5paisa Review 2021 – Demat Account, Margin, Brokerage Charges

5paisa.com is a Mumbai based India’s 2nd largest discount broker after Zerodha. It is a part of the IIFL group (India Infoline Group), India’s leading financial services provider company. 5paisa was re-launched with a new discount brokerage model for online retail broking services in late 2016 by its parent company. Here we’ll discuss all features, plans, charges, Demat Account opening in our 5Paisa Review.

5Paisa Overview

India Infoline, the parent company of 5Paisa, was incorporated in 1995. IIFL group offers a wide range of financial products through-out India with over 1000 branches. IIFL (a traditional brick-and-mortar broker) used the 5paisa brand for its online retail broking business for many years and become very popular among retail traders.

Services offered by 5paisa.com

  • Online Trading – The broker offers Trading in Equity, Equity F&O, Currencies, and Commodities at NSE, BSE, and MCX.
  • Online Mutual Funds – Customers can invest in a wide range of Mutual Funds, ETFs, and Bonds.
  • And Online Insurances – They also offer services to compare and buy Car, Health, and Term insurance online.
  • Personal Loans – The broker also offers a personal loan facility.

Robo Advisory

For a retail investor, it is challenging to choose the best Mutual Funds among thousands available in the market. It’s also not feasible to find a human investment advisory every single time you think about investing in mutual funds.

Robo Advisory is a fully automated advisory system that gives financial advice based on the answers you provide to the questions asked to you.

Built using the advanced computer technology, the 5paisa Robo advisory offers low-cost, handy and irrational investment advisory platforms to its traders and investors.

This service (Robo Advisory) helps customers in choosing best Mutual Funds and Insurance products seamlessly.

5paisa’s Trading Platforms

The 5paisa Trading Platform is built on IIFL’s trading platform that is being used by many traders and investors over the last 2 decades. The trading platform is available on the mobile trading app, browser (web) and install-able desktop trading application (Exe).

5paisa Trading Software

1. Mobile App

The 5paisa mobile trading app offers trading at BSE/NSE and Robo Advisory on the go on your mobile. Customers can download this free trading app from Google App Store or the Apple App Store. The simple trading app can be used to buy stocks, trade in stock and currency futures & options, invest in mutual funds, ETFs and bonds, etc.

2. Web Trading

It has a powerful trading website (www.5paisa.com) that can be accessed from any available web browser on desktop computers, laptops, mobile devices or tablets. The website (also called 5paisa Trader Station) offers all trading and investment options under one web portal.

The web-based trading platform is well integrated with payment gateway and banks for instant fund transfers between trading account and bank account.

3. Trade Terminal

5paisa installable trading terminal is designed for frequent traders who need advance trading tools to trade efficiently. The desktop application offers real-time data, advanced charts for intraday and historic stock prices to its customers.

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

Account Types

1. 5paisa Trading Account

5paisa is India’s fast-growing discount broker among others like Zerodha. The broker is offering to invest and trading services in various segments including stocks, derivatives (F&O) and currency. It is a member of BSE and NSE both. 5paisa trading account is backed by the experience and technology developed by its holding company IIFL for over 20 years in the retail broking industry.

5paisa.com offer trading services under a simple brokerage plan that suits all customers. Traders and Investors can trade across the segments for a flat rate of ₹10 per executed order, irrespective of the size of the order. This comes with the saving up to 90% in comparison to traditional brokers who charge brokerage fee in % of the total turnover.

5paisa trading account is well integrated with mutual funds, ETFs, bonds, insurance and other financial products.

2. Mutual Fund Account

Online Mutual Funds Investment Account is a key offering from the broker for its customers. Anyone can open just a Mutual Funds Investment Account with 5paisa for free of charges.

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

The ‘Auto Investor’ tool is available free of charge to its clients that help with online MF advisory. This tool help in choosing the right Mutual funds based on their risk profile and return expectations.

5paisa Brokerage Charges 2019

5paisa Account Opening Charges & AMC

Service Charges
Trading Account Opening Charges (One Time) ₹650
Trading Annual maintenance charges (AMC) ₹0
Demat Account Opening Charges (One Time) ₹0
Demat Account Maintenance Charges (AMC) ₹400

5Paisa Trading Brokerage Charges

Segment Brokerage Fee
Equity Intra-day ₹10 per trade
Equity Delivery ₹10 per trade
Equity Futures ₹10 per trade
Equity Options ₹10 per trade
Commodity Futures ₹10 per trade
Commodity Options ₹10 per trade
Currency Futures ₹10 per trade
Currency Options ₹10 per trade

How to open an account with 5paisa Capital Ltd?

5paisa offers a 2-in-1 account (Demat + trading account) that gives its customers an option to trade and invest in the stock market as well as in mutual funds. If you are looking for only Mutual Funds as investment options, a separate Mutual Fund Account is also available.

5paisa provides a completely paperless account opening based on Aadhaar Card. If you have Aadhaar number and your Aadhaar number is mapped to your mobile number, the account opening process is really fast with 5Paisa. After completion of the online application and verification via eAadhar, the online trading accounts get activated in a few hours.

You could also download the application form, print it, fill it up and send it to 5paisa Mumbai office via Post to open Demat account.

5paisa Pros and Cons

5paisa Advantages

  • The broker is backed by IIFL, a premier non-banking financial institution in India with experience of over 20 years.
  • Simple and cheaper brokerage plan of flat ₹10 per executed order irrespective of segment (Equity, F&O and Currencies) and size of the order.
  • Free trading platform including mobile app for trading, website and desktop trading terminal. No software charges from the broker.
  • Offers free technical, derivative and fundamental research & advice to customers for an additional cost and it is optional.

5paisa Disadvantages

  • It doesn’t offer 3-in-1 account like ICICIdirect, HDFC Sec, Kotak Sec, Axis Direct.
  • Very high Demat debit transaction charges up to 0.04% (minimum ₹25 per debit transaction). Most other discount brokers charge flat ₹8 per transaction for debits.
  • Higher exchange transaction charges in comparison to other discount brokers in the market.
  • Call & Trade is available at an additional cost of ₹100 per call that is huge. The customer can place any number of trades in one call for a Flat ₹100 fee.
  • Research & advisory services are available at an additional cost that puts the burden on retail traders.
  • The broker, 5Paisa doesn’t offer NRI Trading & Demat Account to its customers.

5paisa Exposure Margin

5paisa leverage for trading intraday, delivery, options trading, currency and commodities.

Segment Exposure Margin
Equity Delivery Upto 4x (Category E 4x, A 3.5x, B 3x, C 2x, D 1.5x)
Equity Intraday Up to 20x
Equity Future Intra-day: 3.5x | Carry forward: 1x (no margin)
Equity Options Intra-day: 1x | Carry forward: 1x
Currency Future Intra-day: 1 time | Carry forward: 1x
Currency Options Intra-day: 1x | Carry forward: 1x
Commodity Future
Commodity Options

5Paisa Review Conclusion

5Paisa is one of the Best Discount Broker in India along with Zerodha. In my review of 5Paisa, I’ve tried to explain all aspects of Trading Platform, its features & charges.

If, I forgot something, let me know in the comment section.

Zelman Yakubov

About the author

Hi, I am Zelman Yakubov, an expert stock market trader. My goal is to educate and mentor people that wants to learn the financial trading markets. In my free time I love to go out for various different entertainment and try new restaurants.

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