Paytm Money is a mutual fund distribution and discount stockbroking company fully owned by One97 Communications. Paytm has been a leading digital payments platform in India for years. The platform has more than 3 million users on its platform, Paytm Money, which previously was dedicated solely for investing in mutual funds. This Paytm Money Review also discusses how the company has recently branched out to include broking services in the platform with an aim to provide discount broking services to its customers.
Securities and Exchange Board of India (SEBI), the capital market regulator provided the approval for the launch of Paytm Money stockbroking services. The company has also received the broker membership from National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The company is launching its broking platform to target self-directed traders who don’t need third-party management and expert guidance for their investments. The new platform offers equity and cash trading, ETFs, derivatives, and other traded exchange products to its customers.
Salient Features of Paytm Money
The discount broking company provides several features to attract retail investors into investing in their new platform. The salient features of the platform are:
The company is offering no-fee investment, KYC procedures, transactions, account opening, and Risk profile assessment. Along with this, the company claims to have no-hidden charges associated with broking.
Privacy and Security
This is the major concern every investor has in mind while thinking of investing in the stock market. With years of experience in the digital payments system, it has good data protection in its belt. With two factor authentication and bank-level data protection, it provides high privacy and security.
Paperless operations are the backbone of the digital world, and the Paytm platform is dedicated to promoting paperless transactions and the KYC process. With digital KYC process, it provides the opportunity for the retail investors to trade through a seamless digital platform, without any hassle.
Interactive interface is an important aspect of any successful investing platform. Paytm with its vast experience in app development, provide a wonderful interface in its app by reducing the number of tabs required to get the things done.
Paytm Money Trading Platforms
Paytm Money Trader
Paytm Money Trader terminal is a great trading application. The platform provides a wide range of analysis, information, market trends, and other related features. Some of the characteristics of the platform are:
- Live market data and streaming quotes. The application provides retail investors with 5 bids and open interest quotations.
- The investors can follow up Average Traded Price (ATP) and Daily Price Range (DPR) before making a decision on making the call. The platform provides single-click ordering with a short-cut key. The users can access other features using the shortcut key.
- For security, the platform comes with 2-factor authentication to add multiple market watch lists allowing users to view information on pre-selected scripts. Users can check information like best bid rate, Last Traded Price, best offer rate, total volume, etc.
- For functional and technical evaluation, multiple chart forms are available on trader terminals like Line, OHLC, and Candlestick.
- Users can check graphs with patterns in the duration of one, three, six months, one year, 2 years, and 5 years.
- The analysis available on the platform includes 14 technical trading prices and volume indicators.
- Online money transfer is available with almost every bank including SBI, HDFC, ICICI, Yes Bank, UTI, Axis bank, etc.
Paytm Money Mobile App
The Mobile App from Paytm for Stock Investments has a simple and clean user interface that should attract young investors to invest their money through them, although the execution time for transactions is a bit slow but we hope that issue can be resolved in the next update.
Some features of Paytm Money Trading App:
- Available for both iOS and Android platforms
- Users can trade-in equity, derivatives, currency, and commodity from a single platform
- Investors can trade stocks with the implementation of the eSign facility.
- The app shows a well-organized portfolio to let the users track their positions and holdings effectively. Investors can view the average price, and overall profit and loss of positions and holdings, and other stats.
Paytm Money Mobile App for Mutual Funds
Paytm’s Mobile App for Mutual Funds is similar in nature to their app for Stock Investments and should get even better with time.
Salient features of the platform include:
- Individuals can open the ‘Paytm Money Investment’ App account online using a registered email id or mobile phone.
- The platform provides up to 1% higher returns with Mutual Fund Schemes Direct Plans.
- Invest in India’s 35 mutual fund firms’ schemes.
- New users can open an investment account with digital KYC within 30 minutes.
- Users can invest in any type of mutual funds with short term and long-term goals.
Demat Account Opening Charges
|Depository Source||CDSL and NSDL|
|Account Opening Charges||INR 300 (One Time)|
|Demat AMC Charges||INR 250 (Charged Annually)|
|Trading AMC Charges||Nil|
Brokerage and Charges
|Brokerage||INR 0.01 per executed order|
|Exchange Turnover Charges||0.00325% of turnover on NSE and 0.003% of turnover for BSE|
|GST||18% on brokerage and Exchange Turnover Charges|
|Security Transaction Charges (STT)||0.1% of Turnover on all buy and sell orders|
|SEBI Turnover Fee||0.0005% of Turnover|
|Stamp Duty||0.015% of turnover on buy orders|
|DP – AMC Charges||Nil|
|DP Charges for Delivery Sell Orders||INR 10 per scrip per day (including depository transaction charges)|
|Pledge Creation||INR 32 per trade (including depository transaction charges)|
|Pledge Closure||INR 32 per trade (including depository transaction charges)|
|Pledge Invocation||INR 32 per trade (including depository transaction charges)|
|Remat Charges||INR 250 per 100 shares(including depository transaction charges)|
|Demat Charges||INR 250 per 100 shares(including depository transaction charges)|
|Payment Gateway Charges – Netbanking||INR 10 for each fund addition|
|Payment Gateway Charges – UPI||INR 0 for each fund addition|
|Overdue Interest charges||1.5% per month|
|Physical Statement & Discount||INR 300 per Request and INR 300 per courier|
|Platform fee||INR 300 per annum|
|Digital KYC charges||INR 200 (One-time Charges)|
|Equity Delivery||Up to 4x|
|Equity Intraday||Up to 20x|
|Equity Futures||Up to 3x|
|Equity Options||Up to 5x|
|Currency Futures||Up to 2x|
|Currency Options||Up to 3x|
|Commodities||Up to 3x|
How to Open Demat Account with Paytm Money?
To open a trading account with Paytm money securities you have to follow below steps.
- Fill up the form by visiting their website and clicking on the “Start Investing” button
- You will receive a call from Paytm executive & they will send a link in your Mobile No. & Email
- Just click the link in email or SMS & follow the KYC process.
- You have to upload a few documents for verification purposes like PAN, Aadhaar, etc.
- All your documents will be verified your account will be opened within 1 day & then you can start trading.
Why Open Account with Paytm Money?
- Supports Net banking with all banks
- The platform offers 190+ banks supported auto-payment facility
- Offers low brokerage rate
- Smooth Mobile and Web Trading App
- Offers 1-day Demat account opening
- Interactive user interface
Disadvantages of Opening Account with Paytm Money
Some disadvantages of Paytm Money are:
- As they are discount brokers, they do not provide investment advice and their recommendation is weak.
- Their Android application has a few glitches and the same can be seen in their reviews in Google Play Store.
- There is no backup option in case you miss your SIP
- They do not provide customer care number
By starting into the stockbroking industry, Paytm has now become a comprehensive wealth management service in India. The extensive customer base is their biggest leverage as they have access to young customers who haven’t yet started investing in stock markets, a market of retailers every brokerage firm is aiming to target.
Paytm Money Review