5paisa is a unit of India InfoLine Limited (‘IIFL’) which is a full service broker. IIFL has said to have invested INR 100 Cr in this discount broker firm.
5paisa was launched in the year 2016 and as on date serves more than 7,500 retail customers. It has targeted to acquire around 50,000+ customers in current fiscal period. The customer base of 5paisa is entirely new and is not acquired from IIFL. 5paisa is in the process of demerging from IIFL and is also in the process of getting listed on the stock exchanges. 5paisa has planned to commence trading in commodities and to offer personal loans in near future. It also intends to include funding products like IPO, NCDs etc. as a part of its product profile – this is planned to be routed through a NBFC of IIFL Group. It does not have any major investment infrastructure. It only has a set up office in Mumbai, apart from this, it does not have physical presence in any other part of India or world. For assisting the customers, it has set up a call center format.
5paisa has been recording a daily turnover of INR 1,200 crore which is mainly from equity trading and a miniscule portion, say around a percent is towards currency. It has also been found mentioning that the growth in number of customer is cent percent when compared quarter over quarter. Around 60% of the client base is based out of tier III and tier IV cities.
5paisa Products & Services
5paisa offers equities and derivatives as the major trading products. It also serves mutual funds and insurance on the plate.
Towards the above mentioned products, 5paisa provides following services:
- Trading products : It offers research and advisory services, support services via call center
- Mutual funds : An investor has an option to either create his own fund or may seek help from the advisory team of 5paisa to pick the fund. It provides advisory services via “Auto Investor”, wherein the tool asks for certain inputs from the investor, based on investors’ responses it evaluates the risk appetite of the investor and assesses the returns expected, accordingly, it throws a customized portfolio of mutual funds for the investor.
One can also himself select the mutual fund portfolio, without taking any advice from the “Auto Investor”
- Insurance : It offers car/vehicle insurance, health insurance and term insurance. In this regard, it offers a technology driven automated Investment Advisor. This advisor, calls for basic personal details from the investor, understands the health and lifestyle and the financial position and based on all this details, throws recommendations on the sum to be insured and the policies which may suit the investor’s requirements. It has partnered with all the major industry players like HDFC Life, HDFC Ergo, ICICI Prudential, Bharti AXA, Reliance, L&T Insurance, IDBI Federal, TATA AIG, Edelweiss Tokio life, Exide Life Insurance, Religare, Apollo Munich, Bajaj Allianz, Aegon life insurance, Cigna ttk etc.
5Paisa Brokerage Charges & Fees
It charges INR 650 for opening a trading account and the AMC is Nil. For DEMAT account, there are no account opening charges but an AMC of INR 400 per annum.
It is interesting that in case an investor has an old DEMAT account, he/she can continue with that by linking the same with trading account at 5paisa and need not open a fresh trading account.
5Paisa Brokerage Plans
A flat fee of INR 10 per order for any kind of transaction across all asset segments. As per the personnel of 5paisa, the brokerage charged by them is almost 45-50% lower vis-à-vis that charged by other discount brokers. Further, in comparison to full service brokers, the rates are as low as 98%.
Currently, it is offering super quick offer wherein one can open an account and start trading in 15 minutes. It has also launched digital KYC and thus has paperless process for opening account.
It has also floated an offer wherein, the brokerage charges for first 5 orders are waived off. It offers waiver for account opening and annual maintenance charges.
5Paisa Trading Platforms
5Paisa Mobile Trading Platforms
It offers a mobile app based trading platform i.e. 5paisa app. This is an on the go kind of trading platform. It allows execution of trade orders, lets one track the current movement of his/her stock, one can look into the net position, order book, trade book and margins. It also allws an investor to create his/her own watchlist i.e. customized watchlist. Apart from trading, one can also access mutual funds investment – it allows looking into the available funds, tracking the position of ones owned fund and trading in funds. Thus, this app takes care of account opening, trading, back-office processes and query resolution.
5Paisa Browser Trading Platforms
“Trade Station”, a browser based trading platform which works on google chrome, firefox and internet explorer. It is a fast speed trading platform and allows one to trade in equity, derivatives and mutual funds. Most importantly, it allows transfer of funds from and to one’s bank account.
5Paisa Desktop Trading Platforms
“5paise Trade Station” is a desktop based trading platform. It offers all the advanced analytical tools and charts. Based on the current portfolio, the system flashes suggested scrips, trading ideas to the investor. The mutual funds can also be accessed from this platform.
5Paisa Benefits or Advantages
Offers mutual funds and insurance
Has an advisory system for guiding investor on what MF to opt for and what amount to be insured etc.
User friendly trading platforms
Has a very competitive brokerage rate
Does not offer commodity trading
Advisory is mainly from robotic tools and hence is very algorithmic