Is Angel One Safe? Everything You Need to Know

Angel One is no stranger to the Indian investing scene. Founded as Angel Broking in 1996, it has transformed over the decades into a digital-first fintech platform. Today, with over a crore registered clients and an average of 8 lakh new sign-ups each month, Angel One is playing in the big leagues.

Since its digital shift in 2019, the company has integrated cutting-edge technologies like AI and machine learning to personalise financial services—all within a single, easy-to-use app. But scale and innovation come with new challenges. A rapidly growing user base and digital infrastructure can also attract cyber threats.

So, how safe is Angel One, really? Let's take a closer look at its security measures.

Table of Contents

• Angel One's Security Measures
• Angel One's Regulatory Scrutiny and Compliance Record
• Best Practices for Users to Enhance Their Security on Angel One 

Angel One's Security Measures

Before choosing Angel One as your stockbroker, the first question that often comes up is, "Is Angel One safe?" or more specifically, "Is it safe to open a Demat account in Angel Broking, now known as Angel One?". These are valid concerns, especially for investors new to the market. 

Angel One employs some of the best safety measures to keep you, your data and your money safe, like:

1. SEBI Registration

Angel One Limited is fully registered with the Securities and Exchange Board of India (SEBI), which is India's financial regulator. 

It holds the SEBI registration no. INZ000161534 operates as a trading member on the NSE, BSE, MCX, NCDEX, and MSEI. It's also a registered Depository Participant (DP) with CDSL and is authorised to offer research and distribute mutual funds.

This means whether you're wondering whether Angel Broking is safe or not, or whether the Angel Broking app is safe or not, the platform is legally recognised to handle trading, investment, and Demat services.

2. SEBI Compliance

SEBI lays down detailed rules on how:

• Brokers should manage investor money
• Much capital they must maintain
• They should report transactions
• They must secure client data

This gives investors a solid framework of protection. However, SEBI has been pushing for stronger security practices—like SIM binding, biometric authentication, and QR-based login systems—to reduce fraud risks. 

Angel One states that it complies with all regulatory and information security standards. However, whether the Angel One app is safe depends on its ability to stay current and proactively protect its users.

3. Investor Protection Fund (IPF)

SEBI has also set up an IPF, which can compensate investors up to ₹25 lakh if a broker defaults. That's especially important for users who ask, is Angel Broking safe or how safe is Angel Broking in the worst-case scenario.

Angel One lists IPF coverage as one of its safeguards. However, it's important to note that this fund is only triggered in cases of broker insolvency, not market losses or scams that don't involve direct broker responsibility. 

So, is Angel One safe? Legally and structurally, yes. But if you're asking, Angel One is safe or not, the real answer lies in how well it enforces these protections in practice, especially as it continues to scale.

4. Other Safety Precautions

In addition to its primary security features, Angel One incorporates several other safety precautions to enhance your protection, like:

• Data encryption: Uses secure encryption protocols to protect sensitive data.
• Two-Factor Authentication (2FA): Required for login (password + OTP/biometrics), enhancing security. Users should remain cautious of phishing and SIM swap fraud.
• Secure communication: Advises checking for "https://" and padlock symbol for encrypted data transfer, ensuring protection from eavesdropping.
• Vulnerability management: Regular risk assessments and post-breach investigations (e.g., 2025 AWS breach) to address weak spots.
• Platform security: Incorporates 2FA, OTP logins, and paperless KYC. D.A.S.H. tool provides transparency in tracking expenses.
• Password policies & transaction alerts: Encourages strong, unique passwords. Sends alerts for unusual transactions to detect unauthorised activity.

The platform also sends real-time SMS and email alerts for all transactions and actively educates users on fraud prevention, including how to identify scams, avoid clicking on shady links, and steer clear of unsolicited investment tips.

Angel One's Regulatory Scrutiny and Compliance Record 

While the broker generally maintains good standing, there have been instances of non-compliance that led to penalties, such as:

1. The February/March 2025 AWS incident

In February 2025, Angel One suffered a data breach after unauthorised access to its AWS systems. While it assured clients that funds and login details were safe, some personal data, like contact details, were likely compromised. 

Angel One acted quickly, changing passwords and hiring a forensic team to investigate. While the breach didn't touch your money, the potential for identity theft or phishing was a concern. 

2. Past security blips

A 2023 leak involved unauthorised access to client data, and way back in 2001, it got into hot water with SEBI for dodgy trading practices. While it's ancient history now, it still raises eyebrows when you consider the broker's long-term security history.

