Dhan Broker Review— Provides Up to 5× Leverage, Really?

Dhan Overviews

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Dhan is a tech-driven discount broker in India featuring zero brokerage on equity delivery, flat ₹20 trades for intraday/F&O, deep TradingView integration, algorithmic API access, and up to 5× intraday leverage—all with zero account fees and no minimum deposit.

Pros and Cons

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Is Dhan Safe? Broker Regulations

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Dhan (operated by Moneylicious Securities Private Limited) holds full registration with India’s financial regulators—making it a regulated and secure platform for trading and investing.

Regulation & Licenses

• Registered with SEBI as a stock broker under registration INZ000006031.

• Acts as a Depository Participant (DP) with CDSL (ID: IN-DP-289-2016), allowing seamless demat services.

• Holds memberships on leading exchanges: NSE (90133), BSE (6593), and MCX (56320).

• Regulatory oversight by SEBI and adherence to exchange norms, including guidelines on risk management, pledging, and disclosures .

Security & Data Protection

• Employs industry-standard encryption and secure server infrastructure to safeguard user data .

• Privacy policy ensures personal information is stored only in India, with secure backups and disaster recovery mechanisms.

• FDP (Fraud Detection & Prevention): users are instructed to secure their devices, use strong passwords, and immediately report suspicious activities .

• Pop-up reminders emphasize not sharing OTPs or credentials—a proactive step toward fraud mitigation .

Protection of Funds

• Client funds are held in segregated escrow accounts, in line with SEBI policies—ensuring brokers cannot misuse customer capital.

• Securities pledged on-platform are handled within CDSL-to-broker pledge systems, complying with regulations effective since September 2020.

• Archive of transactions and documents is maintained for 5–8 years, aligning with SEBI, PMLA, and Depository Participant requirements.

Risk Disclosure & Management

• Comprehensive risk disclosure documents are made available, including official “Do’s & Don’ts” and investor charters.

• A detailed risk management policy governs leverage, margin rules, trade square-offs, and margin pledges, adapting dynamically to market risk.

Grievance & Compliance

• A dedicated Compliance Officer (Mr. Manish Garg) and separate email channels exist for broking and DP grievances.

• Investors may escalate issues via SEBI’s SCORES portal, with broker grievance redressal mandated within 21 days.

How to Trade with Dhan?

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Trade Assets

Equity (Stocks)

• Delivery trading with zero brokerage, making it cost-effective for buy-and-hold investors.

• Intraday & Margin Trading Facility (MTF): Up to 4× leverage on over 1,500 stocks, funded by Dhan at tiered interest rates starting at 12.49% p.a.

Derivatives (Futures & Options)

• Futures across equity, commodity, and currency segments at flat ₹20 or 0.03% per executed order.

• Options trading with advanced features—option chain, Greek analysis, flash trade, and bracket orders—all billed at ₹20 per order.

• A full options strategy builder and a dedicated Options Trader app/web interface enhance usability.

Commodities

• Futures contracts for commodity trading—including traditional metals and the newly launched electricity futures—are supported, charged similarly to other F&O trades (₹20/0.03%) .

ETFs & Mutual Funds

• Commission‑free ETF investments and direct mutual fund purchases with zero brokerage, allowing seamless SIP or occasional investing.

IPOs & NFOs

• IPO/NFO subscription via UPI from the app or web, with no brokerage costs. Users can pre-apply and track allotments .

API & Algo Trading

• Access to free DhanHQ APIs offers algorithmic, programmatic, and data-driven trading across all supported segments.

Unique Integrations

• TradingView integration enables chart-based trading and order execution for stocks, futures, and commodities .

• Features include basket orders, dragging orders on chart lines, AVWAP tool, multiple layouts, and live profit/loss monitoring.

How to Trade?

1️⃣ Account Setup & Login

• Download the Dhan mobile app or access Dhan Web (tv.dhan.co for chart-based) via browser.

• Log in using your registered mobile or email, secure it with an OTP, and set your trading PIN.

• For TradingView connection, choose Dhan in the Trading Panel and scan the QR code in-app to authorize.

