I quit active trading from Z.. long ago when they limit 60-day brokerage refund to Rs 30,000.
I just saw Nifty, Bank Nifty margin NRML is substantially increased to 10% from 8%. So, that MIS, BO, CO all margin are increased as all based on NRML.
Currently, Bank Nifty NRML margin is over 1 Lakh(10%) whereas most of the discount brokers even Finvasia has around 80,000 (8%).
So, all 3 steps, done together.
1. No refund from 60-day challenge.
2. No referral income. and most importantly,
3. Reduced leverage significantly. They reduced only intraday leverage but also positional leverage! Most of the traders would not like new 10% margin for Index Future. Even BO margin for Bank Nifty increased to 20,000! New MIS margin for BNF 41,000+
So, now currently Zerodha's margin requirement for NRML and MIS is higher than zero brokerage broker Finvasia.
Even zero brokerage Finvasia NRML is 8% and MIS is 2X so for BNF its about 80,000 and 40,000.
All most all other discount brokers charging only 8% for NRML and MIS is 2.5X-3X there.
It is clear that Zerodha wants to cut the load desperately.
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Ending 60-day challenge and referral income is the separate thing but cutting leverage is not a good idea for any broker in the long run. IMO.
8 to 10% increase means margin requirement is increased 20% -> very big for retail traders. This process was also silent. 20% less capital means 20% less income for pro high volume traders, so they will shift surely. But, I m sure very few high volume traders left in such vulnerable & unstable system now, so they take such steps confidently.