The discount broker was an arm of IIFL (India Infoline Limited) before becoming an isolated enterprise in 2017. Although it is relatively a new player in the industry, it is already into three financial domains including Online trading, Insurance, and Mutual funds.
Within stock broking, it allows trading within NSE, BSE, MCX & MCX-SX exchanges through its membership with the respective exchanges.
With its roots from India Infoline, the discount broker has a huge advantage when it comes to industry know-how, dynamics, customer behaviour and so on. And that is why 5Paisa provides you with research tips and recommendations for technical and fundamental analysis as well.
The discount broker claims to have a turnover of ₹1200 Crore every day on the stock market through its clients.
“India Infoline or IIFL has invested ₹100 Crore into its discount broking arm 5Paisa recently. The discount broker has been listed as an individual entity at BSE and NSE in 2017 and works as a separate broker now.”
Very recently, 5Paisa has been listed at BSE and NSE making it the only discount stock broker in India to be listed on the stock market. The broker looks to expand its client base by another 50,000 by the next 12 months, while it currently stands in the range of 70,000+ clients.
Out of the current client base, 60% come from smaller cities i.e. tier 3 or tier 4 of India.
Furthermore, IIFL, its earlier-parent company, will be investing ₹100 Crore into this discount stock broker.
For the past 1 year or so, this discount broker has witnessed a quarter-on-quarter growth of 100% in turnover.
All these facts seem promising for sure.
The million dollar question, however, is whether 5Paisa will able to leverage these benefits?
Coming back to the review, they allow you to trade in the following segments:
Thus, in a sense, it offers a wide range of trading and investment products for clients. And, as a discount stock broker, it is one of the rare USPs for sure.
Prakarsh Gagdani, CEO – 5Paisa
5Paisa Trading Platforms
Pretty much in line with some of the other discount brokers, 5Paisa also provides trading through Desktop, Browser, and mobile based applications. However, what differentiates it from the rest are the unique features these platforms provide over the rest. Here are the details:
5Paisa Trading & Robo Advisory is first of its own kind of a mobile app that provides Online trading as well as Robo advisory services within the same app. This mobile app is pretty exhaustive when it comes to usability or the number of features.
The management of this discount stock broker claims that 70% of the transactions done every day happen through this mobile app, giving an idea of the robustness of the mobile app.
This app allows the users the following features:
All in one account (Trading + Investment)
Access Mutual Fund
“You can access the mobile app of 5Paisa with demo user id and password. Get in touch with Us for you to provide you with the credentials.”
Auto Investor feature allows you to choose from different plans such as Save Tax, Investment for a specific goal, Starting a SIP or Invest liquid cash.
Get Live Quotes and order placement for Insurance and other related segments
Live NSE & BSE market Quotes
Advance Charting and Multi-asset Live Watchlist for better analysis
Provides decent Performance or order execution speed.
The browser trading platform from this discount stockbroker is a cloud-based application available on selected browsers i.e. Chrome, Internet Explorer and Mozilla Firefox only. The platform lets you invest in Mutual Funds as well apart from other financial instruments. The application is known for fast execution time and seamless user experience.
To access this application, the user just needs to go to the official website of the discount broker, click Login, enter username and password and get going with their trading.
5Paisa Trade Station offers you the following features:
Multiple order types offering flexibility to the user.
Intraday as well as historical data available for technical and fundamental analysis respectively.
Provision to invest in Mutual funds and Insurance segments.
Provides research tips and calls to make quick judgments.
To check out the complete review of 5Paisa Trade Station, you can click on this link.
This is how this browser-based application looks like:
Users are allowed to create a demo account for themselves to get an idea around the performance and user experience of the application.
5Paisa Auto Investor is a web-based robo-advisory mechanism offered by the discount broker to its clients. Users can provide their requirements for return expectations, risk appetite, investment spread etc and based on these preferences, personalized recommendations on investment classes along with capital segregation and return period are provided back to the user.
With this system in place, the angle of human error goes out of the window and you can get recommendations based on data points and in fact, get your portfolio monitored for future movements.
5Paisa School or 5P School is an initiative from the discount stockbroker towards stock market education for all kinds of traders, be it – beginners, intermediate or expert level traders. The whole portal provides different modules on topics such as:
Apart from that, there are various videos and blogs that are written and updated on a regular basis. This helps you understand the intricacies and techniques of trading and investment at different levels.
Furthermore, the portal is free to use and does not even require user login to access.
5Paisa offers multiple communication channels to its clients for customer service. These channels include:
The number of communication channels in case of this discount broker is certainly limited and the quality of service in terms of turnaround time can also be improved. At the same time, it is a discount broker and customer service is not really a top USPs of these kinds of brokers. However, the discount broker does better than an average job as compared to most of the discount stock brokers in India.
Not only support, but the broker also tries to educate its users through trading and investment tutorials and blogs on its website.
“5Paisa maintains a financial blog for its users that gives an idea towards the happenings in the stock market with the point of view of the broker.”