2️⃣ Fund Your Account

• Transfer funds via bank-to-bank NEFT/RTGS/IMPS or UPI within the app.

• For margin trading, you can instantly pledge existing holdings to unlock buying power.

3️⃣ Charting & Analysis

• On Dhan Web or tv.dhan.co, access TradingView charts with 1-second intervals, AVWAP, 100+ indicators, drawing tools, and customizable layouts.

• Use built-in market scanners (e.g., top gainers/losers), options chain, and Greek analysis for informed decision-making.

4️⃣ Placing an Order

• From any chart or watchlist, click the buy/sell button.

• Select order type: limit, market, SL/SL-limit, bracket, iceberg, or flash trade.

• Set quantity (leveraging MTF if required), price, stop-loss, and target.

• Use Basket Orders or Webhook-enabled orders to execute multiple positions simultaneously.

5️⃣ Advanced Options & F&O

• Open the Options Trader Web or app to view Greek-rich chains, strategy builders, scanners, and ready-made plays like iron condors or straddles.

• Place option orders directly from chain or strategy builders, and monitor P&L in real time.

6️⃣ Manage Positions

• Use the Manage Positions window on Dhan Web to add to, reverse, or exit trades in one click.

• Track real-time P&L, modify targets/SLs, or close entire positions effortlessly .

7️⃣ Algo and API Trading

• For automated trading, integrate with DhanHQ APIs via platforms like Stratzy—enable hands-free execution of strategies like VWAP, TWAP, breakout bots, without coding.

Tools & Features

How Can I Open Dhan Account? A Simple Tutorial

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Opening a full-service Dhan account—including demat, trading, and optional F&O segments—is fast, paperless, and streamlined. Here’s your complete step-by-step guide:

1. Download App or Visit Website

• Use the Dhan mobile app (Android or iOS) or go to the Dhan website and click “Open Demat Account” on the homepage .

• Select between Individual or Corporate/HUF account type (non-individual requires additional documents and a partially offline process).

2.  Mobile & Email Verification

• Enter your mobile number and email, then confirm with an OTP.

• Set up a six‑digit PIN to secure the app access .

3. KYC & Document Submission

• Input your PAN card number and date of birth.

• Upload address proof via DigiLocker or document upload, plus PAN copy, and a selfie for live e‑KYC .

• Digitally sign or upload a scanned signature, and complete income, profession, and trading-experience declarations.

4. Bank Account Linking & Verification

• Provide bank details (account number + IFSC).

• A ₹1 deposit confirms the bank; verification is instant via UPI or within minutes by micro‑deposit .

5. e‑Sign & Aadhaar Verification

• Finalize KYC by e‑signing with your Aadhaar-linked mobile OTP.

6. Verification Timeline

• Once e-Signed, Dhan reviews and submits documents to exchanges and depositories.

• Approval typically completes within 1 hour; full activation occurs within 1–2 business days depending on KRA/exchange processing times .

7. Optional F&O/Commodity Activation

• To enable trading in F&O or commodities, upload income proof (e.g. ITR, salary slip, bank statement).

• This adds margin eligibility formally into your trading profile .

8. Final Setup

• After verification, you receive login credentials/access across all platforms: Dhan App, Dhan Web, Options Trader, TradingView by Dhan, and API tools — all using the same ID and password .

• No AMC or platform charges apply; the account is completely free.

Dhan Charts and Analysis

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Dhan provides robust technical charting and analysis tools that cater to both novice and sophisticated traders, largely through its deep integration with TradingView and native features on its web and mobile platforms.

TradingView Integration

• Direct chart-based trading is enabled through deep integration with TradingView, allowing users to place trades directly from charts on TradingView.com via the “Trading Panel”.

• Offers 1-second interval charts, over 100 built‑in indicators, drawing tools, bar replay, price alerts, basket orders, AVWAP, customizable layouts, and real‑time profit/loss monitoring.

• Supports options charting and order placement directly from TradingView—Dhan is among the first in India to enable this capability.

Native Web & App Charting

• On Dhan Web (tv.dhan.co), users get a seamless charting experience with TradingView features at no extra cost.

