the strategy live, whenever a buy/sell signal is initiated, one gets a prompt to take action and can do so based on a predefined quantity and stop loss percentage.