Digital investment apps have made stock market participation easier for millions of Indian investors.
Platforms like PhonePe Wealth Broking Private Limited allow users to trade securities and invest in financial products through a simple mobile interface.
With the growing popularity of such platforms, maintaining transparency in charges and brokerage practices becomes increasingly important.
This article examines complaint data related to PhonePe’s broking services and highlights what investors should know about excess charges and brokerage churning.
PhonePe Excess Charges Overview
PhonePe Wealth Broking Private Limited is a SEBI-registered stock brokerage firm in India that enables investors to trade securities and manage investments through PhonePe’s digital investment platform.
Built on PhonePe’s strong technology ecosystem, it allows investors to explore stocks, mutual funds, and other investment opportunities in a simple and accessible way.
The platform focuses on ease of use, quick onboarding, and transparent processes. This approach helps both new and experienced investors comfortably manage and grow their portfolios.
Helpful, however, does not equate to complaint-free. PhonePe has had its fair share of complaints from users.
PhonePe Excess Charges Complaints
Brokerage churning in Stock Market refers to the practice where a broker encourages excessive buying and selling of securities in a client’s account, mainly to generate higher brokerage fees.
Instead of focusing on the client’s investment goals, the transactions are driven by commission earnings, which can reduce the investor’s overall returns over time.
Let us dive deeper into how brokerage churning shows up on PhonePe platforms.
Exchange Complaint Data
This is what the data from NSE says about PhonePe Wealth Broking Private Limited:
|
Financial year |
Total clients | No. of complaints | % of complaints w.r.t. clients | Resolved complaints | % resolved w.r.t. Total complaints |
Arbitrations |
|
2024-25 |
355026 | 336 | 0.09 | 336 | 100 | 0 |
| 2025-26 | 236634 | 63 | 0.02 | 55 | 87.30 |
0 |
The table shows how complaints changed across the two financial years.
In 2025–26, the total number of clients dropped significantly to 236,634, and although complaints also fell to 63, only about 87% were resolved, which may raise concerns about whether complaint handling efficiency has slightly weakened despite having fewer cases to manage.
|
Financial year |
No. of complaints | Excess Charges complaints |
% of excess charges complaints w.r.t. complaints |
|
2024-25 |
336 | Around 224 | 66.66% |
| 2025-26 | 63 | Around 40 |
63.49% |
This table focuses specifically on complaints related to excess charges.
In 2024–25, a large share of complaints were about excess charges, making up about two-thirds of all complaints.
In 2025–26, the number dropped to around 40 out of 63 complaints, but it still represents a high proportion, suggesting that excess charging continues to be a major issue and may indicate a persistent problem that deserves closer attention.
When to Take Action Against A Broker?
When dealing with suspected brokerage misconduct, responding promptly is extremely important. Early action can help prevent further losses and strengthen your case if a formal complaint needs to be filed.
Investors should regularly review their account activity, contract notes, and brokerage statements to ensure that all trades match their instructions and investment strategy.
Certain warning signs should immediately draw your attention.
Unusual activity such as unauthorised trading, repeated buy–sell cycles, or sudden spikes in brokerage charges may indicate questionable brokerage practices.
- Persistent pressure from a broker to execute trades without clear reasoning or a defined investment plan.
- Failure to provide contract notes, order confirmations, or transaction records when requested.
These situations may signal excessive trading, poor transparency, or unauthorized handling of your account.
When such issues appear repeatedly, it is advisable to start documenting all communication and reviewing your trading records carefully.
Regulatory authorities such as the Securities and Exchange Board of India require brokers to follow strict compliance and documentation standards.
If these obligations are violated, investors have the right to file a formal complaint and seek resolution through the appropriate regulatory channels.
How to Report a Complaint Against a Stock Broker Online?
If you suspect irregular brokerage activity, following a clear and structured complaint process can help ensure that your grievance is properly examined.
Keeping records and approaching the issue step by step improves the chances of reaching a fair resolution.
Below are the main steps investors should follow when reporting such concerns:
1. Compile Relevant Evidence
Begin by collecting all documents connected to the disputed transactions. This may include contract notes, trading statements, email exchanges, chat conversations, call recordings, and any written instructions provided to the broker.
Having organised evidence helps demonstrate exactly what happened and makes it easier for authorities to evaluate your complaint.
2. Communicate with the Broker
Before escalating the matter, contact the brokerage firm’s official customer support or grievance redressal team. Clearly explain the issue and share copies of the supporting documents.
Many brokers attempt to resolve customer complaints internally, and in some cases, the issue may be corrected or clarified during this stage.
3. Register a Complaint in SCORES
If the response from the broker is unsatisfactory or the problem remains unresolved, you can file a complaint on the SCORES platform managed by the Securities and Exchange Board of India.
Once submitted, the regulator forwards the complaint to the broker and requires them to respond within the specified timeframe.
4. Escalate Through ODR and Arbitration
If the issue still remains unresolved after the SCORES process, investors can first lodge a complaint in SMART ODR, which is the platform used for resolving disputes with market intermediaries.
If the matter is not settled through this stage, it can then proceed to arbitration in the Stock Exchange.
During arbitration, an independent arbitrator reviews the case, examines the submitted evidence, and gives a decision based on the applicable rules and regulations.
Need Help?
Challenging a brokerage firm may feel intimidating, especially when dealing with complex financial documentation. However, you do not have to handle the process by yourself. Register with us.
We can assist you in identifying irregularities in your ledgers, collecting relevant evidence, and preparing the necessary complaints.
Our team can also support you during discussions and proceedings with the concerned authorities.
Contact us today and let us help you pursue the right course of action.
Conclusion
In conclusion, PhonePe Wealth Broking offers a convenient and accessible platform for investors, but the complaint data suggests that certain concerns still persist.
While the overall number of complaints has declined, the drop in resolution rates and the continued dominance of excess charge complaints may indicate areas that require closer attention.
Monitoring transactions carefully and taking prompt action can help protect investments and ensure that brokerage practices remain fair and transparent.