• Includes real‑time scanning tools (e.g., top gainers/losers, volume/OI shifts) to identify trading opportunities quickly .

• Dhan’s Options Trader platform augments analytics with Greek metrics, strategy builders, and ready-made templates (e.g., iron condors, straddles).

User Feedback Insights

• Traders praise its “fast trade execution” and intuitive interface, while TradingView users remark it’s “clutter‑less and much better look & feel” compared to some competitors .

• Some users mention sluggish charts and touch‑response issues, especially during volatility—development team has acknowledged and is working on improvements.

Algorithmic & Webhook Automation

• Supports TradingView webhooks, enabling automated order placement via JSON scripts—appealing for traders seeking semi-automated or algorithmic setups.

Dhan Account Types

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Account Type	Key Features & Eligibility	AMC / Charges
Individual Demat & Trading	Standard retail account for resident Indians; access to all segments including stocks, F&O, commodities, mutual funds, ETFs, IPOs	₹0 AMC; ₹0 account opening fees
HUF Demat & Trading	For Hindu Undivided Families; similar access and services as individual accounts	₹0 AMC for HUF
Corporate Demat & Trading	For companies, LLPs, trusts, partnerships; supports stocks, F&O, commodities; requires incorporation docs	₹0 opening; ₹800+ GST AMC from 2nd year
Partnership / LLP Account	Similar to corporate accounts; legally structured partnership firms can open; full market access	₹0 open; ₹800+ GST AMC from 2nd year
Margin Trading Facility (MTF)	Optional overlay on eligible equity accounts; up to 4× leverage on select 1,500+ stocks; interest from 12.49 % to 16.49 % p.a.	Interest charges apply; AMC same as underlying account
Other product types	Intraday (MIS), Delivery (CNC), MTF trades supported; auto-square off times configured per exchange	Brokerage: ₹20/0.03% per intraday/MTF trade; ₹0 delivery

Do I Have Negative Balance Protection with This Broker?

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Dhan does not offer negative balance protection—this means clients can incur debit balances under certain conditions, and they are responsible for settling these promptly to avoid consequences.

How Negative Balance Can Occur

• Mark-to-market losses from intraday or F&O trades may push your account into a negative ledger balance.

• Fees, charges, or settlement obligations—such as DP fees, interest on non-MTF debit, CUSPA charges, or late payment penalties—are also applied to your ledger and can result in a negative balance.

• Physical settlement margin shortfall in F&O contracts during expiry week may similarly create a debit position if additional funds aren’t maintained.

⚠️ What Happens Without Protection

• Auto square‑off: Dhan’s risk management system will force-close positions if margin requirements aren’t met, including when the balance is negative.

• Blocked trading: Client accounts may be temporarily blocked until overdue funds are cleared .

• Penalties and interest: Daily penalty interest (approx. 0.0438% per day) may be levied until the balance is brought to non-negative.

📌 Settlement & CUSPA

• If a client fails to pay for delivery trades, Dhan pledges an extra 130% value of securities to its CUSPA account and may liquidate these holdings after five business days.

• In case of F&O physical settlement non-compliance, Dhan reserves the right to square-off or liquidate positions unilaterally.

🛠 Risk Management & Client Responsibility

• Preemptive margin calls: Dhan notifies clients of margin shortfalls and may liquidate positions if amounts due aren’t met.

• No negative balance waiver: Clients are fully liable for clearing the deficit—even if losses exceed the initial balance.

• Prevention measures: Users must maintain collateral and uphold SEBI-mandated 50% cash/equivalent margin to avoid debits.

Dhan Deposits and Withdrawals

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Smooth, cost-free deposits and flexible withdrawal options make Dhan a convenient platform for managing funds. Here’s a detailed look:

Deposit Methods

• Bank transfers (NEFT/RTGS/IMPS/UPI) via the Dhan App or Web, with zero charges on all methods.

• INR credit reflects by next trading day, subject to settlement cycles—especially for NEFT/RTGS transfers.

• Instant margin via holding pledges: eligible clients can convert pledged equities to trading funds quickly, often within minutes.

