5paisa.com: Detailed Review

Brokerage Charges, Demat/Trading Account, Trading Platforms, Products and Services, Pros and Cons, comparisons, How to apply for a Demat etc.

5paisa – Company Info

5paisa

5paisa.com was formed in 2016 by a demerger from IIFL Holdings, where the parent company invested 100cr as the initial capital. In two years the company has become the second-largest online discount broker in India.

The company offers trading services in equities, currencies, commodity and derivatives. If also has other service offerings like Mutual Funds, Insurance and Loans.

It has adopted the online model right from the start backed by a strong technology interface. It has some unique product offerings in this segment like Algo trading and Robo-advisory. 5pisa has clubbed the benefits of the full-service broker to a discount broker offering through its subscription add-ons: Power Investor and Ultra Trader.

Awards:

Best Digital Startup of the Year in 2018, ‘Emerging Brand Excellence in BFSI Sector’ & ‘Best Mobile Trading App’ Awards in 2018, Best Broking Fintech Product, 2019, Brand Excellence in Broking Industry/BFSI Sector, 2019, Best Trading App 2019, Emerging Company of the year 2020

Founders: IIFL Holdings
Headquarters: Mumbai

5Paisa – Key Metrics for Evaluation

1. Brokerage Charges

TypeBrokeragePower Investor*Ultra Trader*STT/CTTNSE TransactionBSE TransactionGSTSEBI ChargesStamp Charges
Minimum Charge₹20 per order**₹10 per order**₹10 per order**18%₹5 / crore
Monthly Subscription₹399₹799
Equity DeliveryNilNilNil0.1%0.00325%0.003%18%₹5 / crore0.015% or ₹1500 /
crore on buy side
Equity Intraday₹20 per trade₹10 per trade₹10 per trade0.025%0.00325%0.003%18%₹5 / crore0.003% or ₹300 /
crore on buy side
Equity Futures₹20 per trade₹10 per trade₹10 per trade0.1% on sell side0.0019%Nil18%₹15 / crore0.002% or ₹300 /
cr2re on buy side
Equity Options₹20 per trade₹10 per trade₹10 per trade0.05% on sell side0.05%Nil18%₹5 / crore0.003% or ₹300 /
crore on buy side
currency Futures₹20 per trade₹10 per trade₹10 per tradeNil0.0019%0.00022%18%₹5 / crore0.0001% or ₹10 /
crore on buy side
Currency Options₹20 per trade₹10 per trade₹10 per tradeNil0.05%0.001%18%₹5 / crore0.0001% or ₹10 /
crore on buy side
Commodity Futures₹20 per trade₹10 per trade₹10 per trade0.01% on sell sideA: 0.0026%
B: 0.0005%
A: 0.0026%
B: 0.0005%
18%₹5 / crore0.002% or ₹200 /
crore on buy side
Commodity Options₹20 per trade₹10 per trade₹10 per trade0.05% on sell sideNilNil18%₹5 / crore0.003% or ₹300 /
crore on buy side
A/C Opening30030030018%
Demat AMC₹540***₹540***NIL18%
Trading AMCNilNilNil18%
MarginNil4x
*add-ons, **except for Delivery, ***Charged as ₹45 per month

2. Technology Platforms

a. Trade Station (.exe and web): Robust and high speed .exe trade platform and light weight web based trading platform for equities, commodities and currency trade

Compatible with:

  • Desktop Windows
  • Desktop Mac
  • Mobile – Android (mobile app available)
  • Mobile – iOS (mobile app available)
  • Tablet – Android and iOS

b. 5paisa mobile app: Mobile app-based trading platform for equities, commodities, currency trade and mutual funds

Compatible with:

  • Mobile – Android (mobile app available)
  • Mobile – iOS (mobile app available)
  • Tablet – Android and iOS

c. Robo Advisory: Fully automated mutual fund advisory platform, based on your financial goals

Compatible with:

  • Desktop Windows
  • Desktop Mac
  • Mobile – Android (mobile app available)
  • Mobile – iOS (mobile app available)
  • Tablet – Android and iOS

d. Algo Trading: Automated trading tool that leverages advanced technologies and algorithmic models to execute a trade

Features:

  • Preloaded algorithms (Jobbing, Pivot, But/Sell, Amibroker etc.)
  • Assistance on coding strategies
  • API documents to self-develop coding strategies
  • Assistance for strategy approval by the exchange
  • Simulation environment for strategy testing

Compatible with:

  • Desktop Windows
  • Desktop Mac

3. Products

  • Equity Delivery and Intraday trading, Futures and Options
  • Currency Futures and Options
  • Commodity Futures and Options
  • Mutual Funds
  • Insurance
  • Loans
  • Bonds and Sovereign Gold funds

4. Services

  • Demat and Trading
  • IPO Subscription
  • Mutual Fund Services
  • Intraday Support
  • API Platform Support
  • Robo Advisory
  • Alog Trading
  • Interactive Charts
  • SMS Alerts
  • Email Alerts
  • Portfolio Dashboard

5. Advisory

5Paisa offers advisory services through two add-on subscriptions

Power Investor PackUltra Trader Pack
Long Terms IdeasFree Trades
Short Term Calls4x Exposure
Research on 4000 companiesNo DP charges
Portfolio AnalyzerResearch Pack

6. Support

  • 24×7 customer care
  • Email Support
  • Chat Support

Note: The company doesn’t offer a dedicated RM, toll-free customer care number and does not have any brick and mortar (physical) branches.

Investor Suitability

  • Ideal for investors who prefer a hassle-free brokerage model – flat brokerage ₹20 per trade
  • Investors who are tech-savvy and have prior knowledge of the equity markets
  • Investors who want to enjoy some benefits offered by the full-service stockbroker, but would like to stay with a discount broker for the flexibility they offer (Power Investor/Ultra Trade addons)
  • Intraday traders who deal in large volumes and would like a low brokerage option
  • Long-term investors who are on the lookout for a zero brokerage option for stock delivery

For a detailed comparison with other discount providers, visit our Stockbroker Comparison page.

Pros and Cons:

Pros:

  • Ideal for tech-savvy and knowledgeable investors who prefer a digital platform
  • Intraday traders who deal in large volumes and are looking for a low brokerage option
  • One of the best low-cost alternative for long-term investors as they could ideally make all transactions at zero brokerage

Cons:

  • Non-availability of physical branches, which may not be preferred by a few conservative investors
  • Absence of full-fledged customer support like a full-service broker
  • Promotions of other services like loans and mutual funds in the trading platform
  • Absence of advisory services (the company is targeting a client base which is not looking for this service, hence it is not a parameter of significant importance for its selection)
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