What are disadvantages of Opening Demat and Trading account with Paytm Money?
- Asked By
- Updated On:14-Jun-2021
- Replies:2
Short Answer
With every stock broker, including the likes of Paytm Money, some disadvantages might be a trade-off in choosing them. These include the unavailability of trading with currency and commodities, trading in futures is still not available, the trading platform isn't robust, etc.
Detailed Answer
Paytm Money entered the stock broker business in 2017 and has undoubtedly created some amount of hype amongst traders and investors in choosing it. However, with Paytm Money, few disadvantages come associated with the stock broker. All of which are given below.
Disadvantages of opening a Demat & Trading account with Paytm Money
- The portfolio updating feature isn't available. Meaning that you will have to update the portfolios manually.
- The recommendations offered by Paytm Money may not be so great. They aren't quite direct and investment-focused compared to Zerodha and other well-versed stock brokers in the country. At times, investment strategies or advice aren't given whatsoever.
- Once the account is created, logging into the account becomes hard. Typically mobile users have no problem, but users may have to reset their password with the web login, which is quite a lengthy process.
- The mobile application, which is currently available on the Play Store, comprises of many glitches. The reviews published on the Play store can give you a brief idea.
- The customer care number is average (as per users response). Primarily you will have to mail your queries to the given email address.
- They don't offer Commodity and currency trading.
- The platform provides no options or ways users and traders can trade in currency and commodities options.
- Paytm Money doesn't offer users, traders, and investors to trade in futures and options. It might be available in the coming future.
- The application through which trades are carried out isn't well built. There are frequent crashes, and when compared to the likes of "Kite" by Zerodha, then Paytm Money is miles behind.
- Switching investment isn't a possibility on Paytm Money. If users wish to switch the Money from one scheme to another, that's not possible.
- The stock broker doesn't provide provision for a Systematic Transfer Plan or Systematic Withdrawal Plan.
- Application crashes are relatively frequent under heavy loads.
- The reliability of the advice they offer is questionable as they have no dedicated research team in sending out such notifications.
- The quality of services that you get on Paytm isn't available on Paytm Money. The application has been significantly optimized with full-fledged features but yet a Work in progress.
Though there might be plenty of disadvantages in Paytm Money, it comes down to personal preference on using the stock broker's services.
Note that the disadvantages can be overlooked, provided the advantages of the stock broker come to use in fulfilling your trading and investing activities. The trading style might differentiate your stock broker choosing preferences, but ultimately, the disadvantages cannot be overlooked.
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Discussion (1)
Angel Broking and Paytm Money both these platforms are popular among traders. But if you are a beginner or if you want to switch to a new trading platform and you are considering choosing one of these two, and then you came to the right place.
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Navneet Chaudhary
1.The portfolio updating feature isn't available. Meaning that you will have to update the portfolios manually. (how is that possible I didn't experience this while investing in Paytm money) 14. The services that you get on Paytm isn't available on Paytm Money (both are different app made for the different reason why Paytm money offer the same service what Paytm already offers 3. Once the account is created, logging into the account becomes hard (I didn't face any problem with opening my account on desktop)