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Is Zerodha safe for the long term investment?

Zerodha Account Opening

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account online with Zerodha and start trading today.

Yes, Zerodha is as safe as any other stock broker in India. Zerodha is a genuine and trusted stock broker. They are among the lowest risk broker for the following reasons:

  • Zerodha is a debt-free 
  • Unlike other large brokers, Zerodha offers broking services only. Thus, they cannot be impacted by losses made in other businesses.
  • Not a single major violation reported in the last ten years.
  • Shares and Mutual Funds maintained in the Demat account held by CDSL.
  • The company follows open and transparent business practices.
  • Low client to complaint ratio.
  • No Margin Funding facility.
  • No Proprietary Trading.

While opening an account with the broker, a customer is generally concerned about the safety and security of their funds and stocks lying with the broker. However, Zerodha is safe from all the aspects in reference to the above.

Zerodha is a SEBI registered stock broker and a member of NSE and BSE. The broker has all the genuine certifications to conduct the broking business. The transactions of the broker get scrutinized by SEBI and stock exchanges at a regular frequency and are penalized heavily in case of any wrongdoings. Moreover, the broker does not do proprietory trading. Thus, there is no risk of client money getting used for other purposes. Zerodha being a member of the CDSL depository, the Demat account safety is taken by CDSL and the broker acts as a mere facilitator for the transfer of securities.

 

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2 Comments

2. Heman  Sep 10, 2020 21:55 I Like It. | Report Abuse Reply
I will not call it safe just because it does not have debt etc. or is registered with SEBI or RBI. As customer you still can not trust until every aspect of IT system is audited. I faced issue of sell of equity via GTT order and there was no intimation of placing such order. No display of such pending order in order book. There is different menu and customer will not check additional menu until one places order. No intimation of what order placed, which executed and which cancelled and which still open. Even TOTP can be compromised if IT system have backdoor. They will say transaction originated from your IP but as customer you have no mean to know what was your IP on given day. Even if you have, no one will give you entire network trace. Just storing IP in IT system is not good. Infact it is easy to make it difficult for customer to prove its not your IP transaction like GTT are created on same day of your buy/sell. CDSL have "EASIEST" which blocks broker from deducting equity. However broker use lame execute that they can not settle transaction. Why they can't just build system where customer will be taken to CDSL website to give authorization of sell or buy and same act as debit/credit for shares.
2.1. Ashutosh  Sep 16, 2020 22:24 I Like It. | Report Abuse
It's a good suggestion to make every transaction authorized by depository's website. But more importantly, all platform softwares and processes should undergo security audit by multiple Organizations of repute.
2.2. Venkateshpurohit  Jan 7, 2021 23:08 I Like It. | Report Abuse
I have not received my dmat opening details though I paid amount online pl verify
1. Rabindra Kumar behera  Dec 30, 2020 18:56 I Like It. | Report Abuse Reply
Account opening payment is debited but still I have not received my login id