Reviews of Stock Brokers

5Paisa

When it comes to investing in the stock market, choosing the right stockbroker is of utmost importance. It can significantly impact your trading experience, investment returns, and overall satisfaction. In this article, we will provide an in-depth review of 5Paisa, one of India's prominent Discount Broker. We will evaluate various aspects, including brokerage charges, trading platforms, customer support, and more, to help you make an informed decision.

Overview

5Paisa founded in 2007 by Nirmal Jain & Rajamani Venkataraman is a Public company headquartered in Mumbai, India India. As a Discount Broker, 5Paisa aims to provide cost-effective buy/sell orders, enabling investors to save money compared to full-service brokers. However, it is crucial to note that 5Paisa operates as a full-service brokers. It offers extensive investment advice and detailed stock analysis for its clients.

5Paisa Account opening charges

To begin trading with 5Paisa, you need to open a trading account and a Demat account. 5Paisa charges Rs.650 for opening a trading account. Additionally, there is an annual maintenance charge (AMC) of Rs.400 per Annum for the Demat account. However, it's worth mentioning that trading AMC is free.

5Paisa Brokerage Charges

One of the main factors to consider when choosing a stockbroker is the brokerage charges. 5Paisa brokerage charges for various segments are as follows:

• Equity delivery: 5Paisa offers free brokerage for equity delivery trades. This means you can buy and hold stocks without incurring any brokerage charges.
• Equity intraday: For equity intraday trades, 5Paisa charges a flat rate of Rs.20 Per Order per order.
• Equity futures: The brokerage charge for equity futures is also Rs.20 Per Order per order.
• Equity options: 5Paisa charges Rs.20 Per Order per order for equity options trading.
• Currency: For currency futures and options trading, 5Paisa charges Rs.20 Per Order per order.
• Commodity: The brokerage charge for commodity trading is Rs.20 Per Order per order.

Equity Brokerage Charges

Currency Brokerage Charges

Commodity Brokerage Charges

5Paisa Other Charges

In addition to brokerage charges, there are other charges to consider:

• Minimum brokerage charges: 5Paisa imposes a minimum brokerage charge of Rs.20 Per Order.
• Transaction brokerage charges: A customer incurs transaction brokerage charges, which amount to 0.00325% of Total Turnover of the total turnover.
• SEBI turnover charges: Securities and Exchange Board of India (SEBI) levies turnover charges, which are 0.0002% of Total Turnover.
• Stamp duty charges: Stamp duty charges differ based on the state and the specific category of asset.
• GST charges: A GST of 18% of (Brokerage + Transaction Charges) is applied to brokerage and transaction charges.
• STT (Securities transaction tax): 5Paisa charges 0.0126% of Total Turnover of the total turnover as STT.
• Call and trade charges: If you place orders through call and trade, 5Paisa charges Rs 100 per call (any number of trades in a call).

5Paisa Equity Leverage

Leverage enables traders to amplify their market exposure using a relatively smaller capital amount. Here's the leverage provided by 5Paisa:

5Paisa Currency Leverage

5Paisa Commodity Leverage

5Paisa Offers

Numerous stockbrokers are enticing customers with attractive offers in order to expand their client base. Some of these enticing offers include:

5Paisa Features

• Full Service Brokers:

  5Paisa is a leading online stock broker in India that offers discount brokerage services to retail investors. It charges a flat rate of Rs.20 Per Order per order executed, regardless of the trade size, segment, or exchange.

• Range of Investment Products:

  5Paisa is a one-stop shop for various financial investment products. It allows investors to trade in equity, commodity, and currency at BSE, NSE, and MCX. Additionally, it offers investment options in mutual funds, gold, peer-to-peer lending, insurance, and US investments.

• Subscription Plans:

  5Paisa provides three subscription plans: Basic pack, power investor pack, and ultra trader pack. These plans offer different benefits, including reduced brokerage fees, free trades, research advisory, and dedicated customer support.

• Research and Advisory Services:

  5Paisa stands out by offering exhaustive research and advisory services. It provides short-term and long-term investment ideas, derivative strategies, and portfolio-based investment ideas. The platform also offers a portfolio analyzer tool to analyze the performance of your investments.

