Upstox is a Mumbai-based stockbroker. Stockbrokers act as a medium of trading between traders and the stock exchange. Upstox came into the business in 2012 and became a popular discount broker. Upstox is an initiative of 3 first-generation entrepreneurs. Currently over lakhs of active customers are associated with them, and it has become India’s second-largest trading platform. The company is registered with BSE, NSE, and MCX exchanges. It is also registered with SEBI, NSDL, and CDSL.
Upstox is a popular choice among users these days, because of their reputation between the customers, technology-first approach, and decade-long experience in the trading industry. The company is regulated by SEBI. It is also regularly audited by the stock exchange. These audits haven’t reported any major violation by Upstox to date. Upstox is an online brand of RKSV securities India private ltd. Few major investors in India have backed up this company:
- Tiger Global Management (31.1%)
- Kalaari Capital partners (15.21%),
- GVK Davix Technologies (2.54%)
- Ratan Tata (1.22%).
Is Upstox Safe and Trustworthy?
A lot of new investors have joined the share market post-pandemic. They have a major issue deciding the right trading platform. So, let’s know if Upstox is really safe?
- BUSINESS MODEL
The company aspires on adding thousands of active customers every month without comprising the quality of its service. It has a highly scalable business model. Upstox is in business for almost a decade, and it has prioritized maintaining credibility among customers.
- BUSINESS STRATEGY
The majority of the company’s work is done remotely. It doesn’t have offices in many big cities and aims to reduce costs by these methods. Hence, they save a lot in operational costs like rent, salaries, etc., and offer low brokerage plans to customers.
- NO ADVISORY SERVICES
Investors aren’t given any recommendations about stocks. Financial decisions are to be made by clients themselves. So, there’s no conflict of interest or financial motive to put forward a product to customers. This proves their credibility.
- NO MARGIN FUNDS
Margin funds are comparatively riskier to trade. Hence Upstox doesn’t offer marginal funds to trade.
- YOUR MONEY IS SAFE
The pooled account between two customers isn’t allowed in Upstox. Through Upstox, the Customers Demat account is with CDSL (one of the two national depositories for securities), the shares are safe. All the shares are transferred to the Demat account in 2 business days.
- SIMPLE BROKERAGE PLAN
The charge per executed order for delivery on Upstox including intraday and F&O trades at NSE, BSE and MCX are flat RS.20. this plan is offered to every customer, and no one gets special treatment on the platform. This reduces the operational risk of the company.
- NO PROPIETARY TRAINING
Initially, in 2007, Upstox was founded as a proprietary training company. It entered retail broking in 2012 and later in 2017 the company stopped its proprietary trading business. Hence the company does retail trading now.
- TRUSTED BY POPULAR INVESTORS
The company is backed by big investors like Ratan Tata, Tiger Global, and GVX Davix The company has raised funds in two rounds. Tiger G invested $25 into the company in 2019. Investments by these big companies mean that investors see high potential in the company and the company has high management and fair corporate practices. This also implies that the company is serious about its expansion and is thinking long-term.
- TRUSTED INVESTORS
Upstox, through time, has gained the faith of customers. It is in business for about a decade with lakhs of active customers from across India.
- TRADING MADE EASIER
Upstox has an easy-to-use app, and sorting options for everything like digital gold, IPOs, mutual funds, etc. It has made trading even quicker and easier.
Recommended: Upstox Customer Care Number
Conclusion: Is Upstox Safe?
Hence, we can conclude that it is safe to choose Upstox as our share broker.
Through the decade it has gained investors’ faith through its best practices. The reputation built in a small period speaks for itself. This company will keep your money safe. The company has also won awards on various platforms.