💰 Withdrawal Channels

• Fast Withdrawals (IMPS):

  • Available on trading days, 9 AM–5 PM.

  • Up to 90% of free balance, capped at ₹5 lakh per day.

  • Free, credited within 15–20 minutes to 2 hours.

  • Only one request allowed per day.

  • Most IMPS-enabled banks qualify, with some exceptions like Deutsche Bank, UCO Bank, and several co-op banks .

• Standard Withdrawals (NEFT):

  • Applied for amounts beyond 90% free balance or ₹5 lakh, or during off-hours/weekends.

  • Requests before 5 PM on a settlement day are processed by 11:30 PM same day; requests after that or on holidays are processed by 11:30 PM next settlement day.

  • Funds reach your bank account after banking batch times.

⏱ Withdrawal Timelines

🔄 Process Flow

1. User requests withdrawal via the Money > Withdraw to Bank menu.

2. System evaluates free and pledged funds, then displays eligibility for IMPS or NEFT.

3. For fast withdrawals, you get a 1-minute cancellation window.

4. Requests undergo risk checks, and payout scheduling follows regulatory upstreaming rules.

5. The app shows an estimated credit timeline, and customers receive real-time alerts post-transfer.

Limits & Constraints

• Only one withdrawal per 24 hours—even on weekends.

• Up to 90% of free balance can be withdrawn via IMPS (capped at ₹5 lakh).

• Excess requests or off-hour requests automatically route via NEFT.

Support Service for Customer

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Dhan offers multiple support channels to assist users promptly and effectively:

Phone Support

• Available: 09:00–18:00, Monday–Saturday on market days

• Numbers: +91 9987761000 or +91 9930861000

• Charges: No broker-imposed charges; only standard mobile operator rates apply.

• This is recommended if self-help resources or chat fail to resolve urgent issues.

 Live Chat

• Available hours: 09:00–18:00, Monday–Sunday (including weekends).

• Access via the mobile app or website (“Chat with Us” option) .

• Ideal for quick queries like order status, payments, or general troubleshooting.

Email Support

• All-day availability: Email at help@dhan.co, monitored 24×7 .

• Good for non-urgent queries, documentation requests, or detailed case descriptions.

 Knowledge Base & FAQs

• A comprehensive Help Center and Knowledge Base covers topics like KYC, payouts, order management, and more .

• Dhan encourages use of these resources as the fastest solution route for many user issues.

Response Times & Resolution

• Support is typically quick, though may experience delays during peak volume .

• Complex issues may take several hours or up to a day, especially when needing escalation or detailed investigation.

Grievance Redressal Process

• Step 1: Contact support via chat, email, or phone.

• Step 2: If unresolved within 15 business days, escalate to the Compliance Officer at complianceofficer@dhan.co.

• Step 3: Still unresolved after another 15 days? Escalate to Founders Office at founders@dhan.co.

• Step 4: If problem persists, users may approach SEBI’s SCORES portal with all ticket references.

Prohibited Countries: Where Can I Not Trade with this Broker?

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Dhan is strictly available only to resident Indians and prohibits access to all non-resident individuals, including NRIs and foreign residents.

Current Restriction Status

• According to Dhan’s Terms & Conditions, the platform is “only available to residents in India and is presently not available to foreign residents including non resident Indians (NRIs) in foreign jurisdictions”.

• The FAQ on KYC confirms that NRIs are currently unable to open accounts. Any NRI account support is “not yet rolled out”.

Scope of Prohibition

• All NRIs: Those living abroad on NRI, OCI, or PIO statuses cannot open or convert to NRI accounts using Dhan.

• Foreign nationals and residents: Anyone residing outside India is restricted from accessing or registering on the platform.

• Non-Indian entities (e.g., foreign corporations or LLPs) are similarly excluded.

Future Possibilities

• Dhan indicates NRI account support is on the horizon: “We will communicate to all our customers when we roll out account opening for NRI”.

• However, no timeline or details have been officially provided. Currently, no option to open NRI accounts or repatriable Demat via Dhan exists.

What You Can Do

• If you’re a resident Indian, you can open Individual, HUF, Corporate, LLP, or Trust accounts.

