Is Dhan App Safe? Detailed Review for Traders and Investors

In today's fast-evolving digital finance landscape, "safety first" isn't just a catchy phrase; it's a non-negotiable principle. As your hard-earned money flows through online platforms, security becomes paramount.

Platforms like Dhan have quickly gained popularity in India's brokerage space, especially among young investors. But as the number of users grows, so does the key question: Is Dhan app safe?

For beginners and experienced traders alike, safety goes beyond a sleek app or fast trades. It includes strong data protection, secure fund handling, regulatory compliance, transparent shareholding, and overall broker integrity. In this guide, we'll break down what truly defines a safe trading app and whether Dhan meets the mark.

Table of Contents

• How Dhan Protects Your Money and Data
• Is Dhan App Safe for Long-Term Investment Goals?
• Dhan's Regulatory Standing

How Dhan Protects Your Money and Data

In the world of online trading, "safe" essentially boils down to two critical aspects: shielding your personal and financial data from unauthorised access, and ensuring your funds and securities are protected from fraud, malpractice, or the broker vanishing without a trace. 

So, how does Dhan stack up in its efforts to be a digital fortress for its users?

Well, it claims that the security of user accounts is a top priority and backs this up with several protective measures:

• Data encryption: Dhan employs high-grade encryption to safeguard private information, essentially turning your sensitive data into a secret code decipherable only by trusted systems.
• Secure login & authentication: The app supports biometric logins like face ID and fingerprint recognition. It also recommends enabling Two-Factor Authentication (2FA) for an extra security layer beyond passwords.
• Password protection: Dhan advises users to set strong, unique passwords, secure their devices, and update login credentials regularly.

In addition, Dhan allows users to request the deletion of personal data by contacting its privacy team, which is a proactive step toward privacy. While these features meet modern standards, real security depends on ongoing updates, audits, and active user participation.

Security starts right from the moment you sign up. Check the Dhan demat account opening steps to see how simple and secure it is.

Is Dhan App Safe for Long-Term Investment Goals?

When people ask, "is Dhan safe for long-term investment?", they're thinking beyond day-to-day trading. They want to know if their money and shares will be secure for years—or even decades. Thankfully, India's investment system has strong protections in place.

To begin with, it's important to know that Dhan doesn't actually hold your shares and other securities. Since it is a Depository Participant (DP), it acts as a middleman. 

Your investments are kept in a Demat account, held safely by the CDSL (Central Depository Services Limited), one of two official bodies in India that store your securities. Both the CDSL and the NSDL are tightly regulated by SEBI (Securities and Exchange Board of India). So, if you're wondering "Is Dhan broker safe?" or "Dhan is safe or not?", the answer lies in this secure system.

1. Strong protections

• Depository system: Your investments are held with the CDSL or the NSDL, not directly by Dhan. If anything ever happened to Dhan, your holdings would still be safe and could be moved to another broker. 
• SEBI regulation: SEBI watches over brokers and depositories, making sure they follow strict rules to protect investors.
• Broker separation: Since your assets are not held by Dhan itself, you're protected if the broker faces financial problems. 
  So when you ask, "Is Dhan trading app safe?", yes, structurally, it is.

2. How is your account kept safe?

• Nominee option: Dhan allows you to add a nominee to your Demat account, making it easier for your family to access your investments if anything happens to you.
• KYC compliance: Keeping your personal details (KYC) up to date ensures smooth service and legal safety.
• Regular statements from CDSL: You'll get regular updates from CDSL directly, so you can track your shares even without logging into the Dhan app.

3. Features Dhan offers for long-term investors.

• Mark long-term portfolio: You can tag which investments you plan to hold for the long run. This helps avoid panic selling during market dips.
• SIP in stocks & ETFs: You can invest small amounts regularly (as little as ₹100–₹1,000) through Systematic Investment Plans—ideal for slow, steady wealth building.
• Dividend tracker: The app also shows your dividend income, helping you manage your money better.
• Capital gains reports: See how much you've gained over time. They are useful for tax planning and tracking performance.

4. What you can do to stay safe

• Enable security settings: Use fingerprint or face ID login, set strong passwords, and turn on Two-Factor Authentication.
• Check accounts regularly: Monitor your holdings and CDSL statements often.
• Stay private: Don't share OTPs or login info with anyone, even if they claim to be from Dhan.

In short, if you're wondering "Is Dhan app safe?" or "Dhan app is safe or not?" the answer is yes, especially for long-term investing. Between SEBI regulations, depository protections, and Dhan's own features, the system is built for safety. But remember, part of the responsibility also lies with you.

Dhan's Regulatory Standing

If you're asking, "Is Dhan broker safe?" or "Dhan app is safe or not?", one of the best ways to evaluate that is by looking at its regulatory standing. In India, stockbroking is a highly regulated industry, and the Securities and Exchange Board of India (SEBI) acts as the central authority to enforce rules, protect investors, and ensure transparency. 

Any broker operating legally must meet strict requirements, maintain accurate financial reporting, and undergo regular audits.

