What are disadvantages of Opening Demat and Trading account with Upstox?
- Asked By
- Updated On:31-Dec-2020
- Replies:1
Short Answer
With every stockbroker, there are some advantages and disadvantages. The cons of Upstox are plenty but covers up through its advantages. However, its disadvantages are that the trade and call feature is charged 20 rupees, IPO & FPO investment opportunities are not available, under the delivery segment, GTC & GTD orders aren’t supported, etc.
Detailed Answer
Upstox is a discount stock broker based out of Mumbai that offers free equity delivery services with generous margins and low brokerage charges. However, no matter how beneficial they might look with all stock brokers, some definitive cons or disadvantages come with it. Some might be negligible, while others are prominent.
For those who are willing fester upon them, and then decide whether or not Upstox is the stock broker for you? Then we have explained them in great detail and illustrated it below.
Disadvantages of Opening a Demat & Trading account with Upstox
- Traders and investors looking to invest in Bonds, IPO, NCD, and FPO cannot do so through Upstox. They don’t provide such features and don’t have the provisions as well.
- For NRI’s that are looking to invest through the stock broker, the platform can’t continue using their Demat accounts as they stopped offering the service back in January 2018.
- There is a 20 rupees flat fee charged on trade & call options for every executed order.
- At any point in time, if users face any difficulty, round the clock assistance isn’t provided. You will have to wait quite some time before you avail them.
- Despite having a standard and pro plans, their plans don’t provide unlimited trades to be executed with a minimum brokerage fee. It's standard for all.
- Users using Upstox don’t receive any insightful tips, advice, or even pointers to guide new users into making their investments.
- Good till cancelled (GTC) and good till date (GTD) orders are only available for users trading in the commodity segments. If you want similar features for the equity segment, they aren’t available.
- Despite having their basic plan free, the debit charged in Demat transaction charges are 21.83 rupees. It’s relatively high when compared to other stock brokers who charge only 15.93 rupees.
- If users fail to square off their trades, then an additional 20 rupees is charged for intraday squaring off for the segments of BO, MIS and CO.
- No doubt, the stock broker might be popular all thanks to its free equity delivery feature. however, for trades executed in equity F&O, currency derivative, F&O are charged 20 rupees or a per cent of the trade, whichever is lower.
- There is no API to log traders.
- There are no physical offices that you can go to if you have any queries. The only office is located in Mumbai and primarily works online.
- Upstox offers no margin funding.
- Upstox doesn’t provide any relationship manager in assisting you in your trading ventures.
Moreover, the disadvantages vary from one person to another. While it might be a generic disagreement about the stock broker into what they have to offer, some disadvantages might be useful for a few traders and investors.
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Discussion (0)
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