• HUF and corporate accounts require offline KYC.

• Only resident Indian individuals can digitally open accounts with Aadhaar-based e-KYC.

Special Offers for Customers

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Dhan provides several appealing offers aimed at enhancing user experience and fostering engagement, though it’s important to note some programs have changed recently.

Referral Program (Historic & Current Status)

• Dhan previously offered a “Refer & Earn” scheme where users could earn a ₹100 bonus per successful referral (up to ₹35,000 annually) and receive 20% of the referee’s brokerage on all trades.

• However, this referral program was discontinued on September 7, 2024, per a new NSE circular.

• Dhan has announced they’re working on a new referral system, but no specifics or launch timelines have been confirmed yet .

Authorised Person (AP) Partnership

• Dhan supports an Authorised Person program, enabling experienced traders, sub-brokers, or influencers to onboard clients and earn weekly payouts, alongside tools like a dedicated partner dashboard and relationship management support.

• This model is designed for strategic partners with customer networks, rather than for casual referrals .

Signup Bonuses (Unofficial & Affiliate Codes)

• Some third-party promoters highlight codes (e.g. AMAN30, SHAR68) that claim to offer ₹250 signup bonuses, zero AMC, and even 20% lifetime brokerage commission.

• These incentives aren’t officially confirmed on Dhan’s website, suggesting they may be affiliate-driven or limited-time marketing campaigns.

Dhan Review Conclusion

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Dhan emerges as a compelling choice for Indian traders and investors, particularly those who value low-cost trades, advanced technology, and an integrated ecosystem. Here’s a comprehensive evaluation:

Strengths & Reputation

• Competitive cost structure: With ₹0 brokerage on equity delivery, flat ₹20 or 0.03% on intraday, F&O, and commodities, plus a 50% fee discount for female investors, Dhan keeps costs low and predictably simple.

• Modern tech infrastructure: Deep integration with TradingView, chart-based trading, high-frequency data tools, and APIs for algorithmic trading position Dhan as a tech-first leader .

• Growing user trust: Dhan has garnered a 4.6-star average from over 375,000 ratings on TradingView and is often praised for its speed, design, and commission-free equity delivery.

• Seamless onboarding: The fully digital account opening via mobile or web, along with free demat and flexible funding, simplifies entry for both novices and experienced traders.

Areas for Improvement

• User interface complexity: Some users find the platform cluttered. As one Redditor noted, “not so beginner friendly… requires a lot of usage,” which may hinder new users.

• Back-office features lag: Users report slow development in statements, tax support, and mutual fund functionalities—remaining key pain points for active investors.

• Support responsiveness: While generally adequate, there are occasional delays in customer support resolution, as highlighted in user feedback.

Ideal User Fit

• Active traders & F&O enthusiasts: The combination of flat fees, advanced order types (flash, iceberg, bracket), and real-time charting creates a strong offering for seasoned traders.

• Cost-conscious investors: Long-term investors benefit from zero delivery brokerage and transparency without hidden costs.

• Tech-savvy individuals: Those comfortable with digital platforms, APIs, and chart-based workflows will appreciate Dhan’s feature-rich design.

Less suitable for those who require highly polished beginner interfaces, corporate support transparency, or NRI access—these segments are not currently prioritized by Dhan and may experience friction.

Summary and Key Takeaways

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• Zero brokerage on equity delivery, and flat ₹20 or 0.03% on intraday/F&O/commodities, with cost predictability and savings—especially for women traders enjoying a 50% discount.

• Cutting-edge tech stack: Home-built OMS (DEXT) that executes ~85–97% of orders in under 25ms—5× faster than industry benchmarks.

• Robust TradingView integration: chart-based trades, TradingView panel connectivity, 1-second interval charts, and options capabilities within a single ecosystem.

• Fully digital and quick onboarding: Aadhaar-based KYC, no account or AMC fees, API access, margin facility, and instant pledge lending.

• Well-regulated and secure: SEBI-registered, DP via CDSL, escrow accounts, encryption, and fraud controls—all in place.

FAQs

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