5paisa (Review)

Are you looking for a trust-worthy discount broker in India to spur your journey of online trading? Then 5paisa is your best option! 

5paisa, India’s first listed discount broker, offers a user-friendly platform and low brokerage fees. It gained quite a popularity among the investors. 

But what’s something that makes it stand out from other discount brokers? 

In this article, we’ll do a thorough analysis of 5paisa, and provide you an honest review about its trading platform, account charges, brokerage charges, demat account and more. 

Get ready to dive into the world of 5paisa, and discover why 5paisa is better than other online brokers…

5paisa Review: Summary

5paisa is India’s first listed discount broker, It gained huge popularity in the Indian markets among the investors. It is one of the leading online trading platforms in the country with over 33 lakh + customers.

One of the key factors making it different from other online brokers is its low brokerage charges, they are significantly lower than the other traditional full-service brokers.

5paisa offers a range of personalised features such as 100% collateral benefit, free investment, and research reports. It also gives users access to mobile apps, enabling easy trading.

Another thing that makes 5paisa stand out is its fast account opening process. You don’t have to fill out a physical form or submit hard copies of documents, everything’s online and can be done within minutes.

What does 5paisa offer?

Online Trading

It is a very well-known and popular online trading platform in India. It is affiliated with Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Multi Commodity Exchange (MCX). 

Trading Options

You can choose from a range of financial instruments like Equity, Derivatives, Currency and Commodity trading. 

Low Brokerage Charges

It is known for its low brokerage fees compared to the other online brokers, which is Rs. 20 per executed order. 

Three Different Packs

You can select from three different packs: Regular account pack, Power investor pack, and an Ultra trader pack.

Demat and Mutual Account

5paisa offers the best facility of opening demat account and mutual fund account.

Mobile and Web Trading platform

It provides a trading platform for both web and mobile.

5paisa Account Opening

5paisa offers a hassle-free account opening process. No charges are applied for the Demat account opening, Although the AMC of Rs.300 (per year) is charged. You can complete the process with just a few clicks. 

There are different types of accounts to choose from based on your investment goals and preferences. 

The three types of accounts are:

• Equity & Derivatives account (Basic)
• Commodity Account (MCX) 
• Demat Account

5paisa Brokerage charges

5paisa offers the lowest possible brokerage fee for trading online compared to other trading platforms. The brokerage fees are different in all the three packs offered by 5paisa.

• Regular Account: In this pack, 5paisa offers brokerage fee of Rs. 20, net banking fee of Rs. 10, and DP transaction charge of Rs. 12.5
  
• Power Investor Pack: In this pack, 5paisa offers brokerage fee of Rs. 10, net banking fee of Rs.10 and DP transaction charge of Rs.10

• Ultra Trader Pack: In this pack, there are no charges on equity, but for other segments Rs. 10 is charged and no other charges are levied.

5paisa Trading Platforms

When it comes to trading platforms, 5paisa provides one of the best online trading platforms for all devices. It comes with great research and analysis tools, trading view, chartIQ tools, and multiple layouts and order types. 

The order execution on web, trade station and mobile application is extremely fast and the interface is quite user-friendly.

It has a customizable dashboard allowing you to tailor it according to your preferences. It has a terrific security system with multiple layers of protection. 

5paisa Margin Exposure

A great advantage with 5paisa is the margin exposure offered to the clients. 

Margin Exposure allows you to trade with more money than available in your account. It increases your buying potential and earns larger profits. 

Margin exposure depends on the type of stock or commodity you are trading in; ranging from 3 times, up to 20 times. 

For example: If you have Rs. 20,000 in your account, and the margin exposure is set at 10 times for a specific commodity or stock, then you can trade up to Rs. 2,00,000

Note: It’s important to keep in mind that margin trading involves risk and if the profits are amplified, the losses will be amplified too.

5paisa Pros & Cons

Like any other online broker in India, 5paisa has its own pros and cons. Let’s have a look at some of the pros and cons of using 5paisa for trading.

Pros:

• Low brokerage charges
• Wide range of financial instruments (stocks, ETFs, bonds, etc.)
• User-friendly interface
• Quick and reliable trading applications for all devices
• Free mutual fund account
• Algo trading and robo advisory services
• Multilingual

Cons:

• Limited customer support outside business hours
• No IPOs investment
• Less margin exposure
• Margin funding is activated without notice to customers
• Higher exchange transaction charges
• Call & Trade available at high additional cost
• No NRI trading services

Conclusion

In the above article, we have discussed the various aspects of 5paisa. From its account opening, Brokerage charges, Margin exposure to its pros and cons everything has been explained properly. 

Based on this 5paisa review, you can now make informed decisions regarding trading objectives. Be aware of the margin funding, as it sometimes gets enabled automatically.

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