Is 5paisa a safe, good and reliable stock broker for trading?
- Asked By
- Updated On:04-Nov-2020
- Replies:2
Short Answer
One of the emerging stock brokering company's in the country, 5paisa has been trusted by traders for all the right reasons. Analyse whether its safe and reliable stock broker for stock trading.
Detailed Answer
A publicly traded stock brokering company in the country that is enlisted in the NSE and BSE with zero promoter pledge.
Ever since 2016 (when the company first started offering its services), 5paisa has lakhs of active customers using its platforms to undertake numerous trades and transactions. It's a proud member of the BSE, NSE and MCX. It's a depository participant of the CDSL as well.
5paisa: Is it Safe and Reliable?
5paisa is a stock brokerage company that is promoted by Mr Nirmal Jain (founder of IIFL group). It's primary services revolves around online trading and investments with add-on features such as research and margin funding all thanks to its relationship with IIFL. Also, all the customers acquired by 5paisa are entirely new and not from IIFL. But the latest news suggests that it might be demerging from IIFL.
To remain stable and robust, it utilizes the technical infrastructure of IIFL. The best part about the particular stock brokerage company is that the company doesn't involve itself in proprietary trading. It doesn't accumulate customers shares in a Pool account. All transactions are carried out directly through the customer's Demat account.
As a discount stock brokerage company, it had a daily turnover of 1,200 crores which was mainly from equity trading and a small portion (about a per cent) from currency trading. The company has expanded its trading options to commodities and offer personal loans in the future as well. It also aims to include funding products like NCD's, IPO's and more.
The brokerage charges of the company are quite generic as almost all the trades carried out are in between 10-20 rupees charge per order. The Demat account annual maintenance fee is 400 rupees per annum. Quite reasonable when compared to other stock brokers.
The company has seen record growth in the number of customer acquisitions. About 60% of the total customers are either from tier 4 or tier 3 cities. However, there is no physical office of the company across the country. It has one head office in Mumbai, and for any assistance, the company has set up a call centre format.
What makes 5paisa reliable for trading?
- No power of attorney.
- Straightforward pricing options.
- No client securities in a pooled account.
- The Company is listed in NSE and BSE exchanges.
- Lowest complaint margin.
- Zero promoter pledge.
- Growth-oriented company.
- Technology-focused.
- No proprietary trading.
What should you be concerned about?
1.Margin funding.
2.The company under debt.
3.Loss-making company.
5paisa happens to be a safe, reliable and Trustworthy company. All your investments are safe, and trades can be executed reliably. The entire company is managed professionally and has grown massively in recent years. Technology-focused with a better revenue model has made it an attractive company for many. Although, the pros out way out most of the cons, it a better deed to explore further options and see what benefits you the most. All the best.
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Discussion (1)
Yes, Upstox is safe, good and a very reliable stock broker for trading and long term investing. Being registered with SEBI, NSE, BSE, MCX and CDSL the stock broker has built a good reputation and a decent customer base over the years.
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Ankit Khunteta
Yes, i think you can trust 5 paisa as it was promoted by Mr. Nirmal Jain (IIFL group founder) and it is publicly traded company, so you can study all its financials. Also, one best thing is due to links with IIFL, they offer good research and margin funding.