What is Upstox, How Does It Work & Make Money?

Do you want to invest your money in the Indian stock market and buy shares of listed companies? Or, do you want to start your SIP by investing in mutual funds via asset management companies? If your answer to the above two questions is yes, then Upstox has got your back covered.

If you are wondering what Upstox is and how you can use it for trading and investment, then keep reading this blog post till the end. In this blog post, I have covered all the relevant information regarding one of the biggest trading apps in India, Upstox.

At the end of this blog post, you’ll learn about the following points:

1. What is Upstox?

2. Company information

3. Whether Upstox is legal in India or not

4. How can you use Upstox?

5. Features and products of Upstox and a lot more

So, without further ado, let us start learning about the meaning of upstox.

What is Upstox?

Upstox is the second-largest online stock broking firm in India after Zerodha. It offers trading and investing opportunities in shares, stocks, commodities, futures and options, and mutual funds at unbeatable rates. It has an upper hand over Zerodha and its competitors over annual account maintenance charges and investment in mutual funds. You can use the Upstox application on mobile phones and web apps as well.

Upstox has also collaborated with Indusland Bank to provide its users with a 3-in-1 savings account, trading account, and demat account facility. You can trade from the same account and earn interest on your used money in the Indusland bank account. You can open all three accounts with a few clicks.

Currently, 1 crore plus Indians are using the Upstox application for all their trading and investment needs. Plus, it has also won many awards and recognition and is backed by some of the top investors, including Ratan Tata and Tiger Global. Therefore, you can completely trust this app for all your investment needs.

How does Upstox work and make money?

Trading and investing in the stock market are not free. If you want to trade in the stock market or invest in shares, then you need to pay a brokerage fee or a commission to the broker. Usually, this brokerage is the percentage of your value traded in the market. So, if the value of your trade or investment is higher, then you have to pay more breakage, and vice versa.

In the case of Upstox, you just have to pay a flat fee, irrespective of your trade value and investment. Also, investment in mutual funds through the Upstox app is completely free of charge. This means it will help you earn more money and save on costs. Upstox believes in charging zero brokage, which helps their users save.

So, how does Upstox make money, or how is it profitable?

Upstox is a completely online platform with no physical offices in India, unlike other stock brokers. It has only one office, which is located in Lower Parel, Mumbai. This online business model helps Upstox save on operation costs and be more efficient.

By not having offline branches! Offline branches unnecessarily increase costs for brokers. In fact, brokers that have offline branches can only recuperate the costs by charging higher brokerage fees or by providing trading terminals at the offline branches that charge higher brokerage fees than online fees.

Besides, Upstox is known for leveraging technology to scale up businesses and provide complete online trading and investment solutions to their customers, which helps them reduce overhead costs. One such example is their online ticketing system, which they use to solve customers’ queries and doubts.

Is Upstox safe or legal in India?

Yes, Upstox is a 100% safe and legit trading and investment platform in India. It is registered with SEBI and backed by big investors like Ratan Tata and Tiger Global. It is also a member of NSE, BSE, and MCX exchanges and CDSL depositories. It is also beginner-friendly and provides an investment platform in stocks, shares, mutual funds, and other assets.

It was started in 2012, and since then, no major violation has been recorded by Upstox or any of the auditors. A lot of traders and investors, especially those who are beginners in the market, also consider Upstox a safe and legit platform in India for trading and investment purposes. The only drawback of Upstox is that it does not have a lot of physical offices, unlike traditional brokerage firms in India.

History and founder’s information

Upstox started its journey in 2010 when it got its license to start a trading business in India under RKSV Securities Private Limited. In 2012, it entered the retail trading space, becoming the first to launch trading plans in India.

Within two years, they hit 4000 crores in revenue, all because of their loyal customers. The year 2016 was a major turnaround year for them, as they got Series A funding of $4 million from Kalaari Capital and Ratan Tata as well. In the same year, RKSV Securities became Upstox.

In the year 2022, their revenue went up to 60,000 crore.

Here’s a look at the vision statement of the company.

• Everyone has financial security without barriers.
• Indians are investing in India’s growth by investing in her companies.
• The wealth gap reduces. GDP per capita increases.
• Everyone is financially literate and empowered.
• Wealth becomes a given. So that everyone can focus on passion, creativity, growth, contribution, and excellence.

Upstox Features and Products

1) Pro web

As the name says, Upstox Pro Web is a web and desktop trading platform for professional traders only. The platform works with any browser, namely Chrome, Mozilla, Opera Mini, Microsoft Edge, and a lot more, allowing users to access their stock trading accounts hassle-free. The platform comes with top-notch features like API integrations with third-party apps, charting tools, indicators, algo trading software and tools, heat maps, and many other tools that might help traders make money online.

The best thing about this platform is that it gives information and news based on daily changes in stock market trends and gives solutions based on those changes. There are also more than 100 indicators that can be customized as per your wishes.

With Pro Web, you can also place bracket orders and cover orders using the Pro Order Placing feature. There is also a one-click trade option, which will allow you to buy and sell any securities with high volatility.

