Upstox Review 2024: Is It Safe and Reliable for Indian Traders?

Available Asset Classes

Upstox offers several asset categories, giving users the flexibility to invest or trade across multiple options.

• Stocks: Users can trade a wide variety of Indian equities, including both large-cap and mid-cap stocks listed on major stock exchanges (BSE and NSE). This range enables traders to invest in India’s top companies and emerging businesses.
• Exchange-Traded Funds (ETFs): ETFs on Upstox allow users to invest in a diversified basket of securities within a single trade. This is a cost-effective option for those who want to invest in a specific market index or sector without selecting individual stocks.
• Mutual Funds: Upstox offers direct mutual fund investments with zero brokerage fees, making it an accessible choice for long-term investors. Mutual funds are professionally managed portfolios of stocks, bonds, or other securities, ideal for users looking for diversified and passive investment options.
• Commodities: Traders on Upstox can also access commodities like gold and silver. Commodities are a popular choice for those interested in diversifying their portfolios beyond traditional securities.

Margin Trading and Leverage

Margin trading on Upstox allows users to increase their trading capital by borrowing funds, which can potentially enhance returns. Here’s how margin trading and leverage work on Upstox:

• Margin Trading Overview: Upstox provides margin trading options that allow users to borrow funds to make larger trades than they could with their available capital. This strategy can be useful for intraday and short-term traders looking to capitalize on market movements.
• Leverage Options: Upstox offers different leverage ratios depending on the asset type (such as stocks or commodities). Users can trade with a multiple of their capital, amplifying both potential gains and risks. For instance, leverage might be set at 3x or 5x for certain equities, meaning traders can trade with three or five times their invested amount.
• Risk Analysis: While margin trading can increase potential profits, it also comes with significant risks. Losses may exceed the initial investment due to the borrowed capital, making it essential for users to manage their risk carefully. Traders are encouraged to use leverage cautiously and fully understand the terms before engaging in margin trading.

Note: Margin trading is best suited for experienced traders who understand the associated risks. Beginners may want to consider alternative strategies to start.

Setting Up Systematic Investment Plans (SIPs)

Systematic Investment Plans (SIPs) offer a disciplined approach to investing in mutual funds, ideal for users who want to invest consistently over time.

• SIP Setup: Upstox simplifies the process of setting up a SIP. Users can choose a mutual fund, set an investment amount, and schedule regular contributions (monthly, quarterly, etc.) to automate their investments. This hands-off approach makes it easy to build wealth gradually without actively managing trades.
• Benefits of SIPs: SIPs offer benefits like rupee cost averaging, which helps reduce the impact of market volatility by spreading investments over time. Additionally, compounding can lead to substantial returns over the long term, especially when investing in high-quality mutual funds.

Tip: SIPs are a practical choice for users focused on long-term wealth-building with minimal day-to-day involvement.

Summary of Key Product Features

Brokerage Fees

Upstox’s brokerage fees are designed to minimize trading costs while maintaining simplicity. Here’s a detailed breakdown of the charges by asset type:.

• Equity Delivery: ₹0 (zero brokerage) – This makes Upstox particularly attractive for long-term investors who buy and hold stocks, as there are no recurring fees on delivery trades.
• Equity Intraday: ₹20 per executed order or 0.05% of the order value, whichever is lower – This predictable flat fee structure benefits frequent traders, allowing them to plan their expenses.
• Equity Futures: ₹20 per executed order or 0.05% of the order value, whichever is lower – Perfect for traders who deal in futures contracts.
• Equity Options: Flat ₹20 per executed order – A low-cost alternative for options trading, ensuring affordability even for small-volume traders.
• Currency Futures and Options: ₹20 per executed order or 0.05% of the order value for futures; flat ₹20 per order for options.
• Commodity Futures: ₹20 per executed order or 0.05% of the order value, whichever is lower – A cost-effective choice for investors diversifying into commodities.
• Mutual Funds & IPOs: ₹0 (zero brokerage) – Free mutual fund investments and IPO applications are ideal for long-term wealth-building.

Why It Matters: This simple, flat-fee structure helps traders of all experience levels predict and control their trading costs. For example:

• Frequent Intraday Trader Example: A trader executing 200 intraday trades in a month pays just ₹4,000 in brokerage, which is among the lowest in the industry.
• Equity Investor Example: A ₹10 lakh investment in delivery trades incurs no brokerage costs, saving substantial amounts over time compared to brokers with percentage-based fees.