• Margin Funding:

  5Paisa provides margin funding services. These enable you to make partial payments for your purchases in the cash segment. The balance is funded by 5Paisa at a nominal rate.

• Mobile Trading App and Trading Platforms:

  5Paisa provides a user-friendly mobile trading app, a web-based trading website, and an installable trading terminal. These platforms are built on the latest technology and offer seamless trading experiences. The mobile app allows trading, robo-advisory, and access to various investment options.

• Demat Account Services:

  5Paisa offers demat account services through its membership with CDSL. It has been recognized as a premier depository participant by CDSL.

• Low Charges:

  5Paisa is known for its lowest charges in the industry. It charges a flat fee of Rs.20 Per Order per order executed, and the platform also offers value-add packs for additional benefits. Additionally, 5Paisa provides free account opening and brokerage-free mutual funds.

• Algo Trading and Robo Advisory:

  5Paisa provides algo trading services and robo-advisory to its customers. These services help automate trading strategies and offer personalized investment advice based on risk profiles and return expectations.

• Customer Support:

  5Paisa offers dedicated customer support for its subscribers. The power investor pack and ultra trader pack include free customer support services.

5Paisa Advisory Services

The key distinction between a discount broker and a full-service broker lies in the range of services offered and the rates at which they are provided.

5Paisa Trading Platforms

The 5Paisa trading software comprises various trading platforms suitable for the diverse needs of the customers. It is built on IIFL's trading platform. It has been trusted by customers for the past two decades. The trading platform is available in three different forms. Namely: a mobile app, a web browser-based platform, and an installable desktop trading application.

5Paisa Trading Platforms

5Paisa Mobile App

The 5Paisa mobile app allows users to trade on the go and provides access to trading at BSE/NSE and robo advisory services. Customers can download the app for free from either the google app store or the apple app Store. The app is designed to be simple and intuitive, enabling users to buy stocks, trade in stock and currency futures & options, and invest in mutual funds, ETFs, bonds, and more.

5Paisa Web Trading

For web-based trading, 5Paisa offers a powerful trading website known as 5Paisa trader station. This website can be accessed through any web browser on computers, laptops, mobile devices, or tablets. It provides a wide range of trading and investment options within a single domain. The web platform is seamlessly integrated with payment gateways and banks, enabling instant fund transfers.

5Paisa Trade Terminal

5Paisa offers a trade terminal, which is a downloadable trading terminal specifically developed for active traders seeking advanced trading features. This desktop application offers real-time data and advanced charts for monitoring intraday and historic stock prices. It also offers a variety of keyboard shortcuts to facilitate real-time market monitoring and faster order placement.

5Paisa Customer Support

• Relationship manager: 5Paisa does not offer a dedicated relationship manager for customers. However, they provide other channels for support.
• Offline trading support: 5Paisa does not offer offline trading support. All trading activities are conducted online.
• Online trading support: 5Paisa provides online trading support to customers. Their trading platform is accessible via mobile app, web browser, and desktop application, allowing customers to trade conveniently.
• 24*7 support: 5Paisa offers round-the-clock support to customers. This means you can reach out to their customer support team at any time, even outside regular business hours.
• Email support: Customers can contact 5Paisa’s customer support team via email for assistance. They provide an email address where customers can send their queries and concerns.
• Chat support: 5Paisa does not currently offer chat support as a customer service channel. However, customers can reach out through other available channels.
• Toll-free number: 5Paisa does not provide a toll-free number for customer support. However, they may have a regular helpline number that customers can use to seek assistance.
• Support branches: Yes, 5Paisa has physical support branches where customers can visit for assistance. In addition, customer support is also provided through remote channels.

5Paisa Complaints

Understanding the number of customer complaints received by a brokerage firm can provide insights into the quality and reliability of their services. The following table shows the information regarding the complaints received by 5Paisa.

Conclusion

In conclusion, 5Paisa offers a range of trading and investment options through its user-friendly platforms. With competitive pricing and several investment choices, it is one of the best options for investors. However, the lack of comprehensive customer support and the number of customer complaints are areas of concern. Considering all the features and user experience, 5Paisa can be considered a decent stock broker, but you must examine the pros and cons carefully before making a decision.