Let’s quickly check some details as far as pricing levied by 5Paisa is concerned:
5Paisa Account Opening Charges
There is an account opening charge of ₹250 if you are looking for both trading and demat account. For transacting in commodities, there is no account opening charge involved.
There is also a yearly maintenance charge of ₹400 for individuals and INR 1000 for non-individual entities. Although it might seem a little expensive, with the kind of service the broker provides, it can be termed as a value-for-money service provider.
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Like in case of discount brokers, 5Paisa charges a flat rate of INR 10 implying irrespective of your trade capital, be it INR 10,000, 1 Lakh or Crore, the brokerage will always be INR 10 per executed order.
In fact, 5Paisa is half the price of the likes of Zerodha or Upstox when it comes to brokerage at Intraday levels.
The following margin values are provided to clients across segments:
Upto 15X for Intraday Upto 4X for Delivery
Upto 2X for Intraday
Upto 2X for Intraday
Upto 2X for Intraday
Upto 2X for Intraday
Although the broker offers decent exposure it is adviced that you should use leverage only if you understand the risks of using it. Yes, it is a lucrative concept but using it without knowing the implications, can put you in a risky situation.
5Paisa Funds Transfer
There are multiple ways in which 5Paisa allows you to transfer your funds:
One of the easiest modes of funds transfer using which you can transfer funds from your linked bank account to your trading account. 5Paisa has an integrated payment gateway that allows you to transfer funds from 28 prominent banks of India. The minimum amount you can transfer through Net banking is ₹50.
NEFT or National Electronic Funds Transfer is another mode that you can use to transfer your funds. You will need to following details in order to use this method:
IFSC Code of the bank branch
Once the fund transfer is complete, you are required to provide the following details to the 5Paisa Support:
Transaction reference number
Statement of the bank you used for the transfer
For a quick transfer, you can use IMPS or Immediate Payment Service through online banking. Use this link to check quick information on 5Paisa Bank List.
For people preferring mobile payment wallets, the discount broker has an integration of the payment wallet and you can try this mode as well in order to transfer your funds.
Here are a few concerns associated with the stockbroker:
Service turnaround times can be little high at times
No fixed brokerage monthly or yearly plans.
Hidden charges reported by clients.
Customer service can be improved.
At the same time, here is the bright side of the picture:
One of the cheapest discount brokers in India at ₹10 brokerage per executed order.
Offers a wide range of trading and investment products.
Has gained a reasonable amount of brand equity and trust among its client base in quick time.
High tech trading platforms including the mobile app and browser-based application
Even though 5Paisa is a discount broker, it still provides quality research and tips to its clients through its research team.
Investing in IPOs, mutual funds and insurance pretty simple.
“5Paisa certainly looks one of the promising discount stock brokers of the country. With a low brokerage, decent trading platforms, provision of tips and recommendations – it certainly offers more than value for money service to its clients.
If you are a beginner or a small to medium level investor, this discount stock broker suits the requirements you might have at this stage or phase of your trading career.
Customer service, though, is one area that needs immediate attention and must be improved across communication channels.”
Interested in Opening an account?
Enter Your details here to get a Free Call back!
Post this call, there are 2 ways to get started.
If you have an Aadhar card, then the account opening process can be completed in a few minutes.
Otherwise, you need to provide a few documents to start your account opening process. The documents required are as follows:
An address proof
Bank statement for the last 6 months
Passport sized photograph
AMC fees (if applicable)
Trading Account cheque
Once you are done with this, your account gets opened within 2-3 business days.
5Paisa Membership Information
Here are the details on the different membership details of the discount stock broker:
SEBI Reg. no
SEBI RA Registration
NSE Member Id
Sun Infotech Park, Road No. 16V, Plot No.B-23 Thane Industrial Area, Wagle Estate, Thane - 400604
The details can be verified from the corresponding entity websites.
Here are a few most frequently asked questions about 5Paisa you must be aware of:
Yes, 5Paisa charges only ₹10 per executed order as brokerage charges while in case of Zerodha or Upstox, the brokerage can go as high as ₹20, double of what 5Paisa charges.
Is 5Paisa a trustworthy Broker? Will my money be safe?
5Paisa is the discount trading arm of India Infoline (IIFL), a prominent full-service stockbroker of India which was established in the year 1995. Further IIFL has regularly injected capital into this discount stock broker ( the last one being ₹100 Crore). The discount broker is going to be listed as an individual entity on BSE and NSE this month in June 2017.
What are the account opening and maintenance charges at 5Paisa?
Account opening costs ₹250 and annual maintenance charges are ₹400 per year. If you can start with a capital of ₹50,000 or more, you can negotiate with the executive to levy off these charges for the first year.
In which segments I can invest and trade using 5Paisa?
With this discount stock broker, you can trade and invest in multiple segments including Equity, Currency, mutual funds and insurance. All these investments can be done through any of their trading platforms.
Also, read Check out the comparison of 5Paisa with other stockbrokers: