The Indian stock market has witnessed massive participation over the last few years, and discount brokers have played a significant role in making trading affordable and accessible. Among them, Upstox has emerged as one of the leading players, competing directly with Zerodha, Groww, and 5Paisa.

Founded in 2009 (originally as RKSV Securities), Upstox has grown into one of India’s top brokers, with over 1 crore registered customers as of 2025. With backing from prominent investors like Ratan Tata, it offers trading in equities, derivatives, commodities, currencies, mutual funds, and IPOs — all through its powerful online platform.

But is Upstox the right platform for you? Let’s dive into the advantages and disadvantages of Upstox in detail so you can make an informed decision.

What is Upstox?

Upstox is a SEBI-registered discount broker offering online trading and investment services. Its low-cost structure, intuitive trading platforms, and innovative features have made it a popular choice among both beginners and experienced traders.

Upstox’s offerings include:

• Equities (delivery & intraday)
• Futures & Options (F&O)
• Commodities
• Currencies
• Mutual Funds
• Digital Gold & IPOs

It operates on a flat-fee discount model, making trading affordable without compromising on technology.

Advantages of Upstox

Here are the biggest reasons why traders and investors choose Upstox

1. Low Brokerage Charges

Upstox follows a transparent and affordable brokerage structure:

• Equity Delivery – ₹20/order or 2.5% of trade value (whichever is lower)
• Intraday & F&O – ₹20/order or 0.05% of trade value (whichever is lower)
• Equity Delivery in Priority Plan – Free (limited conditions apply)

This makes Upstox highly attractive for active traders who execute multiple trades daily.

2. User-Friendly Trading Platforms

Upstox offers Upstox Pro (Web & Mobile App) with advanced features such as:

• Real-time market data
• 100+ technical indicators
• TradingView & ChartIQ chart integration
• GTT (Good Till Triggered) orders
• Customizable watchlists

Its clean interface and smooth functionality make it beginner-friendly while still satisfying professional traders.

3. Free Mutual Fund Investments

Through Upstox, investors can buy direct mutual funds without paying commission charges. This allows long-term investors to save significantly on costs.

4. Fast Account Opening Process

Upstox provides a 100% paperless digital account opening experience using Aadhaar-based e-KYC. Most accounts get activated within 24–48 hours.

5. Advanced Features for Traders

Active traders benefit from several advanced tools:

• Margin Trading Facility (MTF) – Trade with leverage.
• Algo Trading API Access – For advanced traders and developers.
• Smart GTT Orders – Ideal for conditional orders.
• Option Chain with Strategy Builder – For F&O traders.

These features make Upstox stand out among new-age brokers.

6. Low Minimum Investment

Upstox allows users to start trading with small amounts. Even beginners can invest in fractional mutual funds or low-priced stocks, lowering entry barriers.

7. Investor-Friendly Initiatives

Upstox offers:

• Learning resources through blogs and tutorials.
• Free stock market courses for beginners.
• Investment in IPOs and digital gold directly via the app.

This makes it a one-stop shop for retail investors

8. Backed by Strong Investors

With backing from Ratan Tata and Tiger Global, Upstox enjoys strong financial stability and credibility, giving confidence to its users.

Disadvantages of Upstox

Despite its many strengths, Upstox also has certain drawbacks you should be aware of:

1. Brokerage is Not the Lowest

While Upstox charges ₹20/order (flat), some competitors like Zerodha (Free delivery) or Groww (Free delivery, ₹20 flat) offer cheaper or more competitive structures for delivery-based investors.

2. Account Opening Charges & AMC

Upstox charges:

• ₹200 for account opening (₹300 if commodity included)
• Annual Maintenance Charges (AMC): ₹150–₹300 per year

Some competitors waive these charges entirely, which makes Upstox slightly less cost-effective for beginners.

3. Customer Support Concerns

Many users have reported slow customer support response times, especially during high trading volumes. Queries may take longer to resolve compared to full-service brokers.

4. No Advisory or Research Reports

Upstox does not provide:

• Personalized stock tips
• Relationship managers
• In-depth research reports

This makes it less attractive for investors who rely on broker guidance and advisory services.

5. Occasional Platform Downtime

During market rush hours, IPO subscriptions, or budget days, users sometimes experience:

• App lags
• Order execution delays
• Login issues

While such issues are not daily, they can frustrate active traders.

6. No 3-in-1 Account Facility

Unlike ICICI Direct or HDFC Securities, Upstox does not offer a 3-in-1 account (Bank + Demat + Trading). Users must manually transfer funds between their bank and Upstox trading account.

7. Hidden Charges for Certain Services

While the brokerage is transparent, Upstox charges extra for:

• Call & Trade services (₹50/order)
• Physical contract notes
• Some fund transfer methods

These costs can add up for frequent traders.

Upstox Quick Advantages and Disadvantages Overview

Who Should Use Upstox?

Best For:

• Active traders looking for powerful features and low brokerage.
• DIY investors comfortable making their own trading decisions.
• F&O traders needing option chains and strategy tools.
• Long-term investors wanting direct mutual fund investments.

Not Ideal For:

• Beginners needing relationship managers or research advice.
• Investors preferring 3-in-1 bank-integrated accounts.
• Traders who can’t tolerate platform downtime during high volatility

Final Verdict

In 2025, Upstox is among the top three discount brokers in India. Its combination of low costs, robust trading platforms, and advanced features makes it a strong choice for self-directed traders and investors.

However, its lack of advisory services, occasional platform issues, and account-related charges may not suit absolute beginners or those seeking premium guidance.

👉 Verdict:

• ✅ Excellent for cost-conscious, tech-savvy investors and active traders.
• ❌ Not recommended for those needing full-service brokerage support or 3-in-1 banking integration