[2022] 5Paisa Review! It’s Advantages and Disadvantages

5Paisa is one of the well known discount broker based in Mumbai. The broking house is known as one of the fastest growing and offers one of the lowest brokerages in the industry.

So let’s do a detailed review of 5Paisa and get a good understanding of 5Paisa brokerage charges, its demat account, trading platform and other important features.

What is 5Paisa?

Launched in 2007, 5Paisa, today serves over 7,500 retail customers across the country, aiming to gain another 50,000 customers in this financial period.

5Paisa stands as the leading discount broker till date, being the first of the fintech public companies to enter the BSE and NSE. This stockbroker earned the benchmark of 1 million clients in a short span of just 4.5 years.

The discount stock broker is in the process of de-merging with IIFL (India Infoline Finance Limited), while simultaneously getting listed on the stock exchange. Their user base is yet to be obtained from IIFL (India Infoline Finance Limited) and hence, it is completely new.

5Paisa has currently earned the status of the 6th (6th) largest stockbroker across the country. The company went live and open for operations from the year 2016, right in March. The company has a current customer base of 1.2 million, and a daily turnover of ₹50,000 crore.

One of the near future plans for this firm includes starting commodity trading, as well as offering personal loans. The company also wants to include products like NCDs and IPOs in its product profile.

As they do not yet have a major investment infrastructure (a physical office set up in Mumbai, with a call center format to assist customers), they plan to route it through IIFL Group’s NBFCs.

While mainly from equity trading, 5Paisa is registering ₹1200 crores as its daily turnover. It is also worth noting that their subscriber base is increasing by 1% as we compare each quarter with the previous quarter.

It should also be noted that most of its user base, around 60 per cent, is outside Tier-III as well as Tier-IV cities.

Other figures that speak of the company in a positive light are 6.5 million app downloads, 3000 crore assets under management, a 170% year-on-year growth in the last financial year (FY 2019-20), and several under its prestigious awards. Its multi-product app is a highlight and the company provides detailed research and advice on over 4,000 companies, a one-of-a-kind offering.

5Paisa Account Types

5Paisa Trading & Demat Account

5Paisa is India’s fastest growing discount broker providing investment and trading services across segments including Stocks, Derivatives (F&O) and Currency. 5Paisa is a member of BSE and NSE. 5Paisa Trading Account is backed by experience and technology developed by its parent company IIFL for more than 20 years in the retail broking industry.

5paisa.com offers trading services under a simple brokerage plan. Customers can trade across all segments for a flat rate of Rs.20/order in Optimum Plan and Rs.10/order in Platinum Plan and free equity delivery in Titanium Plan. This brings savings of up to 90% as compared to traditional brokers who charge brokerage fees as a percentage of the total turnover.

The 5Paisa trading account is well integrated with the other products they offer which include mutual funds, ETFs, bonds and insurance.

Mutual fund account

Online Mutual Fund Investment Account is a flagship offering of 5Paisa. You can open only one mutual fund investment account free of cost with 5Paisa.

5Paisa also offers Systematic Investment Plans (SIP), an automatic periodic investment option in the stock market through mutual funds.

‘Auto Investor’ tool is available free of cost to its clients which helps in online MF advisory.

Advantages and Disadvantages of 5Paisa

Following are the advantages and disadvantages of 5Paisa. Before opening a 5Paisa account you should read the advantages and disadvantages of 5Paisa. The advantages and disadvantages of 5Paisa help you find out whether it suits your investment needs or not.

