Dhan’s pledged collateral unavailability strikes again on critical trading days, frustrating algo traders despite a year of otherwise smooth operations. This marks the third such incident in 12 months, pushing consideration of a Zerodha switch despite the hassle of account opening and holdings transfer. New traders get a strong warning: skip Dhan and start with Zerodha for dependable margin access.
Collateral from pledged holdings shows as available but fails to fund F&O trades on sporadic days, capping positions like today’s Nifty options deployment. SEBI pledge rules require explicit activation, yet Dhan’s system lags or rejects during volatility, unlike consistent peers. One year in, three disruptions signal unreliability for expiry-heavy algos.
Opening Zerodha demands selling holdings, CDSL transfers (3-7 days), and Tradetron API reconfiguration—workload delays full switch. Zerodha’s ₹300 AMC and ₹2,000 API fee contrast Dhan’s free tier, but superior margin stability justifies it for pros.
| Aspect | Dhan Pitfalls | Zerodha Strengths |
| Collateral Use | Intermittent blocks | Reliable across segments |
| Algo Costs | Free APIs | ₹2k/month fee |
| Reliability | 3 glitches/year | Proven for high-volume |
| Transfer Ease | Off-market charges | Free closure option |
Zerodha wins for margin-critical trading; Dhan suits low-stakes only.
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