5Paisa Review 2020 discusses the various products and services on offer from the second-largest discount broker of India. The company is a subsidiary of India’s largest financial service provider, India Infoline (IIFL Group).
Launched in 2007, 5paisa was relaunched with a new brokerage model in the year 2016 to provide services to the retail brokers of the country. The second-largest discount broker of India is headquarters in Mumbai with more than 1000 branches, spread across the country providing services to more than 8000 customers, mostly based out of tier III and tier IV cities.
The broking house is one of the fastest-growing discount brokers that provides a wide variety of financial products at the lowest brokerage in the industry, which is unlike most of the discount brokers in India.
5paisa offers trading across equity, future and options, currency and commodity segments on NSE, BSE and MCX with a flat fee of INR 10 for every transaction.
It has been recording a daily turnover of INR 1,200 crore and is planning to separate from its parent company.
Read our review on 5Paisa for the year 2019
Why You Should Invest With 5 Paisa?
5 Paisa has been very popular amongst the investor and thus is the second-largest discount broker of India because of the following reasons:
● It is backed by a premier non-banking financial institution in India, IIFL that has experience of more than 20 years in the field of financial services.
● It offers simple and cheaper brokerage plan that is INR 10 per executed order irrespective of segment
● It provides free trading platforms to its customers that include mobile trading app, website trading platforms, and desktop trading terminal.
● It offers its customers free research reports along with technical as well as fundamental advice.
● Unlike other discount brokers, 5Paisa facilitates investment in various financial assets such as mutual funds and insurance.
Types of Accounts
Share Trading Account
5paisa is one of the fastest-growing discount brokers of India. It is backed by its parent company IIFL and offers a variety of investing and trading services, which include stocks, derivatives, and currency.
5paisa is a member of BSE, as well as NSE. It offers trading services through its simple brokerage plans that charge a brokerage of only INR 10 per executed order.
5paisa-trading account is seamlessly integrated with other products offered by 5 Paisa, which are mutual funds, ETF bonds, and insurance.
Mutual Fund Account
The Online Mutual Funds Investment Account is the unique offering of the 5paisa discount broker. It facilitates the opening of the Mutual Funds Investment account free of charge.
Furthermore, 5Paisa also offers Systematic Investment Plans (SIP), which is an automatic periodic investment option in the stock market through mutual funds.
5Paisa provides its customers ‘Auto Investor’ tool for free. The tool helps investors with online Mutual Fund Advisory. The auto Investor tool helps the investor choose the right funds based on their risk profile and return expectations.
Services Provided By 5 Paisa
Online Trading
5Paisa facilitates trading in Equity, Equity Future & Options, Currencies, and Commodities at NSE, BSE, and MCX.
Online Mutual Funds
It facilitates investment in a wide range of Mutual Funds, ETFs and Bonds. You need to open an account with 5Paisa and then you can invest in Mutual Funds, SIPs etc.
Online Insurances
5Paisa facilitates investing in Health, Term and auto insurance online. The discount broker company has its tie-up with many leading insurance companies of the country like ICICI Prudential, Reliance General, Bajaj Allianz, and many more.
Personal Loans
5Paisa offers paperless and instant disbursal of personal loans at attractive interest rates.
5 Paisa School
5Paisa offers stock market education to all types of traders, beginners, intermediate and experts too, through different modules on various topics. In addition to this, the discount broker also has a financial blog on which the discount broker shares blog articles and videos in order to educate the customers.
5Paisa Trading Platforms
5Paisa offers its customers free online trading platforms so that they can make the most of their investments with simple yet technologically advanced online trading and investing platforms that are provided by the discount broker.
This discount broker currently offers customers access through three platforms: Trade station Web (Browser-Based Trading Platform), Mobile Trading App (Mobile-based for Android and iOS users), and Trade Station EXE (Desktop-based platform).
Trade Station Web
Trade Station Web is an advanced user-friendly, web-based online trading platform for fast trading execution.
Salient Features
- The customer can trade with their own choice of the browser that is Google Chrome, Apple Safari or Mozilla Firefox.
- This trading platform offers a consolidated view of the portfolio, positions, and the holdings of the customers across equity and mutual funds.
- It facilitates seamless navigation through the user-friendly interface for giving the customers an all-around trading experience.
- The detailed scrip information including charts, market depths, and options chains makes analysis easy.
5Paisa Mobile Trading App
5Paisa offers quite robust and technically advanced online trading and Robo advisory mobile application. It allows the customers to stay on top of their investment whenever and wherever they want to. The app can be downloaded from Google’s Play Store and Apple’s App Store.
