Are Discount brokers safe?

Discount brokers offer no-frill stock broking accounts. They only provide the necessary trading facility at the least possible cost. Investors’ money is safe with them as well, for the simple reason that brokerage is highly regulated business. Discount brokers charge a much lower fee than fullservice brokers.

What happens to your shares when broker goes bust?

If your stock market broker goes bust in India, practically speaking, nothing happens to your stocks and shares. The stockbroking industry is very well under regulations and compliances laid down by SEBI. Unfortunately, the concern is your trading account and not your shares and stocks.

What happens if stockbroker goes bust Singapore?

If the brokerage goes bankrupt, your ownership of the shares will not be affected. Custodian account: The brokerage owns the stocks on your behalf, so the stocks are technically not in your name.

Can I buy shares from an online broker and keep them?

Technical yes but it’s not allowed by most if the online brokers. Brokers are not supposed to keep the shares in their pool account. Brokers transfer shares to your demat account as soon as they receive. The settlement cycle in India is T+2 which means shares will hit your demat account 2 working days after your purchase.

Is it possible to buy shares in a pool account?

Technical yes but it’s not allowed by most if the online brokers. Brokers are not supposed to keep the shares in their pool account. Brokers transfer shares to your demat account as soon as they receive.

Is it safe to invest in mutual funds from Zerodha?

It’s completely safe to invest in Mutual Funds from Zerodha. Zerodha or any stockbroker do not hold your investments, securities, or any other assets. You can just buy or sell shares, mutual funds, bonds, and other securities using the Zerodha discount broking account .

Is Zerodha A CDSL or a depository?

Zerodha is a depository participant with CDSL (Central Depository Services (India) Ltd). The CDSL depository holds your Demat account with Zerodha. All the securities remain in your Demat account with CDSL. It doesn’t have access to this account until you directly provide it.