5Paisa Review 2020, Brokerage Charges, Best Demat Account, Trading Platforms & more

5 Paisa Review

5Paisa Review 2020

Whenever it come to list some of the top discount brokers in India, 5Paisa emerges out as a clear choice. Started in the year 2007, 5Paisa  today serves over 7,500 retail customers and it has around 1,75,000+ clients at present. The broking house is backed by none other than IIFL, one of the top-rated financial service companies of India. 5Paisa review allows its customers to trade across diverse sectors – equity, derivatives, currency, insurance and mutual funds through their websites. 5paisa was relaunched with an updated brokerage model for online retail broking services in late 2016.

Its parent firm, IIFL came into action in 1995. IIFL is known to provide a range of financial products through its more than 1000 branches. Basically, IIFL is a conventional broker and 5paisa is its online arm to target discount broking.

5 Paisa is much like a full-service broker but in a discounted avatar. It is not just any typical discount broker but offers a wide range of services including credit and finance, asset management, wealth management, financial product offerings, investment banking, stock and currency broking, Mutual Funds, IPOs, ETF, Bonds, insurance and advisory services.

Taking into account the unmatched growth of the discount broking firm, that day is not far when 5 Paisa would become the ‘best discount broker of India.’ In comparison of Zerodha, 5 Paisa started its journey in 2016 and currently it holds the 2nd position in terms of active subscribers and its market capitalization of 400 Crore + is really great.

The Discount broker has reported a daily turnover of INR 20, 000 crore which is primarily from equity trading and a minute portion towards currency.

It allows trading across Equity, F&O and Currency on NSE and BSE at a discount brokerage of Rs. 10 per executed order.

As of now, 5paisa has a centralized office in Mumbai with no other branches elsewhere.

5paisa allows its customers to trade in various segments including:

  • Equity
  • Currency
  • Insurance
  • Mutual Funds
  • Commodity
  • Derivative
  • IPOs
  • NCD
  • NFO

From the above list, it can be easily said that 5paisa is a lot more than a typical discount broker in India. It offers a wide range of products under one roof.

Some of the great features of 5paisa are:

  1. Smart Investor

If you want to receive stock investment notions, you can think of getting “Smart Investor” from 5Paisa by paying Rs. 4999+GST.

Benefits of Smart Investor

  • Model Portfolio – Group of hand-picked stocks by 5Paisa research analysts’ team
  • Idea list – An algorithm produced list of top growth stocks that have strong basics and sound base patterns
  • Stock evaluation – The evaluation view effectively joins key stock details you need to check your decision to buy or sell or to go for additional research.
  • Market view – Offers regular commentary on general market conditions of India. It helps investors check whether the market conditions are favorable for investment or hurting the growth of stocks.
  1. Small case

Small case is a group or portfolio of stocks/ETFs of businesses that have strong earnings momentum and bottom-up stories, that are supposed to benefit in the prevailing market scenario.

This will help you to reduce your risk with divergence through various stocks. You will also get the total ownership over the portfolio, contrary to mutual funds where you receive fund units.

You can feasible alter the investment amount in “Small case” at any time. In addition, you can sell the Small case fully or partly whichever way you want.

  1. Swing Trader

Swing Trader tool rests on short term trading ideas for 1 day to 3 weeks, on the basis of combined central and technical analysis.

The tool provides steady recommendation updates based on the market scenario. Short term traders can take the benefit to augment the chances of success.

  1. Sensibull

It is basically an options trading platform that offers easy options trading along with proven strategies.

Sensibull helps investors create your own options strategies or use tools like Open Interest Analyzer, Option Analyzer, Option Chain, Greeks, Screeners, Events Calendars, IV Percentile, and much more. You can also visualize your trades P&L under various scenarios with charts and easily track your trades and strategies.

Types of Accounts

There are typically two types of account an investor can open at 5Paisa.

All in One Account – The account offers 2-in-1 Online Share Trading Account and Demat Account or seamless and easy transactions. The account also provides access to invest in mutual funds and Robo Advisory. 5Paisa offers 100% online share trading and online mutual fund investment opportunity.

Mutual Fund Investment Account – This account is only for mutual fund investment and not offers trading and demat accounts.

The ‘Auto Investor’ tool comes free of charge to a customer which helps in online MF advisory. This tool help in picking the appropriate funds based on their risk profile and return prospects.

Process to Open an account at 5Paisa

You can open a 2-in-1 demat and trading account at 5Paisa completely online (paperless). The procedure is extremely quick if you have all the documents in hands. In fact, you can complete the account opening process within just 5 minutes.

