Nuvama (Edelweiss) - Safe, Reliable & Trustworthy Broker

Nuvama Wealth and Investment Limited is a trusted name in the stock broking industry as it is a part of Edelweiss Group, a leading diversified financial services company, low client to complaint ratio, no major regulatory violations and strong footprint across India.

Nuvama Wealth and Investment Limited is a Mumbai-based full-service stock broking company. It serves over 1.3 lakh active clients providing them trading and investment services in Equity, Currency, Commodities, Futures & Options, Mutual Funds and IPOs etc.

Nuvama is a SEBI registered broker and is a member of NSE, BSE and MCX. The company's transactions are regularly audited by SEBI and stock exchanges. In addition to that, its parent company being a listed company is rigorously audited and is answerable to its shareholders, investors and Board of Directors.

About Nuvama Wealth

The following are key facts you should know about Nuvama Wealth. The data is as of May 03, 2020:

• Part of Edelweiss Group.
• Full-service broker offering a wide range of brokerage plans.
• The discount brokerage plan offers trading at flat Rs 10 per executed order brokerage across the trading segments.
• Free research, trading tips, and recommendations.
• Excellent mobile application, website & desktop trading software for trading.
• Pan India presence through branches and franchises.
• Offers Relationship managers and add-on services like PMS.

Why Nuvama Wealth is safer than other brokers?

1. Strong Parent Company

   Nuvama Wealth is a part of Edelweiss Group, a publicly-traded company that has been in the business for 25+ years. The publicly-traded companies are regularly monitored by various regulators and their books are open for scrutiny. They have to announce all major business decisions and publish their financial details as per the guidelines. Also, listed companies stress on good corporate governance, quality of the management and fair business practices as these are key factors for the performance of the stock in the market.

2. Vision Of The Management

   The stock brokerage space was disrupted with the arrival of discount stock brokers like Zerodha, Nuvama and Prostocks etc. These companies ate into the market space of traditional full-service brokers with attractive low brokerage plans. While some traditional brokers have continued to remain the same and are losing customers, others have adopted the discount brokerage model. The management of Nuvama Wealth responded uniquely to the disruption by offering flat brokerage (one of the most competitive brokerage plans) and excellent online trading platforms. However, they continued with traditional broking services like research, Relationship Managers and branch offices etc., and offer these services at additional cost to flat-fee plan customers who want to avail it and add to the company's revenues.

3. No client securities in the pooled account

   Nuvama Wealth doesn't keep customer securities in its own pooled account. Opening the demat account is mandatory/ Shares are instantly credited in the demat account once the trade is cleared.

4. Simple Pricing Model (Nuvama Lite)

   Nuvama offers a Lite plan which offers flat Rs 10 per trade brokerage across the segment and exchanges. This plan is very easy to understand. It removes surprises in the trading cost.

5. Technology-Focused Company

   Nuvama offers a hybrid business model where customers can trade online as well as by visiting the local office. The company has invested substantially in technology over the years. It has built excellent trading platforms and tools for the customers. With the traders going digital and online services being popular, the company's investments in technology make it future-ready.

6. Happy Customers

   As of May 2020, Nuvama has 1.30+ lakhs of active customers and over 30 lakhs or total customers.

7. Lower Complaints to Active Clients Ratio

   Nuvama's ratio of complaints to active clients is on the lowest side in comparison to other brokers.

Nuvama Risks

While Nuvama brokering is safe broker serving customer for over 25 years, there are few areas of concern a customer should aware of:

1. Edelweiss Group offers a range of business

   Nuvama is a large financial services provider with a range of products and services. Nuvama Wealth is a small part of Edelweiss Group. The businesses owned by the group have different risk profiles. Most of them fall in the higher risk category in comparison to the stock broking business. The scale of failure in one such business could impact its brokerage business also.

2. Margin Funding

   Nuvamaoffers margin funding to its customers. Margin funding is considered risky business for stockbrokers where a broker lends the money to traders for the short term.

   Other discount stock brokers like Zerodha and Upstox do not offer margin funding.

Nuvama Memberships

Nuvama is registered with SEBI and a member of leading stock exchanges like NSE, BSE, MCX and AMFI. Nuvama is also a DP (Depository Participant) with NSDL and CDSL.

Nuvama's various membership details are as follows:

• Nuvama Wealth and Investment Limited: SEBI Registration no.: INZ000005231
• NSDL: IN-DP-NSDL-314-2009
• AMFI Regn No: 70892

Conclusion

Nuvama Wealth is a safe and trusted stock broker in India. The company enjoys the trust of its customers due to its strong brand, the vision of the management, quality services and its flexible brokerage plans. As a customer, you can rely on the company to be fair and adhere to all regulatory guidelines.

Must Read:

• 10 Steps to safeguard trading and Demat account

Frequently Asked Questions

Nuvama (Edelweiss) Competitors Review

Information on this page was last updated on Monday, February 13, 2023