In case of any doubt or query, you can contact their customer support, which is available 24 hours a day.

2) Pro mobile

Similar to Upstox Pro Web, there is something called Upstox Pro Mobile, which is a pocket-friendly trading platform for traders who cannot carry their desktop system everywhere. Upstox Pro Mobile is slightly different from the regular Upstox Mobile app. The Pro version comes with more advanced trading tools, software, charts, and patterns for professional traders only. With this application, you can trade in securities like stocks, derivatives, currencies, and commodities listed on the NSE, BSE, and MCX.

Using the Pro App, you can buy and sell stocks much faster and easier, and you can option trade with low risk and high gain. There is also a click-buy and sell option for futures and options.

3) Mutual funds

Now here comes my personal favorite feature of the Upstox application. Upstox charges zero commission on investments made in mutual funds. You can directly invest in mutual fund companies and enjoy returns either by starting your own SIP or lump-sum investment. There are more than 2000 mutual funds available on Upstox for investing and trading. You can choose the mutual fund of your choice and go through the details of the fund, like the ROI, minimum investment required, expense ratio, fund’s unit, NAV, and a lot more.

Although you can purchase mutual funds from anywhere online, it is important to study and research the components of each mutual fund before investing. That’s because nobody wants their money to get wasted, right?

The Upstox team decided to make it easy for you to find, study, and understand mutual funds. You can choose the ones suitable for your financial dreams. The search filters and charting tools help you view your potential returns prior to purchase.

4) IPOs

Here’s another feature of Upstox that is applied to the upcoming IPOs of companies. You can apply for the IPOs of various companies using the UPI method only. So, in order to apply for an IPO via Upstox, you need to set up your UPI first and link your bank, PAN, and Aadhar to Upstox. Once you have set up your UPI, you can login to Upstox Pro or open your Upstox mobile app and apply for the IPO within a few clicks.

5) Future and options

If you want to trade in futures and options, then Upstox has got your back covered. Most people in the trading world say, “Investing in futures and options is a gamble”. However, Upstox makes it easy for you by curating ready-made strategies. There are a total of seven option strategies that Upstox offers. They are as follows: Bull call spread and long call, bearish put spread and long put, long straddle, iron condor, and short straddle

There is also a P&L chart that will give insight into how much will be made or lost on the strategy if the spot price of Nifty or Bank Nifty moves at a certain price. It is the best measurement tool for analyzing the risk-reward ratio before entering or exiting a strategic position.

6) Stocks

Do you want to buy shares or stocks of companies listed on the BSE or NSE? If yes, then you can do it through Upstox, which is a leading trading app and website in India. It has a simple and easy-to-use interface and a range of features to give you a seamless investing and trading experience. In order to invest in stocks via Upstox, you need to open your demat account. Upstox offers free demat account opening. You just need to submit your PAN and Aadhar card details and complete the KYC. Within 2–3 days, your account will be created.

Once your account is approved, you can buy and sell stocks in various listed companies. Make sure to do your research and analysis well before investing in any stock. You can also use the Upstox research tools to your benefit and pick the best stock for the future. You can also dive deep into the company’s financial status, track market reports, and access the latest stock updates.

Once you have both stocks of any company, make sure to regularly monitor the performance of your investments. Manage your portfolio according to your investment preferences. You can use Upstox’s real-time market data to stay informed of the latest developments.

7) Indices

You already know that there are more than thousands of stocks listed on the NSE, BSE, and various other stock exchanges in India. However, it is next to impossible to study how the price of stock moves up and down. So, you need an indicator that can help you assess how the market is moving. This is where stock market indices come into the picture.

You can think of stock indices as KPIs, or key performance indicators, of some of the top individual stocks listed on the exchange. They act as a tool that is being created by grouping together different stocks listed on exchanges.

These indicators assist in assessing the potential direction of the overall market and assessing shifts within the market or its specific segments. Various categories of stock market indices exist, including benchmark indices, sector-specific indices, and thematic indices. Calculating these indices involves various methods, including full market capitalization, free-float market capitalization, price-weighted calculations, or equal-weighted calculations.

8) Developer API

Do you want to know what Upstox’s developer API is? If yes, then I will tell it you. Developer API is a set of APIs, tools, and data that are required to build your own trading platform in India. Once you create your own trading platform, it will help you execute orders in real-time, manage your portfolio, stream live markets, and much more. If you are a trader, then you can also create your own apps from the Upstox mobile app or desktop platform itself.

That’s not all. That’s not all. By using the developer API, you can also create platforms and code for real-time order execution. The Upstox API supports 10 programming languages: JavaScript, Python, HTML, C++, and a lot more.

There are many different types of APIs available, and the following are some:

A. Interactive API

The interactive API will help you place, modify, and cancel various types of trading orders.

B. Historical API

As the name says it all, Historical APi will offer you data for different time intervals ranging from 1 minute to 1 month. It gives data from 2005. By using the historical API, you create your trading strategies using different data from the past.

C. WebSocket API

This API will help you stay updated on orders, trades, and quotes for all instruments across various stock exchanges in India.