Hidden Charges and Other Costs

Although Upstox is transparent about brokerage fees, additional costs are standard in the trading industry. Here are the key hidden charges to keep in mind:

1. GST (Goods and Services Tax):
   • 18% on brokerage fees, transaction charges, and SEBI charges.
   • For instance, a ₹20 brokerage fee for an intraday trade incurs ₹3.6 GST, making the effective cost ₹23.6.
2. Securities Transaction Tax (STT) / Commodity Transaction Tax (CTT):
   • Equity Delivery: 0.1% on both buy and sell transactions.
   • Equity Intraday: 0.025% on the sell side only.
   • Currency Trading: No STT or CTT fees, making it attractive for currency traders.
3. Transaction Charges:
   • NSE imposes 0.00322% per trade on equity delivery.
   • BSE charges 0.00300% per trade.
4. Depository Participant (DP) Charges:
   • ₹13.5 per scrip (share) for processing Demat account transactions when selling shares, plus applicable GST.

Real-World Impact Example: For a trader selling ₹1 lakh worth of shares:

• STT: Adds ₹100.
• DP Charges: Adds ₹13.5 + GST (₹15.93).
• Transaction Charges: Adds ~₹3.

These charges, while standard across the industry, emphasize the importance of understanding the total trading cost.

Fee Comparison with Competitors

Upstox’s flat-fee structure compares favorably with competitors, offering cost-effective trading across asset classes:

Web Platform: Advanced Tools for Comprehensive Analysis

The Upstox web platform is ideal for traders seeking in-depth market analysis and efficient portfolio management. Key features include:

Trading Efficiency

• Customizable Watchlists: Create personalized lists to monitor preferred stocks and assets. This feature ensures that users can focus on their chosen securities without navigating through the entire market.
• Real-Time Market Data: Access live updates for informed decision-making. Timely data helps traders react to price movements and market trends with precision.
• Advanced Order Types: Use market, limit, and stop orders to suit your trading strategies. These flexible options allow traders to execute their strategies effectively while managing risk.

Powerful Analytics

• Interactive Charts: Over 100 indicators and 50+ drawing tools enable technical analysis. Traders can identify patterns, trends, and potential opportunities with professional-grade charting tools.
• Multiple Timeframes: View short-term and long-term price movements for deeper insights. This versatility helps users plan intraday trades or long-term investments.
• Customizable Layouts: Save and switch between chart layouts effortlessly. This feature speeds up analysis by providing quick access to frequently used setups.

Portfolio Insights

• Clear Holdings View: Centralized dashboard displays all investments at a glance. Users can track their portfolio performance in real-time without switching between multiple views.
• Profit/Loss Statements: Detailed reports help evaluate trading performance. These insights assist traders in identifying profitable strategies and areas for improvement.
• Transaction Histories: Access comprehensive records for improved decision-making. Reviewing past trades helps traders refine strategies and avoid repeated mistakes.

Mobile App: Flexible Trading on the Go

The Upstox Pro mobile app is tailored for traders who value speed and convenience. Its streamlined design and responsive features make it a go-to for real-time trading.

User-Friendly Interface

• Dashboard: The main dashboard displays watchlists, account details, and market data. This centralized layout ensures users can access essential tools and information quickly without navigating multiple menus.
• One-Tap Order Placement: Execute buy/sell orders with just one tap. This feature is particularly useful for intraday traders who need to act fast during market fluctuations.
• Search and Filter Options: Easily find specific stocks, funds, or assets using intuitive search and filter functions. This saves time and helps traders focus on relevant securities.

Key Features

• Interactive Charts: Access various indicators like RSI, MACD, and moving averages for technical analysis. While simpler than desktop charts, they provide sufficient flexibility for on-the-go evaluations.
• Customizable Alerts: Set notifications for price changes, order executions, and key updates. This feature ensures traders never miss critical market events, even when away from their desks.
• Smartlists and Heatmaps: Identify trending stocks and analyze market sectors visually. Heatmaps offer an at-a-glance overview of market performance across sectors, aiding decision-making.

Unique Tools

• Voice Commands: Use voice prompts to execute trades or access features hands-free. This innovative tool is ideal for busy traders who want to multitask efficiently.
• Integration with TradingView: Access advanced charting and analysis tools directly within the app. This feature brings professional-grade analytics to mobile trading, bridging the gap with desktop platforms.

