Safety on WebNotes

Is Zerodha safe

Wed, 20 May 2026 00:00:00 +0000

Is Zerodha safe is a frequently asked question by both new and experienced retail investors. The short answer: Zerodha is a SEBI-registered stock broker subject to the standard Indian regulatory framework, holds large client funds and securities, and operates with security practices typical of major brokers. This article looks at the question across regulatory, financial, security, and incident dimensions.

Regulatory framework

Zerodha Broking Limited is:

Zerodha hack and security incidents

Wed, 20 May 2026 00:00:00 +0000

No documented major hack of Zerodha resulting in client funds or securities loss has been publicly reported. Zerodha has had operational incidents (outages, login issues, slowdowns) on heavy-volume days, and individual client accounts have been compromised via phishing of personal credentials, but the broker’s core systems have not been publicly known to be breached.

This article gives an accurate picture of the security and incident history.

What “hack” typically means in retail discussion

When retail clients ask about Zerodha being “hacked”, they usually mean one of:

Zerodha insurance and Investor Protection Fund

Wed, 20 May 2026 00:00:00 +0000

Zerodha clients are protected against broker default by the Investor Protection Fund (IPF) maintained at each exchange (NSE, BSE). The protection cap is currently Rs 25 lakh per investor per broker per exchange, subject to revision by SEBI. Zerodha does not maintain a separate insurance policy; the protection is via the exchange-level IPF framework that applies to all brokers.

What IPF protects

IPF protection activates when:

The broker defaults (SEBI / exchange declares the broker unable to meet obligations).
Client funds or securities are missing at the broker.
The shortfall cannot be recovered via the broker’s own assets.

Coverage: