Is Upstox Safe?

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Wondering is Upstox Safe?

Well, this question strikes in the mind of almost every other trader who is looking forward to opening the Upstox Demat account.

It is good to stay safe and therefore we are here to provide you the information about the reliability of the broker.

Let’s dive in!

Formerly known as RKSV Securities, Upstox is a popular discount broker known for its low brokerage, high margin and a decent trading platform. 

Whether to trust this broker or not can be known by knowing by understanding whether it offers a safe trading platform.

Is Upstox SEBI Registered?

Upstox, formerly known as RKSV securities is a Mumbai-based discount broker. The firm was founded in 2009 and started retail brokerage in the year 2012.

The broker is registered with SEBI with the registration number: IOA185135

Also, the broker has set up the foot in the market around 11 years ago and in this span has managed to build a trust factor for itself. Further, it offers stock and commodity trading in NSE, BSE, and MCX. You can also invest in mutual funds and IPO through the Upstox trading platform. 

At the time when Upstox was established, the account opening process with any stock-broker was a tedious task. Upstox is the first Indian discount broker that made this process completely paperless.

This in-tern added to its popularity and made it reach towards tech-savvy investors and tier 2 and tier 3 cities.

Therefore, the generic idea of Upstox is that it is a legit and trusted online broker. However, there are certain aspects that need closer consideration. Dive in for the same.

Upstox Client Base

Upstox active clients actually portray the goodwill of the broker and ultimately its safety. Only a reliable and legit broker can have a good client base.

As per the latest data of the NSE (National Stock Exchange), Upstox has 5,55,302 clients. Besides, the firm has managed to garner a position in the Top 10 brokers of India.

Talking about the growth in clients, Upstox has had its fair share of range. Initially, when the broker started off retail trades in 2012, its client base was very low.

In the year 2016, the broker had about 25,000 active clients and at the beginning of 2019, this number jumped to more than 1,60,000 active clients.

This clearly shows that Upstox has come a long way in terms of an increasing number of clients – which is 5 times more than that of 2016.

Upstox Complaints

The number of complaints filed against a broker portrays how good or how bad the trading experiences can be through its platform.

Talking about Upstox, the number of filed complaints from 2019 till March 2020 is 120. In simple words, 120 out of the 5,55,302 clients have had issues with Upstox.

As per the data available on the firm’s website, about 90% of these complaints have already been resolved/addressed. 

Taking the Upstox pro reviews into consideration, most of the users have had issues with the broker’s customer support. Upstox offers online support rather than a face-to-face one which causes various trading obstacles.

So clearly, the Upstox Customer Support system is not the best thing about the firm.

Is Upstox Profitable?

When it comes to making a profit then everyone thinks of the charges imposed by the broker for various services.

Here comes the point, being a discount broker with too many benefits, Is Upstox free?

So, when it comes to account opening, yes it is free with Upstox, along with this the broker offers the benefit of free trade of up to ₹1000 for the first month of account opening.

Other than this there are charges for account maintenance which is ₹25 per month and the brokerage which is equal to ₹20 for trading in different segments.

Here to check the profitability in terms of brokerage you can check review on Upstox vs Zerodha charges that helps you in making a right decision to some extent.

Upstox has recently launched the provision for IPO applications through its trading platform. Hence, as far as profitability is concerned, Upstox offers decent services that can garner profits.

Is Upstox Safe For Long-Term Investments?

As a trader, you will prefer to make long-term investments with only a reliable broker. As mentioned before, Upstox, in its 11-year long tenure had built a decent trust factor and goodwill for itself.

Due to this, chances of goof-ups and errors are very little which ultimately makes Upstox a safe option for carrying out trades.

However, it is important to understand that a Demat account and the shares in it are under the control of Depository Participants or the DPs. Upstox, or any broker for that matter, only make the shares available for you.

In case Upstox shuts down for some reason, your shares will be safe with CDSL and NSDL (the DPs). 

Upstox Trading Platforms

The performance of a broker’s trading platforms is a major aspect to determine is Upstox Safe. You chose to trade with a broker to earn profits. If the trading platform, its features, and technology are not decent, there’s no point trading with it.

Upstox offers decent trading platforms namely – Upstox Pro Web, Upstox Pro Mobile and the Upstox back-office which is known as Upstox Keystone. 

The Upstox Pro App is rated 4.1 out of 5 by about 37,000 users. Hence, we can say that the broker offers decent trading experiences through its platform.

Although the rating is a good many users still complain about the Upstox app not working.

It is good to dig deeper to check all the technicalities of the app before choosing the broker for demat account opening.

What If Upstox Shut’s Down?

Most of the traders have the fear that what will happen to their money/shares if their broker shuts down. Well, the answer is generic for all stock-brokers and not Upstox alone. 

If SEBI shuts down your broker due to some crisis, your shares remain with the depositories and are safe. As already discussed, CDSL & NSDL (and not your broker) have the control of your Demat account.

Besides, if your money is stuck in your trading account with the broker, you can claim it under the IPF (Investor Protection Fund). Note that an amount of up to 25,00,000 can be recovered under the IPF. A sum higher than this shall have no claim.


So open an account with Upstox only after considering is Upstox Safe or not?

You can do this by ensuring things like elements, and facts.

While opting for a broker, being suspicious is justified because you are about to invest your money in it. Moreover, considering the brokers that have been recently shut down by SEBI, one always has a doubt with every broker especially you intend to make long-term investments.

Having confusions and doubts is totally fine. All you need to do is research properly, identify your financial goals and read your contact notes carefully before opening an account.

Hope this article made things clear about Upstox’s safety. Open your Upstox Free Demat Account now. Happy trading!

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