Zerodha, an Indian discount brokerage firm, is facing a backlash from users after an app glitch caused some traders to lose money. The glitch occurred on July 07, 2023, and affected users who were trying to place sell orders.
On Friday, a lot of traders complained on Twitter that they couldn’t get out of their Sensex option transactions on Zerodha, which the low-cost brokerage claimed was caused by “issue with the internet service providers (ISPs)”.
It should be remembered that options for the Sensex expire on Friday. “Some of our users’ orders in the BFO segment were impacted due to an issue with the internet service providers (ISPs). The other parts’ trading was unaffected. We are attempting to update the impacted orders’ status. We regret the trouble this has caused,” Zerodha wrote on Twitter. BSE-F&O is referred to as BFO in Zerodha.
Zerodha commented to its user, “Due to an issue with the internet service providers (ISPs), the orders of some of our users in the BFO segment were affected. Trading in the other segments was unaffected. We are working on updating the status of the affected orders. We apologize for the inconvenience caused.”
Another user Avinash also posted on twitter,” Zerodha is there any issue with trade placing or changin SL. My SL change order did not execute on time and lost 15pts in profit. The zerodha app kept giving me msg that previous change pendind. Is there any issue #zerodha #Slchangefailures.”
Zerodha has said that it is investigating the matter and that it will take “appropriate action” once the investigation is complete. However, it is unclear how long the investigation will take or what kind of action the company will take.
The glitch caused some traders to lose significant amounts of money.
Zerodha has not been transparent about what happened or how it is going to fix the problem.
Users feel like they have been taken advantage of.
Zerodha is a large and well-known company, so people expect better from it.
The implications of the glitch are still being assessed, but it is clear that it has caused a great deal of anger and frustration among Zerodha users. The company will need to do a lot of work to regain the trust of its customers.