Advantages & Benefits of 5Paisa

  • Flat Rs.20/order irrespective of the size of the trade, segment or exchange.
  • All in one account to invest in Stocks, Mutual Funds, Commodities, Currency, Research and Advisory.
  • Free and paperless account opens in 5 minutes.
  • low brokerage
  • Chatbot for fast and automated customer support even during market hours.
  • With IIFL
  • Minimum DP charges
  • Free mutual fund account
  • Multilingual Trading App for convenience
  • Free trading platform including mobile app, website and desktop trading terminal. No software fee.
  • Provides stock investment ideas and research tools.
  • Best trading platform in convenience with cutting edge technology.
  • Lonely Discount Broker Listed on NSE and BSE
  • Algo Trading and Robo Advisory Services
  • Provides customers with free technical, derivative and fundamental research and advice for an additional cost.
  • Technical calls both over email and mobile.
  • Promoted by IIFL promoters. IIFL is a premier Non-Banking Financial Institution in India with an experience of more than 2 decades.

Disadvantages of 5Paisa

  • Does not offer commodity trading
  • Does not offer 3-in-1 account.
  • Very high demat debit transaction charges. They charge Rs 25 or 0.025% in the Optimum plan.
  • Higher exchange transaction charges in competition with other discount brokers.
  • Advisory is mainly from robotic devices and is therefore very algorithmic.
  • Available in Call & Trade Optimum plan at an additional cost of Rs.100 per call. Customer can make any number of trades in one call at a flat fee of Rs.100.
  • Research & Advisory services are not available in Optimum plan.
  • 5Paisa does not provide NRI trading services.

How to Open Demat Account with 5Paisa?

  • Fill out the lead form
  • Prospect will receive a call from the sales team
  • Appointment will be set up as per availability
  • The sales person will visit the prospect
  • The prospect will have to provide certain information and documents like Aadhaar Details, PAN Details, Account Opening Fees and POA
  • Account will be activated within 1 working day

Why open a trading account with 5Paisa?

  • The brokerage charges are very low – Rs 20 per transaction
  • Account opening process is very easy
  • Very smooth trading platform
  • Allows investment in other asset classes like mutual funds, insurance

5Paisa Products & Services

The list of products offered are:

  • Equity
  • Derivative Trading
  • Mutual Funds
  • Insurance (Car, Term Life, Health, Auto)
  • Commodity Trading
  • Currency Trading
  • SIP
  • IPOs
  • NCD
  • NFO

5Paisa Other Products & Software

  • Portfolio Analyst – An advanced tool that lets users track and analyze their portfolio performance and weigh in their decisions.
  • Swing Trader – Swing traders can choose to take advantage of the short term investment ideas provided by 5Paisa. The broker leverages all kinds of swing trading strategies.
  • Smart Investor – Experts pick stocks for clients and present it through smart investor tools for higher returns.
  • Small Case – It can be represented as a modern investment product for first time investors. It features a diversified, low cost and long term portfolio, i.e. it helps you to invest in multiple stocks and also keep the risk low.
  • Sensibull – The focus of this tool is for options trading. It has features like tracking your positions, doing scenario analysis of your trades using graphs.

5Paisa’s Services

Various services offered:

  • Demat Account
  • Trading Account
  • Intra-day Services
  • Robo Advisory
  • IPO Services
  • Exposure up to 20x

5Paisa Trading Software

5Paisa Mobile App

The 5Paisa Mobile Trading App offers trading in BSE/NSE and Robo Advisory on the go. Customers can download this free app from Google App Store or Apple App Store.

The simple Sahaj app can be used to buy stocks, trade in stocks and invest in currency futures & options, mutual funds, ETFs and bonds etc.

5Paisa Web Trading (5paisa.com)

5Paisa has a powerful trading website (www.5paisa.com) that can be accessed from any available web browser on a computer, laptop, mobile device or tablet. The website (also known as 5Paisa Trader Station) provides all trading and investment options under one domain.

The web based trading platform is well integrated with payment gateways and banks for instant fund transfer.

5Paisa Trade Terminal

The 5Paisa Installable Trading Terminal is designed for traders who require advanced trading tools. The desktop application provides real-time data, advanced charts for intra-day and historical stock prices.

A variety of keyboard shortcuts are available to monitor the market on a real time basis and place orders faster.

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