Paytm Money Review – Is Paytm Money Really Good?

It’s crucial to go over multiple apps and sites when you’re looking to invest or step a foot into the world of trading. To make things easier, we’re going to see the Paytm Money Review. 

Paytm Money Review
Paytm Money

Founded in 2017, Paytm Money Limited is an Indian discount brokerage and mutual fund firm that falls under the branch of Paytm. It is RBI approved, and SEBI registered. The other services it provides include MF investment platforms, Equity trading, IPO deposits, pension schemes, and digital gold. As of late 2020, Paytm has 60 lakh+ users and is known for its safe transactions.

Paytm Money Review 2021

To understand Paytm as a whole, it is necessary to weigh its advantages and disadvantages. Below is the comparison: 

Pros: 

  • Free equity delivery trading: There is no fee charged for each transaction made. Buy and sell as you wish! 
  • Zero Commission on mutual funds
  • Easy to use trading platform: From creating an account to trading, the process is simple. All you need to do is link your Aadhar, follow the e-KYC method, and you’ll be able to trade in no time. 
  • Zero maintenance charges: Unlike regular demat accounts, Paytm does not expect you to pay an annual maintenance charge. The only thing you need to pay for is opening the account. A sum of INR 200 is needed to complete the process. When looked at long term, this seems like a better deal than any other site. 
  • All-bank support: One of the best parts about opening a Paytm Trading account is that all banks in the country support it. You need not worry about your bank account; one click, and you’ll be set to go! 
  • Extremely Low Brokerage: Paytm is famous for charging a very small number when it comes to trading. Other DP’s settle a value based on your transaction, but the maximum fee that Paytm will charge is INR 10. In other cases, it can also ask you for 0.05% of your amount. Out of these two options, whichever is lesser, that will be your final brokerage expense. 
  • Mobile Tracking: One of the best features of Paytm Money is how quickly and smoothly one can monitor their accounts. With one click on an app or website, you’ll be able to see every move you’ve made over some time. 
  • Blogs: While Paytm Money does not offer personalized suggestions and advice on where to invest, it has a blog section where daily market trends are analyzed, product launches are announced, personal finance and capital market news is delivered, and investors are kept updated with the latest news. 
  • Online IPO Application: We’ve always heard about how listing a company on the stock exchange is not only a time-consuming and tedious task but also very pricey. This may hold elsewhere, but Paytm has made it much easier. You can now apply for floatation/IPO via the Paytm app itself. This is an indirect way of going public simply via your phone! 
  • MF Investment Advisory Services: Unlike trading services, Paytm Money offers its customers good quality advice regarding their mutual funds’ investments. Thus, an upper hand! 

Cons: 

  • No branch support: As we’re all aware, shares are still traded physically, with certificates generated after a transaction is complete. Unfortunately, Paytm does not branch out into the in-person transaction scheme. It strictly operates online. 
  • Weak Recommendations: While their mutual fund portfolio is quite strong, Paytm Money does not advise its users in other plans. They are supposed to analyze and evaluate on their own. This may act as a major disadvantage, especially if they’re getting first-timers daily.
  • Customer Review Glitches: One of the most common yet off-putting factors about an app can be its operations. Any glitches or disturbances caused can put a customer in a position of annoyance and irritability. Paytm Money, unfortunately, has been called out for its regular glitches on the android app. 
  • No Margin Trading Facility: A lot of times, borrowed funds are used for trading shares. Thus, collateral is formed for the loan via the broker. However, Paytm Money does not allow that to take place. 
  • SIP Skipping: SIP, being one of the most commonly used investment strategies, doesn’t work very well with Paytm Money. Customers have noticed that once SIP is skipped, there is no way to go back. 

Other Factors to Keep in Mind: 

  • Customer Reviews: Out of a total of 5 stars, Paytm Money has been rated the following: 
  1. Overall: 3.4 stars
  2. Brokerage and Charges: 3.4-4 stars
  3. Customer service and experience: 2.5-2.7 stars
  4. Stock research and advisory: 2.5 stars 
  5. Usability: 3.8 stars
  6. Trading Platforms: 3.1 stars 

Final Verdict

In conclusion, it is safe to say that Paytm Money has its pros and cons compared to other companies such as Zerodha, Up stock, Nirmal Bang, etc. While it has a strong mutual fund portfolio, with customer-friendly brokerage charges and fees, it lacks in the customer service and advisory department. The ratings speak for themselves. 

With a target audience of over 60 lakh customers, one can see that users can confide in the app, stay loyal, and continue trading due to its simplicity. However, due to its poor services in suggesting and advising customers, this app may not be as beneficial for newcomers and rookies as it will be for experts. They’re already familiar with analyzing and evaluating the markets. Hence, choose Paytm money if your pros overweigh the cons! Happy Trading! 

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