5 Paisa Review
Whenever it come to list some of the top discount brokers in India, 5Paisa emerges out as a clear choice. Here is an honest 5Paisa Review about its history, progress, brokerage charges, trading platforms, demat account, Margins and more.
Started in the year 2007, 5Paisa today serves over 7,500 retail customers and it has around 1,75,000+ clients at present. 5Paisa allows its customers to trade across diverse sectors – equity, derivatives, currency, insurance and mutual funds through their websites at low brokerage charges. 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.
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:
- Mutual Funds
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.
Review of Some great features of 5paisa are:
- 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.
- 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.
- 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.
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 5 Paisa 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
- Visit 5Paisa website
- Enter your personal details (Name, email, password etc.)
- Choose All In One (Trading + Investment Account) and click on ‘Open Trading + MF Account)
- Follow the simple six-step process to enter the details of your PAN CARD, Aadhar Card and bank details and complete the payment.
- 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
- 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:
- 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.
- 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.
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:
- Technical Analysis
- Mutual Funds
- Trading Psychology
The investment-relate information is imparts in the form of interactive videos and blogs that are updated on a regular basis.
5Paisa Brokerage Charges
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.
5Paisa Account Charges
This is the current plan of 5 paisa valid till 31 December 2020.
Zero Account Maintenance Charge
5 Paisa recently announced Zero Account Maintenance Charge with effect from 1st January 2021. Now you need not pay any demat account maintenance charge (AMC).
Below is table that can be referred for the margins provided by the discount broker.
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.
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
The Conclusion – 5 Paisa Review
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.