Salient Features
- Fulfills all the trading and investment needs of the customers of 5Paisa.
- Easy selection of the suitable plan with auto investment advisory feature
- Real-time live quotes of market and stocks.
- Seamless execution of the trades by just one click.
- Detailed analysis of the market by multi-market watch lists and charts.
Trade Station EXE
This is a desktop-based trading platform that provides speed and flexibility to the traders. It is also known as 5 Paisa Trading Terminal.
Salient Features
- A highly functional terminal that allows fast trading
- Fully customizable watch list that allows making changes according to personal requirements.
- Provides advanced charting tools with real-time ticks to track stock trends.
- Highly secured desktop-based trading platform
- Allows easy and instant fund transfers
- Shortcut keys provide convenience to active traders
5Paisa Customer Care
5 Paisa provides the following modes of communication with the customers:
- Offline branches
- Toll-Free Number
- Phone Number
- Social Media
5Paisa provides more than average customers care services to its customers. But that is not a big issue, as Discount brokers are not known mainly for their customer care services.
Moreover, this discount broker also facilitates the trading knowledge of its customers by providing tutorials related to trading and communication.
How To Open An Account
5Paisa allows its customers to open a 2-in-1 Demat and trading account in a paperless process that only contains three easy steps. It opens an account based on Aadhar Card.
KEY FEATURES OF 5 PAISA ACCOUNT
- Flat INR 10 brokerage fee per executed order irrespective of the volume of the order.
- All in one account allows management of all the investments – stocks, mutual funds, and insurance.
- 100% automated personalized solutions to the investment needs of the customers through its Robo advisory tool.
- Daily trading strategies provided by the customers
Normally the customers have to pay the account opening charges and the annual maintenance charges, for opening a Demat account with any company.
Pricing
5Paisa offers quite simple and cheap brokerage plans and this is the reason why it is one of the fastest-growing discount brokers of India. The 5Paisa account opening charges and the annual maintenance charges are as follows,
5Paisa TRANSACTION CHARGES
·
| TRANSACTION | CHARGES |
| Trading Account Opening Charges (One Time) | INR 650 |
| Trading Annual Maintenance Charges | Nil |
| Demat Account Opening Charges (One Time) | Nil |
| Demat Annual Maintenance Charges (Yearly Fee) | INR 400 |
This discount broker waives off the account maintenance fees for the first year.
5Paisa BROKERAGE CHARGES
5Paisa is known for its simple brokerage plans and lowest brokerage charges
| TRADING SEGMENT | MARGIN |
| Equity Intraday | INR 10 / Order |
| Equity Delivery | INR 10 / Order |
| Equity Futures | INR 10 / Order |
| Equity Options | INR 10 / Order |
| Currency Options | INR 10 / Order |
| Currency Futures | INR 10 / Order |
| Commodity Options | INR 10 / Order |
| Commodity Futures | INR 10 / Order |
5Paisa Margin
The discount broker’s margin facilities are not that great as compared to their competitors. Below we have discussed 5Paisa’s margin plans in detail:
| Trading Segment | Margin 5paisa |
| Equity Delivery | Up to 4x |
| Equity Intraday | Up to 20x |
| Equity Future | Intra-day: 3.5x |
| Equity Options | NA |
| Currency Future | NA |
| Currency Options | NA |
5 PAISA CONSUMER COMPLAINTS REPORT
5 Paisa complaint reports provide details about
- Number of complaints received by stock exchanges for 5 Paisa
- A number of active clients.
| Exchange | Financial Year | Number Of Consumers | Total Complaints |
| NSE | 2016-17 | 3652 | 2 |
| NSE | 2017-18 | 36034 | 1 |
| NSE | 2018-19 | 101043 | 96 |
| NSE | 2019-20 | 147499 | 28 |
CONCLUSION
5paisa is one of the premium discount brokers of India. 5paisa has brought about a change in the broking industry by introducing a completely digitized platform using which the investors can make the investment in shares, mutual funds and insurance. The brokerage charges levied by 5Paisa are the lowest in India. It has made opening an account, a hassle-free and most importantly completely paper-free process.
This discount broker provides services that are not usually provided by other discount brokers.
5Paisa is a discount brokerage firm that provides a variety of investment options and guides its customers through the process of investment and thereby giving them an opportunity to earn higher returns on their investments.
5Paisa Review
Overall Rating