5paisa: Overview
A successful discount broker in India, 5 paisa provides different trading and investing services across various segments. Its parent company is IIFL that has built a great name in the retail broking industry.
5Paisa: Overview
5paisa Capital Ltd. is a new age company that believes in making the entire process of getting started with trading as simple as possible, offering account opening in three simple steps. One of the leading stockbrokers in India, 5paisa Capital Ltd is publicly-traded, and managed by IIFL founders. This provides the company with valuable experience in the financial markets coupled with its expertise in simplifying the trading experience has enabled it to offer best-in-class services at an extremely low cost.
Based out of Mumbai, 5paisa.com commenced operations in March 2016 and since then has become 2nd largest discount stock broker in India (As on Dec 2018). It is listed on both BSE as well as NSE.
The company currently hires 1000+ employees and recorded a daily turnover increase effectively displaying the traits of a quickly growing company. With over 4.75 million app downloads since 2017, it is the country’s fastest growing broker.
The brokerage house provides one of the lowest brokerage in the industry. Reluctantly, it currently serves more than 650000 customers, while it had targets to acquire more customers’ pre-COVID. It is still in the top 10 brokers, second only to Zerodha in terms of growth. 5Paisa has been recording a daily turnover of more than INR 40000 crore, a majority of which comes from equity and the rest, mainly from currency. It has been worth mentioning that the growth in number of customer is ver high quarter over quarter, with around 60% of the client base being out of Tier III and Tier IV cities.
5paisa Benefits
1. Low Cost Brokerage: You can save a lot on brokerage costs on all segments. You can pay as low as Rs.10/per trade on all segments. That being said, you can only avail highly discounted rates in paid subscription plans.
2. Paperless Process: Like most brokers in this segment, 5Paisa offers a completely paperless account opening process. All you have to do is start the process on their website here, which may not look like it, but is a boon in this COVID-19 struck times.
3. All-In-One Account: 5Paisa offers a single account for all your demat needs. That is one account for trading, mutual funds, futures and currencies. Manage all your investments from a single account.
Additionally, ypu can enjoy the following benefits:
- You can trade in Stocks, Futures & Options and Currencies at the lowest brokerage.
- Get a Mutual Fund Portfolio customized for your needs from 5Paisa auto-investor.
- You can avail paid subscriptions at highly discounted rates.
- Free Online Stock market training is provided through the 5paisa school.
- 5paisa also has plans to extend its services to trading in commodities and to offer personal loans in near future, and also plans to include products like IPO, NCDs etc.
- To add to these, they have recently introduced pay per use Annual Maintenance Charges (AMC). So, you will be charged only in the month you trade.
And, that’s really interesting and convenient too!
5paisa: Types of Accounts
Demat Account: This can be used as an all in one trading account for equities, bonds, futures, currencies, etc, or simply just a demat account for your dematerialised assets.
Mutual Fund Account: This account is mutual fund specific. This means you can trade in equities and such markets with this type of account, but it does offer access to all kinds of mutual funds regardless of NAV value.
5 Paisa: Trading Tools
5paisa Mobile Trading App : It has all the neccesssities required out of a mobile trading application, including alerts.
5 paisa Web Trading Platform: This in-browser trading for non-frequent traders, offering basic comprehensive services required for trading.
Trade Station EXE: This is a downloadable application for computer, for daily users and advance traders. This also has a feature of algorithm back-testing and algo-based trading.
5paisa: Account Opening Process
You can open a FREE Demat account in an easy manner. All you need is PAN, AADHAR and a bank account number.
Here are 3 Simple Steps to Follow:
- Fill Your Personal and Bank Details
- Upload Your documents
- E-sign your form
Enjoy a paperless account opening process to support your investing and trading activities!
5paisa: Account Opening Charges
| Charge Type | Amount |
|---|---|
| Trading Account Opening Charges | ₹650 |
| Demat Account Opening Charges | ₹0 (Free) |
| Trading Account AMC | ₹0 (Free) |
| Demat Account AMC | ₹540 yearly (charged as ₹45 per traded month) |
5paisa: Trading Account Charges
5paisa charges Rs.650 as trading account opening charges. However, it can also waive off your Trading Account Opening charges, if they have a promotional offer running at the time you apply for the account.\n
5paisa: Commodity Trading
5paisa Capital Ltd. is a new age company that believes in making the entire process of getting started with trading as simple as possible, offering account opening in three simple steps. One of the leading stockbrokers in India, 5paisa Capital Ltd is publicly-traded, and managed by IIFL founders. This provides the company with valuable experience in the financial markets coupled with its expertise in simplifying the trading experience has enabled it to offer best-in-class services at an extremely low cost.
5Paisa: Commodity Trading
5paisa Capital Ltd was given membership with MCX in January 2018, which enabled the broker to provide a commodity trading platform to customers. 5Paisa started commodity services in March 2019, about an year of upgradation of its platform for the service.
Using 5Paisa, you can trade in commodity derivatives through an all-in-one account, which encompasses equity, debt as well as derivative trading. Thus, in case of 5paisa, you don’t require to open a separate commodity trading account, in case you already have a demat and trading account with the broker. You just need to activate the MCX segment services for online commodity trading through 5Paisa.
In commodity segment, Futures & Options are the instruments to trade in. Through 5paisa, you can trade in various commodities such as Gold, Silver, Zinc, Copper, Crude oil, and others. Along with providing a single account for all the trading needs, 5Paisa offers a flat brokerage of Rs. 20 per order, providing a low cost brokerage experience. But, while being cost-effective, their services are sophisticated, allowing commodity trading across all platforms including the mobile application, website and downloadable trading software. This means you face no additional charges and a flat brokerage fee, with no additional account opening charges as well.
5paisa Commodity Trading: Types of Order
Using 5Paisa, you can place orders with product codes MIS and NRML orders in commodities. However, the discount broker as of now doesn’t facilitate bracket order and cover order in the MCX segment.
5paisa Commodity: Trading Margin Details
Using 5Paisa, one can trade only in commodity derivatives for the current months only, while generally, there are options to trade in current, near, and next month derivative commodity contracts. In terms of exposure, the broker provides 2x for intraday futures contracts, for both current and near month period. However, the margin exposure provided for delivery futures and options contract is 1x only.
5paisa Commodity Trading: Procedure
The 5paisa commodity trading is a simple process, as explained below;
1.Allocation of funds: Initially, one requires to allocate required money to the trading account according to the margin requirements depending on type of orders, otherwise you can’t place orders to trade in commodities.
2.Order placement: After making sure you have necessary funds, one can place a buy order through either of the platforms/portals.
3.Settlement: There is no physical delivery of commodities, therefore, the settlement will only be based on contract expiry which will be reflected in your account based on T+1 day.
5paisa: Demat Charges, Reviews, Details
The Demat account opening is FREE and you experince a hassle free online process.