Dhan operates under the registered entity Moneylicious Securities Private Limited, and it holds the following credentials:

• SEBI stock broker registration number: INZ000006031
• CDSL Depository Participant (DP) ID: IN-DP-289-2016
• Exchange Memberships: NSE (National Stock Exchange), BSE (Bombay Stock Exchange), and MCX (Multi Commodity Exchange)

These details are essential when considering questions like, "Is Dhan trading app safe?" or "Dhan app is safe or not?", as they show that the platform operates under legal oversight, with clear rules around fund handling and investor protections, including the SEBI SCORES complaint redressal system.

However, you must know that even after all these precautions, Dhan fell short. In November 2022, SEBI issued a penalty of ₹3 lakh to Moneylicious Securities Pvt. Ltd. based on findings from an audit of the period April 2018 to October 2019. The issues cited included:

• Misuse of client funds
• Failure to properly segregate client and company accounts
• Inaccurate weekly data reporting
• Non-compliance with minimum net worth requirements

Dhan responded by explaining that these incidents occurred early in its operations, during a time when the company was new to trading membership and still adapting to regulatory systems. Back-office software limitations were also cited as contributing to the reporting errors.

A CARE Ratings report from January 2025 indicates that Moneylicious Securities has significantly improved its financial health. The report notes:

• A stronger earnings profile and capital base
• Improved liquidity and operational discipline
• Full compliance with the new SEBI regulations introduced in 2023

These newer rules are much stricter than in the past and include:

• Prohibiting brokers from using client funds for bank guarantees
• Requiring mandatory transfers of client funds to clearing corporations
• Greater transparency and limits around retail participation in high-risk F&O trading

Dhan has adjusted to these changes and has also taken steps to educate users. Its "Advisory for Investors" section reflects the latest SEBI guidelines, showing that the platform is actively engaged with the evolving legal landscape.

So, "Is Dhan app safe?", "Is Dhan broker safe?", or "Is Dhan app safe for trading?" Based on its compliance record, regulatory licenses, and clear signs of improvement since its early operational missteps, the answer today is a considered yes. 

Conclusion

So yes: Dhan is safe. It ticks the right boxes when it comes to regulation, data protection, and safeguarding your investments. From SEBI registration to secure login features and the backing of India's central depository system, Dhan demonstrates that it takes user security seriously. That's why we recommend reading the full in-depth Dhan broker review on Finology Select, where we break down how Dhan performs across all these areas.

But remember, safety is just one part of the equation when choosing a broker. You'll also want to consider things like:

• Brokerage fees and hidden charges
• Platform usability and support
• Features tailored to your investment style
• Research tools and educational resources
• Long-term reliability and customer service

Want to know your exact trading costs? Try the Dhan brokerage calculator before you invest. And if you still feel Dhan doesn't quite check all your boxes, no worries, you can do a broker comparison of over 20 of the best trading platforms in India, side-by-side, right here.

Choosing the right broker is a long-term decision. Make it an informed one.

FAQs

1. Is the Dhan app safe?

Yes, the Dhan app is safe for trading and investing. It follows strong digital security practices to protect user data and access. Key safety measures include:

• Data encryption: Your personal and financial information is encrypted, keeping it unreadable to unauthorised parties.
• Two-factor authentication (2FA): Adds an extra layer of login security.
• Biometric login: Options like fingerprint or face ID offer secure, quick access.
• SEBI-registered entity: Dhan operates under Moneylicious Securities Pvt. Ltd., which is registered with SEBI.

Still, platform safety goes hand-in-hand with user responsibility. You should:

• Use strong, unique passwords.
• Avoid sharing OTPs.
• Regularly monitor account activity.

2. Can I trust Dhan for long-term investments?

Yes. The question "Is Dhan safe for long-term investment?" comes up often, especially among newer investors. Fortunately, India's investment infrastructure provides clear protection:

• Your shares and securities are held in a Demat account, not by Dhan itself.
• Dhan acts as a Depository Participant (DP) with CDSL, a SEBI-regulated depository.
• This structure ensures that your investments remain secure, even if Dhan were to face financial trouble.

So, whether your investment window is 10-100 months or 100- 1k days, the underlying safety net is strong and independent of the broker.

3. What happens if Dhan shuts down?

This is an important concern, and thankfully, the system has clear safeguards in place. If Dhan (Moneylicious Securities Pvt. Ltd.) ceases operations:

• Your securities (shares, ETFs, mutual funds) stay safe in your Demat account with CDSL/NSDL.
• You can transfer them to another registered broker without losing access.
• Any unused money in your trading account can be recovered via the Investor Protection Fund (IPF).

So, "Dhan app is safe or not" becomes less about the company and more about the strength of the system it operates within.

4. Is Dhan legally safe to use?

Yes, Dhan is legally compliant and operates within India's financial regulatory framework. Here's a summary of its credentials:

• Operated by: Moneylicious Securities Pvt. Ltd.
• SEBI registration no: INZ000006031
• CDSL DP ID: IN-DP-289-2016
• Exchange memberships: NSE, BSE, MCX

These registrations mean Dhan is:

• Subject to SEBI audits and compliance rules
• Required to follow investor protection protocols
• Covered under legal recourse mechanisms if any dispute arises

So, if you're wondering "Is Dhan legally safe?" or "Is Dhan app safe for trading?" the answer is firmly yes.