As the pandemic hit India in mid-2020, there was a stringent rise in demand for stock trading apps in India, namely Groww, Zerodha, and Upstox.
These apps allowed individuals in India to invest their money in stocks and shares, invest in IPOs, gold bonds, and mutual funds, and start their SIP within a few clicks. But the question arises: are these apps safe or not? After all, it is quite intimidating to share your personal and bank account details with these apps for investment purposes. In this blog post, I have discussed the most popular debate on the web, “Is the Upstox app safe?”
Upstox is one of the most popular stock trading apps in India, with millions of users and clients. However, some individuals still judge Upstox on its safety and are in a dilemma about whether to use it or not.
So, if you want to know if Upstox is safe or not for trading and investment, then keep reading this blog post.
Here is the highlight of this blog post.
1. Is the Upstox app safe in India?
2. Regulatory Compliance by the Upstox App
3. Security measures and features of the Upstox App for safety
5. Customer support through the Upstox app
Overview of the Upstox App in India
Upstox is the top-rated discount brokerage firm in India that offers an online platform for investors to invest their money in stocks, shares, mutual funds, and many other related securities. They are accessible, affordable, and simple to use with an intuitive user interface, making it easy for traders and investors to use the application.
Upstox was started in 2009 as an RKSV firm in a small apartment in Delhi. In the initial days, they were serving a small number of customers and helping them grow their investment in equities. Later, they moved to Mumbai, and the customer base went up to thousands of users.
Later, Kavitha joined Upstox and scaled up their growth strategy, finance, operations, and marketing. This was just the beginning of their scaling. In this phase, the company kept experimenting with new technology, strategies, and techniques to grow their business and provide seamless trading experiences to their customers.
In the year 2020, Upstox reached the mark of a million customers, and in 2021, they added a million customers in just a single month. Since then, the customer base of Upstox has grown day after day. all thanks to their marketing strategy and partnerships with the IPL and other cricket leagues in India.
A major chunk of customers do come from word-of-mouth referrals as well.
Is the Upstox app safe for trading?
The Upstox app is 100% safe and certified by the market regulator, the Securities and Exchange Board of India [SEBI]. It is also a member of two leading stock exchanges in India, namely the Bombay Stock Exchange and the National Stock Exchange. Hence, it is surely a safe and secure option for all your investment needs. It also follows all the security guidelines and compliance requirements set by the RBI and the Securities Exchange Board of India.
Besides, Upstox leverages the power of the latest technology. In fact, they are a technology-based firm that provides services in the space of finance. They use the necessary tools, latest technology, framework, cyber security measures, encryption, and firewalls to keep your money safe and secure all the time.
Is Upstox Safe for Mutual Fund Investment?
Yes, Upstox is also safe for all the mutual fund’s investments and starting your SIP. On the contrary, Upstox does not charge a single penny for mutual fund investments in India. You can start your SIP for free by using Upstox.
You will see loads of mutual fund options on Upstox listed by various asset management companies in India. There are funds from various categories, including small-cap, mid-cap, large-cap, hybrid funds, equity-oriented funds, debt funds, and a lot more, that will help you save tax and give better returns in the long haul.
Regulatory Compliance by the Upstox App
Upstox has followed all the regulatory compliance by SEBI and RBI, which makes it a 100% safe platform for trading and investment. It is also a registered member of SEBI, NSE, BSE, MCX, and CDSL. The company is also regulated by all the stock broker regulations, which further adds to its safety.
To further ensure security, Upstox uses the TPIN number, which is required to verify the identity of each user for call and trading purposes. With TPIN verification, no user can trade. This will curb the chances of someone else using your account for trading, theft, security issues, hacking, and related cyber fraud.
Hence, Upstox is safe for trading and investment purposes.
Security Measures of Upstox for Safety
Trust, security, authentication, and transparency are the most important factors that Upstox takes into consideration for the safety of their users. Upstox ensures that the funds and money of each investor are safe and secure. That’s the reason why they take users’ trust and safety seriously.
Upstox will never compromise the user’s information and personal details regarding their bank account or other information with any third-party vendor or marketing service. They have an impeccable track record with all their users over the years for privacy and trust, making them one of the best trading platforms in India.