3. SEBI penalty

In late 2024, SEBI slapped Angel One with a ₹6 lakh fine for operational slip-ups from 2022 to 2024. Issues included slow fund settlements, late tech glitch reports, and poor oversight of agents influencing client trades. These mistakes point to deeper operational flaws that could affect investor trust.

Despite these issues, Angel One has responded by taking immediate corrective actions. The broker has worked on improving its internal controls, aiming to avoid future lapses. Angel One has also expressed its commitment to meeting legal and ethical standards and remains focused on strengthening its compliance practices. 

Overall, while these setbacks have raised concerns, Angel One is dedicated to continuously improving and ensuring the security and trust of its users.

While Angel One fully complies with SEBI's regulations, it’s always good to understand the broader landscape of SEBI-registered brokers before deciding. Learn more about SEBI registered stock brokers here and ensure you’re choosing a broker that meets the highest standards of security.

Best Practices for Users to Enhance Their Security on Angel One 

While Angel One invests in strong platform security, safeguarding your account also depends on your habits. Here's how you can help protect your account:

• Strong passwords: Use complex, unique passwords combining uppercase, lowercase, numbers, and symbols. Avoid using personal details or reusing passwords from other accounts. Never share your login credentials (Client ID, password, MPIN, or OTP), and be cautious with password-saving features on shared or public devices.
• Stay alert to scams: Be wary of unsolicited messages—emails, SMS, or calls—asking for login details or promising guaranteed returns. Angel One specifically warns users not to trust individuals offering to trade on their behalf.
• Secure devices and networks: Ensure your device has up-to-date software, antivirus protection, and a secure internet connection (look for "https://" and the padlock icon in your browser). Avoid using public Wi-Fi for trading, or consider a VPN for added security. Always log out after your session, especially on shared computers.
• Monitor your account activity: Regularly review your account statements and transaction alerts. Angel One sends notifications for all trading activity—enable and read them. If you notice anything unusual, report it immediately to prevent further risk.

By following these best practices, you'll significantly reduce the risk of falling victim to scams or unauthorised activity. If you're ready to take control of your investments and open a secure Demat account with Angel One, click here to start the account opening process for Angel One Demat Account.

Remember, even the most secure platform can be compromised if users aren't vigilant. Angel One provides the tools and guidance, but users must stay proactive. Security works best when both sides play their part.

Want to understand the costs involved? Get detailed insights into Angel One's brokerage fees using the Angel One brokerage calculator and make informed investment decisions.

Conclusion 

When it comes to stock trading, safety isn't just about firewalls and OTPs—it's about trust, transparency, and how a platform handles both day-to-day operations and unexpected challenges. Angel One has made visible efforts to strengthen its digital infrastructure, but its track record, including past breaches and regulatory penalties, reminds us that no platform is entirely risk-free.

That's why making an informed choice matters more than ever. While Angel One may work well for many investors, others might prioritise different things—stronger user education, faster support, or a cleaner compliance record. The right broker depends on your specific needs, comfort with risk, and expectations from a trading platform. To help with that, check out this in-depth Angel One Review to explore its features, fees, and regulatory standing in detail.

To make that decision easier, tools like Finology Select offer a smarter way forward. Instead of guessing or relying on hearsay, you can compare brokers based on security, pricing, features, and user experience—all in one place. It's a practical step toward investing with confidence and clarity.

FAQs

1. Is Angel One safe or not?

Angel One is a SEBI-registered broker and follows regulatory guidelines, including two-factor authentication and data encryption. However, like any digital platform, it has experienced data breaches in the past. While your funds and shares are usually secure, users should still take precautions like using strong passwords and monitoring account activity.

2. Is the Angel One app safe to use?

Yes, the Angel One app is designed with safety features like OTP-based login, biometric access, and encrypted data transmission. That said, app security also depends on your phone's settings and how careful you are with your login credentials.

3. Is it safe to open a Demat account with Angel Broking (Angel One)?

Opening a Demat account with Angel One is generally safe. The process is fully digital and regulated by SEBI. Just make sure to use secure devices, avoid sharing personal details, and double-check all terms before signing up.

4. Has Angel Broking had any data breaches?

Yes, Angel One (formerly Angel Broking) reported a data breach in early 2025 linked to its cloud infrastructure. While no financial loss to clients was reported, some personal information may have been exposed. It has since taken steps to improve security.