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5Paisa Review 2022 – Is 5Paisa Really Good?

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Here is the dedicated article covering the honest 5Paisa Review by our experts after gaining a lot of experience.

5Paisa Review
5Paisa

Detailed 5Paisa Review

What Is 5paisa? 

5paisa is an Indian stockbroker that gives its customers opportunities to trade online with discounted brokerage prices. It is managed by IIFL founders and is considered one of the top investment platforms in the country. Over time, it has built its portfolio of over 1.2 million users in a few years. 

When you decide to trade, it’s always great to compare competitor apps with each other. Use the same parameters and conclude as to which one you find the most suitable and trustworthy. 

To help you in that process, we will be reviewing 5paisa regarding its strengths, weaknesses, and a few other factors. However, before we begin, let’s go over what the app has to offer: 

  1. Online Trading is affiliated with the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Multi Commodity Exchange (MCX). 
  1. It offers equity, currency, and commodity trading. 
  1. Known for charging a flat rate brokerage charge of just INR 20
  1. It’s also got three kinds of packs. The first one is a general, basic pack that allows you to trade ordinarily. The second pack is called a power investor pack that charges you INR 499 extra for stock and long-term ideas for trade, Portfolio analytics, ‘hot’ and ‘profitable’ stocks daily, along with a flat fee of INR 10. 

The third pack for INR 999 is the Ultra Trader Pack with plenty of features like first 100 trades free (in a month), flat fee of INR 10, Intraday exposure of about 4x, no fund transfer charges, no charges for call and trade service. Every customer is given the liberty to opt for the plan they find most suitable for themselves. There’s an actual upgrade charge for every pack that you must consider. 

  1. It’s got a facility to open a demat account, mutual funds account and gives out a trading platform for mobile, website, and more. 

After getting a basic idea of what the app is all about, let’s have a look at how 5paisa is different from other applications.

Strengths Of 5Paisa

Low Brokerage Charges: When trading, there’s generally a brokerage charge that one needs to pay once a transaction takes place. These charges can be very high depending on the company you’ve opened your account with, along with the total sum of your investment. 

However, 5paisa will only charge you a flat fee of INR 20 on each trade without considering the value of your investment. Thus, you could be putting in a few lakhs while trading but only be paying a fee worth two digits. How cheap and convenient! 

Research and Advisory: Another feature 5paisa is known for, and that other companies aren’t great at delivering, is their research on the market. Their team ensures each user is given exposure to the information they gather about the trends, patterns, and fluctuations daily. 

They gather intel on more than 4000 companies, giving their customers many firms to choose from. You could also ask them for portfolio-based analysis as they aid decision-making. This is quite apt for beginners. 

Diversified App: While trading is what 5paisa is known for, we must recognize other features it provides too. It deals with digital gold, lending, international investment, along with mutual funds. Suit yourself. 

Margin Funding: This is one feature that sets 5paisa aside from other applications in the industry. Most don’t allow margin funding, whereas downloading this app will enable you to pay only a sum of money for your investment, and the rest will be taken care of by your broker, who in this case happens to be the app. They fund and support you! 

Analysis: One of 5paisa’s most valued facilities is portfolio analysis. With the algorithm in place and their expert group of investors handling the service backhand, customers can now be offered advice on their portfolios. 

This process involves analyzing how well each trade is doing daily and what the investor can do to improve. There’s quality advice offered and, to some extent, some ease as they are doing most of your work. There’s no need to stress anymore! 

Packs: As mentioned above, 5paisa offers its customers three different packs, all priced differently. As you go on upgrading, the facilities not only change but also improve. They can help you make clear-cut decisions and understand the wealth management sector holistically. 

These perks have definitely set 5paisa aside from other competitors. However, they still lack some features that would take their application to the number one position. Let’s discuss them below: 

  • High call-in-charges: If one opts for a basic pack, the call-in charge to book trade is INR 100. That price is relatively higher than other companies and maybe costly long term since people prefer booking trades via a phone call. It is a quick method to reserve a share, especially when there’s a sudden fluctuation in the market. 
  • No option for 3 in 1 account: A 3 in 1 account has three kinds of facilities.
  1. One, a demat account that holds on to your securities. 
  2. Two, a trading account that acts as a license and allows you to buy or sell shares. 
  3. Three, a savings account linked to your respective bank that holds all your funds. 

This type of account is highly effective and allows the smooth transfer of funds because everything is stored in one place. Unfortunately, 5paisa does not offer an account like this one. 

  • Research not available: For basic plans, 5paisa does not allow customers access to their research and advisory services. They must upgrade to the two other plans for the same. This acts as a major disadvantage for basic plan members, especially rookies who are new to investing. 
  • NRI’s not permitted: Even though 5paisa is an Indian firm that holds US-based investments for customers, Non-Indian Residents aren’t allowed to trade on the application. They must find other firms to help with their trading. 

Conclusion

Overall, 5paisa has some really beneficial features that you won’t find in other apps. These include the idea of 3 different packs, research, and advisory perks, along with International investments.

Marginal Funding is also a facility that is less seen in 5paisa’s competitors. In fact, they’re the only app in comparison to Groww, Zerodha, and Paytm Money to offer Marginal Funding. However, if they had provided a 3-in-1 account feature and lower call-in-charge, they would have seen a growth in their customer base. 

Nonetheless, they’re performing well in the Indian Markets.

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