Besides trust, Upstox also takes security very seriously and ensures not to release customer information and sensitive data to third-party vendors and advertisers. Users trust and personal information are both safe with Upstox. From your email address to bank account details, every piece of information is safe and secure.
Upstox is also protected with two-factor (2FA) authentication.2-factor authentication protects the application against unauthorized access and protects the sensitive information of the users. Its purpose is to make it harder for cyberattacks and reduce fraud risks.
Is it safe to open an account on Upstox?
Yes, it is 100% safe to open an account with Upstox because it is registered with SEBI. Upstox registration number is INZ000185137 (as RKSV Securities India Pvt Ltd), and it is also backed by top-rated investors like Ratan Tata and Tiger Global. Plus, it is a registered member of top-rated stock exchanges in India like the BSE, NSE, and MCX exchanges.
Moreover, millions of users use Upstox for all their trading and investment-related needs.
Nowadays, you don’t need to worry about your money being stolen from any of the stock trading apps because SEBI asks exchanges to email you all the details of the trade that you have executed and the investment made at the end of the stock market. Upstox will also send you a contract note in which all the details of your trade and investment, charges, and everything else will be mentioned.
Besides, Upstox will send you fund details monthly and weekly so that you can keep an eye on all your transactions hassle-free.
Is Upstox approved by SEBI?
As of my last update, Upstox is registered with the Securities and Exchange Board of India (SEBI), which is the regulatory authority for the securities market in India. SEBI regulates and oversees the functioning of stock exchanges, brokers, and other participants in the securities market to ensure fair and transparent trading practices.
To determine whether Upstox is currently approved by SEBI, you should check the official SEBI website or contact SEBI directly for the most up-to-date information. Regulatory approvals are subject to change, and it’s crucial to have the latest information to make informed decisions when it comes to trading and investing.
What Are the Benefits of Trading with Upstox?
1) Cost cutting
First things first, Upstox is a low-cost brokerage firm in India, and you are bound to save money while trading and investing via Upstox. Unlike other stock brokerage firms in India, Unstox does charge commissions depending on the volume of the trade. Rather, they charge a flat fee irrespective of the trade volume you do. This allows you to save more money.
2) Easy to use
The Securities and Exchange Board of India (SEBI), the regulatory authority for the market, now requires brokers to thoroughly verify customer details as part of the Know Your Customer (KYC) norms. This involves in-person verification (IPV), a process we seamlessly conduct online, ensuring a swift account opening experience that typically takes 1-2 working days. While other brokers may take days or even weeks to open trading accounts, Upstox’s commitment is to make the process as quick and smooth as possible.
Upstox proudly embraces technology, positioning itself as a technology-driven firm within the financial services sector. Their continuous innovation aims to furnish you with advanced tools for making informed and intelligent trading decisions. Examples include their brokerage calculator, SPAN calculator, and options builder tool, showcasing how they harness technology to provide top-notch trading resources.
4) Customer support
Upstox’s claim to fame lies in boasting one of the finest customer service teams in India. They prioritize efficiency by aiming to answer all calls within 30 seconds, minimizing wait times. Additionally, their online ticketing system ensures that customer queries are addressed promptly and effectively.
FAQs about Is Upstox Safe or Not for Trading and Investment
Upstox employs robust security measures to safeguard your trading activities. These include encryption protocols, secure login procedures, and constant monitoring to protect your financial transactions.
Upstox follows stringent data protection protocols and complies with regulatory guidelines to ensure the confidentiality and security of your personal information. Your data is handled with the utmost care.
Upstox employs secure payment gateways and implements industry-standard security features to protect your financial transactions. Your funds and sensitive information are well protected during the entire process.
Yes, Upstox implements multi-layered security measures, including two-factor authentication (2FA), to prevent unauthorized access to your account. This additional layer of security enhances the safety of your trading activities.
Upstox has a strong commitment to security and has taken measures to ensure the platform’s integrity. It’s essential to stay updated on any security-related announcements and follow best practices for online security.
Upstox has a dedicated team focused on monitoring and addressing cybersecurity threats. In the event of an incident, prompt action is taken to mitigate risks and protect user accounts and data.
Upstox is a registered and regulated brokerage platform, adhering to the guidelines set by regulatory authorities. It has gained credibility over time and is trusted by a significant number of users for their investment activities.