D. Tradebutton API

The Trade Button API is my personal favorite as it allows you to add a one-click button to apps and web pages to make your trading experience smoother.

9) Trading view

If you are trading from your desktop, then you might need some advanced tools, chats, and software to help you out, right? This is where Upstox X Trading View comes into the picture.

With this feature, you will be getting different types of charting tools that you can leverage to place and instantly modify your orders. It is backed with 104 indicators and 80+ drawing tools to help you create some patterns and your own graphs. All these tools are placed in one easy-to-use dashboard where you can track any open positions, closed positions, and your holdings.

Who can use Upstox?

1) Day traders

Day traders who are looking to buy and sell their shares within a day can use Upstox and make a decent amount of profit, provided that they have knowledge about trading. The cost-effective brokerage plan of Upstox makes them a popular choice among traders and investors. Traders who are using Upstox will also be getting loads of tools and advanced software to make their trades profitable. There are multiple charting and analytics tools available that you can use for your benefit.

The good part is that you can use Upstox trading accounts on both mobile applications and web platforms. The mobile app will give you the freedom to place your trade from anywhere and with a few taps.

2) Value investors

Value investors are those who believe in long-term investment and hold their shares or assent for the long term, so they can make money through compounding. On Upstox, there are more than shares of listed companies on the National Stock Exchange and the Bombay Stock Exchange. You can buy shares of these listed companies and hold them for the long term to make money.

3) Commodity traders

Those who want to invest in commodities like gold, silver, and crude oil can use Upstox to trade or invest in such commodities to make money. There are some awesome commodity trading features that come along with Upstox, which include a commodity trading dashboard, margin for commodity options, buying and selling orders, and most importantly, live news from domestic as well as global commodity markets, so that you can do research and invest wisely.

4) Mutual fund investors

If you don’t know anything about shares, stocks, commodities, or trading, then you start your SIP in mutual funds, which are yet another way of saving some good money. You can start your SIP with Upstox with a minimum of Rs 100 per month and select from a wide range of mutual funds that are available. You can set advanced filters to sort mutual funds by fund house, categories, risk, lock-in period, minimum investment required, and fund plan.

Investing in mutual funds via Upstox is 100% safe and secure, as mutual fund companies are regulated by SEBI [Securities Exchange Board of India], which is a governing body.

5) Beginners

Upstox is a user-friendly stock trading app ideal for beginners. To get started, download the app, complete the KYC process, and link your bank account. Use the watchlist feature to track stocks of interest and research them. Execute trades by selecting the stock, specifying the quantity, and choosing the order type (market, limit, or stop-loss). Utilize the charts and technical indicators for informed decisions. Always set a budget and a risk management strategy.

Upstox offers low brokerage fees and real-time market data, making it a great choice for new investors. Regularly educate yourself and practice with small investments to gain confidence and experience.

6) F and O traders

Option and futures traders can also use Upstox to make some decent money while investing. Although trading in F&O is daunting and complex, the ready-made option strategies by Upstox in NIFTY and BANK NIFTY maximize your profits. There is also a feature called Good Till Triggered Orders, by which you can place 3-leg conditional orders in one go. However, it comes with certain terms and conditions.

Besides, you can also use their margin trading facility to buy stocks with just 50% of funds and hold them for up to 365 days. Or gain additional leverage for F&O trading by pledging your Demat holdings.

What is Upstox Uplearn?

Now here comes my other favorite feature of Upstox, which is its own learning and unlearning portal about finance, trading, investment, stock market, trading, mutual funds, fundamental analysis, personal finance, trading strategies, futures and options, commodities trading, and so much more. The courses are taught by experts in their particular field with years of experience, so you learn from the best in India.

Moreover, all the courses listed on the Upstox website are free of charge. You don’t need to pay a single penny to enroll in the course and learn everything about your fiance. Plus, you also don’t need to have an Upstox account in order to enroll in the courses.

Even if you don’t know anything about the stock market or trading, you can still enroll in the courses and learn everything that you like from the beginning.

What are Upstox Brokega charges?

What is Upstox Refer and Earn?

Do you want to make money by affiliate marketing? If yes, then you can also earn cash rewards up to Rs 200 by referring Upstox to your friends and by promoting it. The best part about the Upstox referral program is that your earnings will be sent directly to your bank account. Upstox does not give you can bonus card or reward points, they give you hard cash directly into your bank account.

You will get your referral amount when someone successfully opens an Upstox account within 7 days after clicking on your affiliate link. A person also has to complete the entire KYC by submitting all the necessary and relevant documents.

What is Upstox Bug Bounty?

If you are a great engineer or an ethical hacker, then you can also earn money online with the Upstox bug bounty program. All you need to do is find a bug on the Upstox platform, mobile or web, report vulnerabilities or data breaches found, and get the reward.

Calculators

Upstox also has various types of calculators to help you determine your SIP, mutual fund returns, brokerage charges, NPV calculator, FV calculator, and so much more. All these calculators are free of charge, and you can use them either via the Upstox app or the Upstox web platform.

FAQs About What is Uptox and How Does It Work?