Performance and Responsiveness

• Real-Time Market Data: Receive live updates on stock prices, indices, and other assets. This ensures traders can make informed decisions without delays.
• Frequent Updates: Regular app updates enhance stability and add new features based on user feedback. These updates help maintain a seamless trading experience during peak hours.

Web vs. Mobile: Which Platform Suits Your Needs?

Choosing the Right Platform

• Use the web platform for in-depth research and multi-asset portfolio tracking.
• Opt for the mobile app for speed and real-time updates during fast-paced trading sessions.

Steps to Open an Upstox Account

1. Visit the Upstox Website or Download the App: Access the official Upstox website or download the Upstox Pro app to begin the process.
2. Sign Up:
   • For trading accounts, click "Sign Up" on the homepage.
   • For demat accounts, select "Open a Demat Account" from the top menu.
3. Register with Your Mobile Number: Verify your number with an OTP and set a secure 6-digit PIN for future logins.
4. Email Verification: Add your email address and confirm it using the OTP sent to your inbox.
5. Provide Personal Details: Enter your name, date of birth, and other required information, ensuring accuracy.
6. Add PAN and Aadhaar Details:
   • Enter PAN for identity verification.
   • Link Aadhaar through Digilocker for address verification.
7. E-Signature: Upload or draw your signature, matching it with the one on your PAN card for smooth verification.
8. Live Photo Verification: Complete the live photo step for identity confirmation.
9. Link Bank Account: Connect your bank account for seamless deposits and withdrawals.
10. Choose Trading Preferences: Select asset types (e.g., equities, F&O, commodities) to personalize your account.
11. Final Verification: Verify using Aadhaar, agree to terms and conditions, and submit your application.

KYC and Verification

To comply with regulatory requirements and ensure account security, Upstox mandates a streamlined KYC (Know Your Customer) process. This process is fully digital, ensuring a quick and hassle-free experience for users. Below are the documents required and their purposes:

• PAN Card: This is essential for verifying your identity and linking your account with your tax records. During registration, simply input your PAN number.
• Aadhaar Card: Used for address verification and linking your Upstox account with Digilocker for seamless integration. Upload your Aadhaar details and complete Aadhaar-based OTP verification.
• Income Proof (for F&O and Commodities): This is mandatory if you plan to trade in Futures & Options or commodities, as it validates your financial eligibility. Acceptable documents include salary slips, income tax returns (ITR), or a bank statement showing income.
• Bank Proof: Ensures the bank account linked to Upstox is valid and active for deposits and withdrawals. You can submit a cancelled cheque, passbook copy, or recent bank statement.

Account Types and Demo Accounts

Upstox offers multiple account types to cater to various trading needs, ensuring flexibility for both beginners and experienced traders. Additionally, its demo accounts provide a safe environment for users to practice and learn.

Types of Accounts

1. Equity Trading Account: This account allows users to trade in stocks, ETFs, and equity derivatives listed on major exchanges like NSE and BSE. It’s ideal for investors focused on building long-term portfolios or those aiming to diversify through equities and ETFs.
2. Commodity Trading Account: With a commodity trading account, users can trade in metals (like gold and silver), energy products (like crude oil), and agricultural commodities. This account is perfect for traders looking to hedge risks or diversify their investments beyond traditional securities.
3. Futures & Options (F&O) Account: Designed for advanced traders, this account type allows users to participate in derivatives trading, leveraging their capital for potentially higher returns. While it offers the advantage of amplifying profits, it also comes with higher risks, making it suitable for those with experience in managing leveraged positions.

Demo Accounts

For beginners or those new to trading, Upstox offers a demo account that provides a risk-free environment to learn and practice.

• Practice Trading: Users can test strategies and observe market dynamics without risking real money. This hands-on approach helps traders understand how markets operate and refine their techniques.
• Platform Familiarization: The demo account replicates the Upstox platform’s functionalities, allowing users to explore features like order placement, portfolio tracking, and charting tools. This ensures users are comfortable with the platform before transitioning to live trading.
• Simulated Market Conditions: Demo accounts simulate real-time market conditions, giving users a realistic experience of trading scenarios.

