Zerodha faces another tech snag; users complain for losing money in trades

Zerodha’s broking platform experienced a complete freeze for a short period on June 21 causing significant issues for traders. 

Reportedly, during this time stocks like India Cement, which were no longer under the F&O ban, were erroneously shown as restricted, preventing traders from placing orders. According to reports the platform has reportedly resumed normal operations following the brief outage.

Not long back, on June 3, Zerodha encountered similar technical glitches. This occurred as domestic benchmark indices reached record highs following exit polls on June 1, which indicated a potential third term for PM Modi's government in the Lok Sabha elections. 

Also Read: Zerodha hit by tech glitch, users face issues with kite web access
 

The stock broking platform has faced similar tech glitches in January this year, and in November and December last year.

Also Read: Zerodha users face service disruption for third time in 3 months 

Users on Friday vented their frustrations on social media platform ‘X’, calling for a shift from the stock broking firm, while others said they have already shifted to other platforms. Zerodha has not not confirmed or responded to users complain around the tech glitch today. 

An X user asked, “Who will take responsibility for my loss due to Zerodha’s freeze?” 

Another user said, “Zerodha is not working again, looks like it is a routine glitch for them.” While some users also advised to stop using zerodha or keep losing money without knowing. 

One user also requested SEBI to force Zerodha to fill losses of retailers from their own pockets before they sermonise traders for losses. 

On the flip side, IIFL brokerage accounts also faced a freeze due to large order placements that exceeded their margin limits, thereby preventing derivatives positions from being placed.

Concerned users expressed their frustrations on social media:

Aditya Singhania (@Simple_trader_) tweeted:

"Unexpected chaos today! Zerodha and IIFL both malfunctioned simultaneously. Looks like I'll need to keep 3-4 backup brokers handy."

Jaynesh Kasliwal (@JayneshKasliwal) posted:

"IIFL is down. Algotest is down. Zerodha is down. All three at once!"

Groww versus Zerodha

The direct competitor of Zerodha, Groww overtook the company in terms of active users last year in September. However, according to the latest data theactive client base of Groww (Nextbillion Technology) crossed the 10-million mark in May, making the Bengaluru-based discount broker the country’s first such platform to achieve this milestone.

Also Read: Groww's active client base tops 10 mn; becomes 1st broker co to attain feat

As per data provided by NSE, Groww’s unique client codes (UCCs) stood at 10.36 million in May, a quarter of total UCCs of 41.4 million. The venture capital-backed broking outfit’s client base has almost doubled in the past year. Zerodha Broking, which is the country’s most-profitable brokerage, has UCCs of 7.51 million, cornering 18 per cent market share, Business Standard had reported earlier.