With the evolution of technology, trading has also changed to a major extent. In earlier times, when the smartphones did not exist and there were not so many applications as are present today, people used to reach out to brokers to do trading. During those times, the brokers were known to not only trade on behalf of their clients but were also responsible for activities such as report and wealth administration of the client.
Upstox Review 2020
However, times changed and technology evolved and it helped brokers to reduce their operating cost and as a result, they pass it down to their customers. Such brokers were known as ‘discount brokers’ due to the fact that they offered low brokerage charges. Contrary to full-service brokers, the services you get from such brokers are restricted to trading and if you are looking for such options, one of the popular discount broker these days is ‘Upstox’.
‘Upstox’ was set up in 2011, was founded by three young men and was earlier known as RKSV. It is supported by a group of investors and offers trading of stocks, currencies, futures, options, and commodities on all the recognized Indian stock exchanges that include BSE, NSE, MCX, and MCX-SX.
Upstox has an easy account opening procedure with a flat trading cost of ₹20 and this made it a popular option. It helped its clients trade across domains of equity, derivatives, and currencies.
There are two types of trading account that will suit the needs of investors and traders as offered by Upstox:
In the Basic plan, you get
- Brokerage Free equity delivery
- ₹20 per trade for Equity F&O,
- Commodity and Currency
This plan provides basic trading features through mobile as well as website and doesn’t charge any brokerage for trading in the Equity Delivery segment. It also gives up to 20x leverage on the Cash segment.
Upstox Priority Pack
In the Upstox pro pack, you get
- ₹0 equity delivery brokerage
- flat ₹30 per trade for Equity F&O,
- Commodity and Currency
This trading platform is for frequent traders who trade in Indra-day and F&O segments and offers up to 25x leverage on the Cash segment. It includes the features offered by Upstox Basic Plan and apart from that, you get features such as stock search, trade, monitor stocks, currencies, F&O, and commodities. For technical analysis, Upstox Pro provides advanced charting for professional traders including a wide range of indicators, chart types, and data-rich user interface.
The charges for Demat transaction – Pledge Charges Creation / Closure is 0.02% of transaction/minimum of ₹50 + NSDL/CDSL charges at actual, to check the charges you can do NSDL login.
Advantages and Disadvantages of Upstox
Upstox provides services over three different platforms. They are a. Most of all the services are accessible through these platforms.
Mainly, Upstox offers its services over three platforms and that is the Upstox Pro Web platform for desktop users, Upstox Pro App for mobile users, in addition to a decent desktop software known as Upstox Pro NEST Trader.
Before opening an account with Upstox, it is important to be aware of its advantages and disadvantages so that you can know if it will fulfill your investment needs.
The following are the advantages of Upstox:
- Upstox provides brokerage free trading in the Equity segment, hence customers do not have to pay any brokerage for delivery trades in this segment.
- For both Android and iOS devices, mobile apps are available and you don’t have to pay any charges to use it.
- After Market Order (AMO), Cover Order, and Bracket Order(BO) or One cancels Other (OCO) orders can be accessed on both web and mobile devices.
- Trailing-Stop/Stop-Loss (SL) is also accessible on both mobile and web.
- The Pro plan offered by Upstox offers several indicators to monitor markets whenever you want.
- Using Upstox Bridge for AmiBroker, you can code & execute your trading strategy with the help of AmiBroker AFL editor.
- Upstox Option Chain Tool helps a trader in finding out Spot, Future prices, vertical comparison of rates, and also extract details such as Open High Low Close and market depth.
- It lets its clients measure volatility, and offers Interest, and performance indicators.
- It also offers 1000’s of Mutual Funds to choose from while investing and you can choose the pattern of investing out of Lumpsum or SIP.
- Customers interested in higher leverage can go for Priority Brokerage Package.
- It also provides Online IPO Application (UPI).
- You can also use its margin calculator that is similar to the Zerodha margin calculator.
- In collaboration with IndusInd bank, Upstox has started offering the facility of a 3-in-1 account where the clients and the customers can take benefit of three services of savings account, Demat account services as well as trading services.
Now have a look at the cons offered by Upstox.
- In the equity segment, Good Till Cancelled (GTC) and Good Till Date/Time (GTD) Orders are not there and are available in commodity trading.
- On delivery trades, there is no Margin Funding. Also, if you are looking for Higher leverage, it is only available in the Upstox Priority Pack account.
- It doesn’t have unlimited monthly trading plans.
- Additional ₹20 per executed order (₹20 Brokerage + ₹20 Call & Trade Fee is levied.
- ₹20 per executed order is additionally charged for Intraday square MIS/BO/CO orders.
- You get Brokerage free trading only in Equity Delivery segment of the Basic plan. Apart from that segment, for all other segments, the brokerage is charged at ₹20 or lower per trade.
- Brokerage is free in the basic plan offered by Upstox but you will still be required to pay the Demat Transaction Charges.
- Its Demat debit transaction charges are higher than other discount brokers such as the Zerodha margin.
- You don’t get 24 hours of customer service with Upstox.
- There are no stock tips or recommendations provided.
This was the Upstox review of 2020 where you got to know both the pros and cons of this discount broker and can easily decide whether to go for it or not. Just like other app-based discount brokers, Upstox has its share of positives and negatives and it doesn’t offer additional services like forex or insurance.