Key Benefits of Demo Accounts

• Build confidence by experimenting with strategies in a safe, controlled environment.
• Gain familiarity with platform tools, ensuring a smooth transition to live trading.
• Ideal for testing trading styles, whether for intraday trading or long-term investments.

Deposit Options

Upstox supports several deposit methods, giving users flexibility to choose the option that works best for their preferences and transaction sizes. Below is an overview of the available methods:

How to Deposit Funds?

Adding funds to your Upstox account is quick and user-friendly. Follow these steps to deposit funds:

1. Log In: Access your account via the website or app.
2. Go to the "Funds" Tab: Click "Add Funds."
3. Select Deposit Method: Choose from:
   • UPI (instant, ideal for small-to-moderate amounts).
   • NetBanking (instant, supports larger transfers).
   • IMPS/NEFT/RTGS (instant or within banking hours for higher amounts).
   • Cheque Deposit (2–3 business days for processing).
4. Enter Deposit Amount: Specify the amount and confirm the transfer.

Key Benefits of Deposits

• Multiple Options: UPI for quick transfers; NetBanking and NEFT/RTGS for larger transactions.
• No Minimum Requirement: Start trading with any amount that suits you.
• Fee-Free Transfers: Upstox doesn’t charge for deposits, though some banks may apply nominal fees.

Withdrawal Options

Upstox provides two withdrawal options designed to cater to different user requirements:

How to Withdraw Funds?

Withdrawing funds from Upstox is simple and secure. Follow these steps to initiate a withdrawal:

1. Log In: Access your account via the website or app.
2. Go to the "Funds" Tab: Locate and click "Withdraw Funds."
3. Choose Withdrawal Type: Select either:
   • Instant Withdrawal (credits within 15 minutes, ₹100–₹2 lakhs limit).
   • Standard Withdrawal (processed the same day if requested before 8:00 AM).
4. Enter Amount: Specify the amount, ensuring it matches your available balance.
5. Confirm Transaction: Review details and complete the process with two-factor authentication (2FA) for added security.

Key Benefits of Withdrawals

• Secure Transactions: Withdrawals are processed only to verified, linked bank accounts, protected by 2FA.
• Flexible Options: Choose instant withdrawals for urgent needs or standard withdrawals for larger sums with no daily cap.
• Convenience: The intuitive interface and fast processing times make managing funds hassle-free.

Common Issues and Solutions

While Upstox strives to provide a smooth experience, users may occasionally encounter issues. Below are common challenges and how to resolve them:

Support Channels

Upstox offers various ways for users to access support, ensuring assistance is readily available:

• Live Chat: Available via the support portal for real-time assistance.
• Ticket Submission: For detailed issues, users can submit a support ticket and receive email responses.
• Knowledge Base: A comprehensive FAQ section covers common queries, such as managing portfolios, troubleshooting issues, and updating account settings.
• Customer Care Number: Call 022-41792999 for urgent inquiries.
• Email Support: For in-depth concerns, reach Upstox at support@upstox.com.
• In-Person Assistance: Visit the Upstox office at Sunshine Tower, Mumbai, for direct help when needed.

These options provide flexibility, catering to users who prefer immediate help or detailed assistance for complex issues.

Comparison Table: Key Features

How Does Upstox Compare?

1. Zerodha: This platform is ideal for traders who prioritize advanced charting tools and educational resources. However, the higher AMC and lack of API support may not appeal to algorithmic traders or those looking for cost efficiency.
2. Groww: Known for its simple design, this option is great for beginners due to its ease of use. However, it lacks advanced tools and API features, which makes it less suitable for professional or experienced traders seeking customization.
3. Angel One: Angel One offers comprehensive advisory services, SmartAPI for algorithmic trading, and a wealth of educational content. While these features cater to traders who want in-depth support, its higher AMC and complex platform may deter beginners looking for simplicity.
4. Upstox: This platform strikes a balance between affordability and usability. Its API support caters to tech-savvy traders, while its charting tools, though not as advanced as Zerodha’s, meet the needs of most users. Although research tools are basic compared to Angel One, the low fees and simple interface make it a great choice for both novice and experienced investors.

Why It Stands Out?

This trading platform combines low costs, user-friendly design, and flexibility. With zero brokerage on equity delivery, flat fees for intraday trades, and robust API support, it’s an excellent choice for budget-conscious and tech-savvy users. Its intuitive interface ensures accessibility, while regular updates work to improve app stability and customer support.