Before opening your Demat account with India's top discount broker, if you are concerned about safety of your investment portfolio then, in this post, I will take you through some of the key points to assure you that you are opening your Demat account with one of trustworthy stock brokers of India.
Statistics like over 90 Lakhs client base and 15-percent retail daily trading volume are enough to prove that Zerodha is a safe trading platform.
It is registered with Securities and Exchange Board of India (just like Reserve Bank of India who regulates banking sector of India, SEBI regulates stock market of the country) and all major stock exchanges of India including NSE and BSE. You can check all of its registrations directly on Zerodha official website and also you can cross check these registrations by visiting concerned authorities websites.
So, short answer of the title is, Yes, Zerodha is safe for long term investment because it is a registered SEBI firm with registration no.: INZ000031633.
And apart from that Zerodha is an active member of National Stock Exchange and Bombay Stock Exchange. Not limited to this, Zerodha trading platform has following registrations and affiliations:
| Zerodha SEBI Registration | Registration Number |
|---|---|
| Member of NSE & BSE | INZ000031633 |
| CDSL: Depository services through Zerodha Broking Ltd. | IN-DP-431-2019 |
| Commodity Trading through Zerodha Commodities Pvt. Ltd. MCX: 46025 | INZ000038238 |
| Registered Address | Zerodha Broking Ltd., #153/154, 4th Cross, Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bengaluru - 560078, Karnataka, India |
| Email for complaints pertaining to DP related | dp@zerodha.com |
| Email for complaints pertaining to securities broking | complaints@zerodha.com |
| Zerodha customer care number | 080-47181888 |
Note: Above mentioned registration numbers are subject to cancellation therefore you are advised to cross check them by visiting concerned authorities websites.
Is Zerodha Safe?
Highs
- SEBI Registered
- 90 Lakhs clients
- Over 15-percent huge retail trading volume on daily basis
- Very advanced and quick trading platform
- Competitive brokerage charges; flat ₹20 for trading and 0 for equity delivery and Mutual Funds
- Our rating: 4.5 out of 5.
Lows
- Most of the times, Option Buyers cannot make carry forward positions in out-of-the-money options
Before answering the question, I would like to ask you how do you decide a bank is safe or not?
If I am not wrong then first of all, you check whether bank has obtained banking license from Reserve Bank of India or not. Now many banks have RBI license but still you do not wish to open your account with a specific registered bank. Instead, to open your bank account, you see how reputed bank is, its customer service, facilities it offers and customer base.
Whatever bank passes your eligibility criteria, you go with that. At the same time, you are still aware that despite all the things, your bank may bankrupt. But you are assured because you opened your account with a bank whose chances of bankruptcy are very less.
So, in the same way, you must know that no matter with what stock broker you are opening your Demat account, your funds at risk. So you always go with safest options.
Thanks to SEBI which is performing its watchdog authority job nicely. The authority takes each and every possible measure to safeguard investors portfolios and makes sure that no broker can fraud clients.
Now let me tell you briefly that whether Zerodha is safe for long term investment or not.
In my opinion, Zerodha is completely safe choice when it comes to investment and trading. It fulfills all eligibility criteria to become your trading platform.
In the next part of the content, we are going to test Zerodha (just like I have mentioned how we choose a bank for our savings account):
- Nithin Kamath, The Founder and CEO of Zerodha: Zerodha is founded in the year of 2010 by Nithin Kamath. If you would see his Twitter timeline then you can easily find that Mr. Nithin Kamath is not a money-oriented person. He knows majority of his clients are from retail category and it is the category who usually fails to make money in stock market due to its impulsive behavior. Therefore he always tries to educate his clients through tweets. His timeline is flooded with investor education content and timely warnings may help you make a good decision. He mostly uses his timeline to educate investors than promoting Zerodha; which I really appreciate.
- Zerodha is SEBI registered: Just like banks require RBI license to perform banking operations in India, all stock brokers must have SEBI registration if they would like to provide investment and trading like facilities in the country. Zerodha is registered with SEBI and as mentioned in the table above its registration number is INZ000031633. You can visit official SEBI website to verify the same.
- Reputation: 9+ million clients make Zerodha top discount broker of India. In 2010, Zerodha came into existence and within this short period of time, it has become No.1 discount broker who contributes over 15-percent daily retail volume which is huge.
- Zerodha Trading Facilities: Zerodha gives you access to almost all investment segments available to trade in the country, be it stock, future and options, gold, mutual funds, IPO, FPO, currency, commodities, you name it and Zerodha has it. It provides in depth data along with buy sell investor bias reflector for all stocks so you can make right investment decision. It provides you access to company's data sheets balance sheets and more for free. You can open Zerodha account in just 15 minutes.
- Trading Platform: Zerodha trading platform is super quick and very user friendly. They did not make it messy. Trading dashboard is nicely designed which shows essential options required for trading. I found on my trading platforms that for newbie traders it is very difficult to place buy sell orders. But you will not face such issues in Zerodha. You can watch review video for more details.
After reading this post, I am sure you would not ask again, "Is Zerodha safe?" I would really appreciate if you could open your Zerodha account using by clicking on the above link.
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