For normal intraday and delivery trading, the only documents that you’ll need are the online copy of PAN Card, Aadhar Card and Cancelled cheque. Apart from this, if you also plan to trade in derivatives, then you’ll have to submit your income proof.

The account opening process is based on Aadhar Card. Thus, your mobile number should be mapped with your Aadhar card as you’ll receive an OTP to verify your account. Here’s the process to open your online demat and trading account with 5Paisa—Paper forms

  1. Visit 5Paisa website
  2. Enter your personal details (Name, email, password etc.)
  3. Choose All In One (Trading + Investment Account) and click on ‘Open Trading + MF Account)
  4. Follow the simple six-step process to enter the details of your PAN CARD, Aadhar Card and bank details and complete the payment.
  5. After making the online application, the online trading accounts get activated within 2-3 hours and you can begin trading.

 

The Offline account opening process is also available where you can download the application form, print it, fill it up and send it to 5paisa Mumbai office.

Required documents for opening the account

Opening a demat account is Aadhaar-based. You just have to keep these documents handy to fast-track your application: Aadhaar Card, PAN Card, Canceled Cheque and the Latest Bank Statement with IFSC/MICR code.

Proof Of Identity

  • PAN Card
  • UID (Aadhaar)
  • Driving License
  • Passport
  • Voter Identity Card
  • Any document notified by the central government

Proof of address

Lastly, you’ll need to submit a proof of address in India. There can be some overlap of address proof and ID proof documents. The full list includes:

  • Passport
  • UID (Aadhaar)
  • Voter Identity Card
  • State issues Driving License
  • Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid
  • mobile phone, piped gas, water bill).
  • Bank account or Post Office savings bank account statement.
  • Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.

5Paisa Trading Platforms

5Paisa has its own in-house trading platforms that provides complete control to the discount broker over its web, desktop and mobile app. These technology-led trading platforms in the market are truly the best in the market. Most of the trading platforms of the discount stock broker are developed in-house which is definitely a unique selling proposition among the leading discount stock brokers in India. They offer trading platforms across devices with high-end features.

Let’s look at 5Paisa’strading platforms.

5Paisa Trade Station

This browser-based trading platform is actually a cloud-based application available on selected browsers – Chrome, Internet Explorer and Mozilla Firefox. The two most distinctive features of this platform are faster trade execution and seamless user experience.

To access it, one needs to visit the 5Paisa’s official website. Click on Login, enter username and password, and you’re ready to trade.

Some of its salient features are:

  • Multiple order types delivering flexibility to the user
  • Intraday along with historical data is available for basic and technical analysis
  • Option to invest in mutual funds and insurance
  • Delivers research tips and call for sound decision making

5Paisa Trader Terminal

The desktop trading application by 5Paisa is 5Paisa Trader Terminal. There are several features of this platform including:

  • Dual level authentication for enhanced security to transaction and trading
  • Consolidated view of user’s portfolio along with access to all trade reports, charges & bills
  • Interactive charting tool for real-time indications about market trends and pattern
  • Market-watch to latest updates on real-time accurate scrips
  • Option to buy and sell using the same integrated window

5Paisa Mobile App

5Paisa Trading & Robo Advisory is a unique mobile app that facilitates online trading and Robo advisory services under the same app. The mobile app is quite exhaustive in terms of usability and features.

According to a report, 70% of all transactions are done every day on this mobile app.

Its features include:

  • All in one account (Trading + Demat)
  • Access to mutual fund
  • Auto Investor feature that allows you choose from a range of plans including Save Tax, Investment for a particular goal
  • Get Live Quotes and order placement for Insurance and other related segments
  • Live NSE & BSE market quotes
  • Advance Charting and Multi-asset LIVE Watch list for detailed analysis
  • Features great performance and order execution speed

5Paisa Auto Investor

It is a web-based robo-advisory mechanism offered by the discount broker to its clients. Using this, one can submit requirements for return expectations, risk appetite, investment spread etc. and based on these preferences, personalized recommendations on investment classes in line with capital segregation and return period are given back to the user.

5Paisa Customer Care

There are multiple channels offered by 5Paisa in regard to customer service.

  • Email
  • Phone
  • Social Media
  • Play Store

There is a dire need to increase the number of communication channels such as Web Chat, Toll-free numbers, and even automated bots to improve the customer service experience of its users.

