Trading CDS with Upstox? Think again.
This article is not for you if you have blind faith in Upstox and are motivated by so many youtubers, twiterratis, instagrammers, facebookians, quorans, and bloggers advocating opening an account with Upstox. This article was written to highlight the flaws in Upstox’s system for trading currency derivatives. This article is based on my personal trading experience with Upstox.
No Market Order For option selling/buying
When you place a market order for writing currency options then it is rejected. It is quite strange and on enquiring with the customer care they gave me illogical excuse that it has been done to ensure risk management. In this market people are aware and knowledgeable about the risks they are taking in the market so I do not think there is any sense in not allowing the Market orders. At times you might want to take the benefit of the certain market situations where you need to quickly execute the trade at market. But with a limit order the system will only create problems for the brokers. Well the traders should be given the choice which type of order they want to place. I am quite sure in internet age traders are much aware of pros and cons of each order type.
No Margin against Shares
While SEBI has come out with peak margin rule that does not mean there is no scope for keeping your shares as collaterals and when all the brokers are offering this service Upstox is the only broker which is not offering this service.
No Details of Option Premium to be credited/debited
It’s surprising that their Cash/Funds details don’t show the premium to be received or to be paid after the trade is executed. While all brokers display the amount of premium receivable when writing options, Upstox does not. Similarly, the amount of premium that must be paid in the event that a trade fails cannot be determined on the Upstox platform. Just to remind you, knowing how much premium a trader must pay in the event of a trade going wrong allows them to make adjustments. You won’t find any section in the trading portal showing Premium receivable/deliverable or simply anything detailing about the premium.
Poor Customer Service
I fully agree that the situation of Covid has dramatically transformed most of the culture of work into work from home, but it is also true that a number of brokers performed well in Covid and were very careful about their customers. That’s quite contrary to Upstox. It was found on several occasions that queries were resolved in 2 months. Most queries will be resolved or sometimes updates will be given after 1–2 months or longer.
No separate plans for CDS
Unlike some brokers, such as SASOnline, they do not offer any CDS-specific plans. SASOnline, in my opinion, is a far better option for currency traders. They have a 499 monthly plan, and their customer service is far superior to that of Upstox. Why should I pay more brokerage for a subpar service and trading system?
You can also join SASonline by clicking on this referral link
Disclaimer : The above link is a affiliate marketing link and if you join the broker through this link then I may get small percentage of commission on the trades you place with the broker.
Conclusion
If you are an active currency trader looking for better service, you should rely on a broker with an efficient customer service and ordering system. You should not rely on marketing and the lavish sponsorships that these brokers provide to unrelated businesses. After all, it’s your money at stake, and all of the marketing and sponsorships are funded by the brokerage you’re giving to these brokers.
