Can online broker go bankrupt?

[hir0406]

Hello everyone,
I wanted to start trading in Indian equity and Commodities market but I have some doubts... Can any online broker can go bankrupt like Zerodha and if that happen then is my money safe with them???

 

[Obelixtrader]

Hello everyone,
I wanted to start trading in Indian equity and Commodities market but I have some doubts... Can any online broker can go bankrupt like Zerodha and if that happen then is my money safe with them???

In USA
Lehman Brothers,MF Global,PFG. The money should be segregated by PFG was that client money was not in segreg. account.

 

[hir0406]

In USA
Lehman Brothers,MF Global,PFG. The money should be segregated by PFG was that client money was not in segreg. account.

I am not talking about USA ....
I wanted to know about Indian online discount brokers... for example If I keep 10 lac with Zerodha how much safe it is??

Sent from my MI 4W using Tapatalk

 

[Obelixtrader]

I am not talking about USA ....
I wanted to know about Indian online discount brokers... for example If I keep 10 lac with Zerodha how much safe it is??

Sent from my MI 4W using Tapatalk

I gave you an example how can end reputable broker.

 

[hir0406]

I gave you an example how can end reputable broker.

I understand that and I know anything can happen but I need to know that how much money is safe and is their any regulations which assure clients money like in Forex many brokers have insurance on clients money....

Sent from my MI 4W using Tapatalk

 

[Sunnyraj]

Hello below is the link which says that our money can be compensated upto Rs. 15lacs in case of default by any broker.

https://www.nseindia.com/invest/content/defaulters_committee.htm



Investor Protection Fund
NSE has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of registered Trust created for the purpose. The Investor Protection Fund Trust is managed by Trustees comprising of Public representative, investor association representative, Board Members and Senior officials of the Exchange.
The Investor Protection Fund Trust, based on the recommendations of the Defaulters' Committee, compensates the investors to the extent of funds found insufficient in Defaulters' account to meet the admitted value of claim, subject to a maximum limit of 15 lakhs per investor per defaulter/expelled member.

 

[hir0406]

Hello below is the link which says that our money can be compensated upto Rs. 15lacs in case of default by any broker.

https://www.nseindia.com/invest/content/defaulters_committee.htm



Investor Protection Fund
NSE has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of registered Trust created for the purpose. The Investor Protection Fund Trust is managed by Trustees comprising of Public representative, investor association representative, Board Members and Senior officials of the Exchange.
The Investor Protection Fund Trust, based on the recommendations of the Defaulters' Committee, compensates the investors to the extent of funds found insufficient in Defaulters' account to meet the admitted value of claim, subject to a maximum limit of 15 lakhs per investor per defaulter/expelled member.

Is this only for NSE or its for Mcx also?

Sent from my MI 4W using Tapatalk

 

[Steve_1982]

Don't keep too much unused cash with broker. If all your money is in stocks, the DP/NSDL account should be transferrable.

I wouldn't advise commodity trading, I did it for over 3 years and could not profit. I was profitable in stocks (investing, not trading) within 6 months.

 

[VJAY]

I am not talking about USA ....
I wanted to know about Indian online discount brokers... for example If I keep 10 lac with Zerodha how much safe it is??

Sent from my MI 4W using Tapatalk

Ask this Q in zerodha thread ...sure they will give you proper reply

 

[lemondew]

Online brokers are less likely to go bankrupt if they have a sound business model and less debt.

Zerodhas been growing 100% per annum and is a company with decent financials. Read it many places including times of India.

Been using it since 2014 with no issues.