Upstox Real truth | Upstox safe to invest | Upstox is good or bad (Real Truth )

stocks launched its retail operations in 2012. In a short period, the company became a popular online discount broker with millions of active customers. Upstox is good or bad The company is a member of BSE, NSE, and MCX exchanges. It is also registered with SEBI, NSDL, and CDSL.

upstoks is an online brand of RKSV Securities India Pvt. Ltd. It is supported by prestigious investors like Ratan Tata, Tiger Global, and GVK Devis. The company has raised money in 2 rounds. In 201 9, Tiger Global invested $ 25 million (approximately 19 million) in the company. upstoks Investors (by April 1, 2020) are included:

• Tiger Global Management: 31.1% stake

• Kalaari Capital Partners: 15.21% stake

• GVK Davix Technologies: 2.54% stake.

• Ratan Tata: 1.33% stake

The company is regulated by SEBI. It is regularly audited by stock exchanges and depositors. Any big violation by Upstox has not been recorded by any auditors in the last 8 years (by April 2020).

Many businessmen, especially those who are new to markets, often ask; upstoks is safe? What is upstoxs reliable? upstoks is trustworthy? This article will check on upstox and recognize how safe the business is with upstoks.

Also, read: Start investing in shares market with the little amount in India

About upstox

• Here are some important facts that you should be aware of upstoxs:

• In 2012, 3 young 1 generation was included by entrepreneurs.

• In the case of customers, the second-largest discount stock broker, daily exchange business, etc.

• Ratan Tata, Tiger Global, and GVK Davis have invested in the company.

• Millions of active customers from around India

• Benefit-building company Upstox is good or bad

• It is one of the fastest-growing financial companies in India.

• In-House Build Trading Platform Upstow Pro (Web and Mobile)

Why Upstox is safer than other brokers?

1. Economical Business Strategy
   Upstox runs on a low-cost online business model. Almost all services are offered online from a remote location. They don't have offices across various cities and towns. This helps the company offer low brokerage plans as it saves a lot on operational expenses like rent, salaries, etc.
   This business strategy makes them sustainable and less risky.

2. Highly Scalable Business Model
   Upstox’s online business model is highly scalable. The company continues to add thousands of customers every month without compromising on quality and risk.

3. No Advisory Services
   Upstox doesn't offer stock recommendations or financial advisory services. The company only offers online trading services. So, there's no conflict of interest or financial motive to push a particular product to the customers.

4. No Margin Funding
   Upstox is purely into the stock and commodity brokerage business. It doesn't offer risky products like margin funding to customers for trading.

5. No client shares in the pooled account
   Upstox doesn't keep client shares in a pooled account. All the shares are transferred to your Demat account on T+2 days. As Upstox customer's Demat account is with CDSL (one of the two national depositories for securities), the shares are safe in the Demat account.

6. Simple Brokerage Plan
   Upstox's brokerage plan offers free equity delivery trades and charges flat Rs 20 per executed order for intraday and F&O trades at NSE, BSE, and MCX. The same plan is offered to every customer including HNI's. No one gets special treatment. Having a single rate for all customers reduces operational risks.

7. No Proprietary Trading
   Upstox was founded as a proprietary trading company and later entered into retail brokerage space in 2009. Upstox stopped its proprietary trading business in 2017. The company doesn't do any more proprietary trading.
   Read Proprietary Trading by Stock Brokers in India - A risky proposition

8. Trusted by Lakhs of Customers
   Upstox services are trusted by lakhs of active customers from across India for many years. The loyalist of customers shows the trust Upstox made over the year.

9. Trusted by Popular Investors
   Upstox is backed by leading names in the industry like Ratan Tata, Tiger Global, and GVK Davix. Investments by such names in a company mean 2 things: the investors have high confidence in the management of the company, its corporate practices, and second that the company can grow. The funding also shows that the company is serious about its expansion plans and is thinking long-term.

Upstox Memberships

Upstox is registered with SEBI and leading stock exchanges like NSE, BSE, and MCX. All stockbrokers in India must register with SEBI and follow its guidelines. A stockbroker also needs to be a member of a stock exchange to be able to give its customers access to the exchange. All stockbrokers registered with SEBI and stock exchanges need to comply with their regulations and their accounts are regularly audited. Upstox has not been reported of any regulatory or other violation.

Upstox is a DP (Depository Participant) with NSDL and CDSL, the two Central Depositories that opens and manages Demat accounts in India. This membership allows Upstox to play the role of intermediary between the customers and the CDSL.

Upstox Membership Registration Numbers

• CIN number (RKSV Securities): U74900DL2009PTC189166

• CIN number (RKSV Commodities): U74110DL2012PTC236371

• SEBI Registration No: INZ000185137

• NSE Member Code: 13942

• BSE Clearing Code: 6155

• MCX Member Code: 46510

IS UPSTOXS RELIABLE?

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 has been around for almost 11 years now and has managed to build a trust factor for itself in this span. 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. Upstox is good or bad

This intern added to its popularity and made it reach 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, certain aspects need closer consideration. Dive in for the same.

Also Read: Invest money in bitcoin in India 2021

UPSTOX CLIENT BASE

Upstox active clients 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 increasing clients, which is 5 times more than that of 2016.

UPSTOX TRADING PLATFORMS

The performance of a broker's trading platform is a major factor in determining whether Upstox is safe or not. You chose to trade with the broker to make a profit. If the trading platform, its features, and technology are not decent, then there is no point in trading with it.

Upstox offers decent trading platforms - Upstox Pro Web, Upstox Pro Mobile, and Upstox Back-office known as Upstox Keystone.

Upstox Pro app has been rated 4.1 out of 5 by around 37,000 users. Hence, we can say that the broker provides good trading experience through its platform.

WHAT IF UPSTOX SHUT’S DOWN?

Most of the traders fear what will happen to their money/shares if their broker closes. Well, the answer is common to all stockbrokers and not just Upstox. Upstox is good or bad

If SEBI closes your broker due to any crisis, your shares remain with the depository and are safe. As already discussed, CDSL and NSDL (and not your broker) have control over your Demat account.

Also, if your money is stuck in your trading account with the broker, you can claim it under IPF (Investor Protection Fund). Note that up to Rs 25,00,000 can be recovered under IPF. No claim will be made for more than this amount.

Conclusion

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

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

While selecting a broker, it is advisable to be skeptical as you are going to invest your money in it. Also, considering the brokers that were recently closed by SEBI, there are always doubts with every broker especially you intend to make long-term investments.

It's okay to have confusion and doubt. All you have to do is research properly, identify your financial goals and read your contact notes carefully before opening an account.

Hope this article has clarified things about the security of Upstox. Open your Upstox Free Demat Account now. Happy Trading! Upstox is good or bad

Upstox is a safe, reliable, and trusted stockbroker. It has all the right credentials to become the top online stock broker in India. The company has built a strong customer base in a short period which speaks for its quality services. The company has won many awards on various platforms. In short, your money is as safe with Upstox as with any leading stockbroker.