Various studies have shown that the customer service of 5Paisa needs to be improved as the level of the same is average. Being one of the top discount brokers in India, 5Paisa needs to be backed by excellent customer service at all levels.

5Paisa School

In order to educate its investors at every stage of trading, 5Paisa School is a great initiative by the discount broker. This section is meant to be of great use for everyone – beginners, intermediate or expert level traders. The entire educational portal is divided into different modules:

  • Equity
  • Technical Analysis
  • Mutual Funds
  • Derivatives
  • Trading Psychology

The investment-relate information is imparts in the form of interactive videos and blogs that are updated on a regular basis.

5Paisa Pricing

5Paisa brokerage charges are straight and pretty simple in comparison to other brokers. The brokerage is flat Rs. 10 for all segments. On this front, 5Paisa brokerage is similar to that of MyValueTrade(10) and a bit higher than SAS Online (9) and Wisdom Capital (9) and lower than ProStocks (15), Zerodha (20) and  Upstox  (20). There are no monthly or yearly plans. However, call and trade facility is available.

 

Segment  Brokerage Fee
Equity Delivery₹10 per trade
Equity Intraday₹10 per trade
Equity Futures₹10 per trade
Equity Options₹10 per trade
Currency Futures₹10 per trade
Currency Options₹10 per trade
Commodity Futures₹10 per trade
Commodity Options₹10 per trade

5Paisa Account Charges

SrServicesCharges
1Annual Maintenance Charges (AMC)Rs 400
2Debit Charges0.025% (minimum Rs 25 per transaction)
3Credit ChargesNil
4Pledge creationRs 50
5Pledge closure
6DEMAT – Per certificateRs 15
7REMAT – Per certificate Per 100 Units/shares (Whichever is higher)Rs 15
8Conversion of MF units/Destatmentisation Per SOARs 15
9Reconversion of MF units in to SOA or Redemption/Restatmentisation Per SOARs 15
10Postal Charges per request shall be charged separatelyRs 40

 

Segment  Transaction Fee
Equity Delivery₹325 per crore (0.00325%)
Equity Intraday ₹325 per crore (0.00325%)
Equity Futures₹210 per crore (0.0021%)
Equity Options₹5100 per crore (on premium) (0.051%)
Currency Futures₹210 per crore (0.0021%)
Currency Options₹5100 per crore (on premium) (0.051%)
CommodityNA

5Paisa Margin

Below is table that can be referred for the margins provided by the discount broker.

 

ProductMargin/Leverage/Exposure
Equity DeliveryUpto 3.5x via Margin Funding
Equity IntradayUpto 20x leverage for equity
Futures MarginUpto 3x leverage
Options MarginUpto 3x  Margin for options shorting, no leverage for option buying
Equity CO/BO MarginUpto 33x  Margin/leverage  in CO order  for selected equity scripts
Futures CO/BO MarginUpto 33x  Margin/leverage  in CO order  for futures contracts
Options CO MarginNA
Commodity MarginUpto 20x leverage for Commodity

5Paisa Referral Program

5Paisa’s referral program is pretty simple and attractive. Open a free A/C for your referral and earn Rs. 750/- on 5 or more successful accounts referred.

Earning Table

Refer a clientPer Account Referral (in Rs.)Total Referral Reward (in Rs.)
45552220
57503750
107507500
2075015000

Regular Offer

Open a Free A/c for your referral and get Rs. 555/- within 72 hours in your bank A/c on every successful referral.

Monthly earning table

Refer a clientReward per Referral (in Rs.)Earnings Per month (in Rs.)
55552775
155558325
3055516650

The Conclusion

There is no doubt 5Paisa is set to become one of the best discount broking firms in India. Due to low brokerage, great trading platforms, options of tips and suggestions – there are various reasons for an investor to choose 5Paisa over others.

Whether you’re a new investor or an experienced trader, 5Paisa has everything for everyone. However, customer service in one segment that asks for improvement at all levels. Otherwise, 5Paisa is worth the investment and efforts.

5 Paisa Review

Best Discount Broker

Editor's Rating:
5

Do you want to save 90% brokerage & free demat account
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Do you want to save 90% brokerage & free demat account
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Do you want to save 90% brokerage & free demat account
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Do you want to save 90% brokerage & free demat account
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Do you want to save 90% brokerage & free demat account
Start now

Do you want to save 90% brokerage & free demat account
Start now

Do you want to save 90% brokerage & free demat account
Start now

Do you want to save 90% brokerage & free demat account
Start now