Zerodha’s focus in 2023 was backend systems, R&D; alert triggers basket & more in pipeline: Nithin Kamath
Zerodha focused on backend changes in 2023, streamlining systems and paving the way for new products and features.
Zerodha's focus in 2023 was on backend and behind-the-scenes changes - including technology, operations, compliance, and customer support, founder Nithin Kamath explained in a new post on the company's business developments. ‘’Our 13th year was dedicated to streamlining, overhauling and refactoring the behind-the-scenes systems, and R&D, paving the way for several new products and features we have in the pipeline,'' said Kamath in a new blog post.
Zerodha's mission statement as a business has evolved naturally since starting in 2010 when it was all about reducing trading costs and bringing transparency to broking. ‘’Today, it is about helping the customer do better with their money and manage their wealth holistically; not just in terms of money,'' said Kamath.
Zerodha is also working on ways to integrate offerings from this universe of partners (health, climate) holistically so that they are meaningful to customers’ wealth and money management like they have been doing over the years with our fintech partnerships—smallcase, Sensibull, Streak, Ditto, Tijori, Quicko and others. You can check out the full Rainmatter portfolio.
Here are a few select updates of Zerodha from last year:
Trading platform
New universal search on Kite enables discovery and searching of all instruments available for trading and investing including mutual funds, govt. securities, T-Bills, state development loans, and IPOs in one place.
Charts: Latest versions of ChartIQ and TradingView with 20+ new indicators, 10+ new drawing tools, 5 new chart types, and keyboard shortcuts. We re-wrote the entire backend for charts and migrated billions of rows of chart data points to a more performant, distributed database bringing support for custom time frames.
Auctions: Place orders in the auction market (that opens daily at 2 PM) on Kite, where exchanges invite sellers to offer their shares that are short-delivered, typically at a premium.
Bids: New unified bids orderbook on Kite to bid on Govt. Securities, T-Bills, and SDL (State Development Loans).
Virtual contract note: Real-time estimated breakdown of brokerage, STT, stamp duty, exchange transaction charges, SEBI turnover charges, and GST for the day. Unlike conventional contract notes, this version also offers order-wise charge details to see charges for an order before placing it.
Backoffice
Near-instant account opening: A complete revamp of the account opening systems now enable near-instant online account opening.
Family accounts: Add family members with Zerodha demat accounts to Console and view the consolidated holdings and analytics.
Verified P&L: Verified P&L allows users to publicly share their P&L report proving its authenticity.
Fundamental Insights: Console now offers fundamental insights for the stocks in your portfolio, with data from our partner, Tijori, showing historical performance of stocks against their sectoral benchmarks, revenue sources, historical revenue patterns, and peer comparisons.
R&D
On R&D developments, Zerodha said that 2023 has been a year of numerous invisible tweaks and rewrites of mega-projects for backend systems and infrastructure, many of which involved considerable risk. Kamath added that these have been crucial to handling any technical debt and laying the foundation for major upcoming product updates.
‘’Over many months, we migrated 100s of billions of portfolio records to an entirely new high-performance database backend. Migration for all similar databases continues,'' he said. Zerodha also migrated all systems and applications including legacy ones to a modern, robust, runtime environment. The company deployed significantly improved infrastructure-wide logging, monitoring, and auditing systems.
What next for Zerodha?
Kamath explained that they believe there is no absolute trading strategy that can guarantee returns. ‘’To improve the odds of doing well, we need to reduce breaking a few basic trading rules like portfolio diversification, having stop losses but not too many, not going against the trend,'' he said.
‘’We started this with Nudge for Penny stocks nudge which reduced our penny stock trading volumes by over 70 per cent, helping our customers significantly,'' he added. All the systems and infrastructure overhauls done over the past year has enabled Zerodha to develop the next generation of nudges that can help customers do better when trading the markets.
Here are some product updates Zerodha has in the pipeline:
Realtime Nudges: Set alerts, trigger orders, or even enable Kill Switch based on rules on live P&L.
Nudge Assist: A system that analyzes trades and provides actionable insights when deviations from the rules set for your trading discipline occur.
Alert triggers basket: Execute a basket of orders when an alert triggers.
Trade from Option Chain: A new OI-based order execution experience for active traders.
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