Is Paytm Money Safe and reliable Broker for Stock Trading & Investing?
- Asked By
- Updated On:22-Jun-2021
- Replies:4
Short Answer
Yes, it is completely safe to invest your money in the stock market using Paytm money App. In fact, PayTm has come up with stock broking services recently and trying to establish itself in the said field. And, to give tough fight to top existing players it has to keep its services up to the mark. Paytm Money made a big name in mutual fund investment industry and now it's time to see its performance in the stock brokers' world.
Detailed Answer
Paytm is one of the top Fintech start-ups that transformed into a unicorn company within the initial years of its foundation. The founder and CEO Vijay Shekhar Sharma made it to the list of Forbes' global billionaires this year. A large number of people now use Paytm for everyday transactions. The use of digital currency came into full action after the demonetization move of 2018 and gained additional momentum after the Covid-19 pandemic.
However, people are still skeptical about the use of such apps for trading and investment purposes. We answer some FAQs related to investing money via the Paytm money application below:
1. Is investing through Paytm Money App safe?
Of course, it's safe to invest through Paytime similar to other discount brokers in India. However, the standard market risk prevails in any medium you use. Paytm has recently partnered with an independent research firm 'Morningstar' and launched an offer wherein Paytm brings a portfolio of 5 mutual funds according to the risk appetite of its investor. It measures the risk-taking capacity by the risk sustainability assessment feature. It is also one of the leading conglomerates of India, so the chances of fraud or risk of losing your money to the app are negligible.
2. I already have a KYC with Paytm. Do I need to get another for Paytm money?
Yes, if you are new to MF investments, Paytm money would require a separate verification other that the Paytm payment bank account.
3. Is there any commission or brokerage that I pay to Paytm money?
No, investing using Paytm money requires zero charges. no middle-man commission or brokerage is charged from the investor. All you have to do is install the application and get started!
4. What payment methods does Paytm money support?
You can use any UPI application such as PhonePe or BHIM, net banking, or any debit card of your verified bank account for making transactions on Paytm money. Note that you cannot use the money in your Paytm wallet for this purpose. Also, the use of credit cards is forbidden by the company. Alternatively, you can set up an auto-pay option. It enables you to make one-time automated bank payments and perform one-click investments.
5. Can I use Paytm money if I already invest in Mutual funds?
Paytm money provides a direct portal to invest in Mutual funds without any Financial advisor or broker intermediary. This way the investor can save up commission costs. It provides risk assessment tools, research on MFs, and suggests you the top ones according to your needs. So if you invest with Paytm money you don't need any other source. And even if you don't, you can use its tools and reports to research what's best for your financial health.
6. Can I invest in Stocks with Paytm Money?
Yes, you can invest in stocks with Paytm Money now. Stock Broking is now live on this app and you can direct invest in stocks. Isn't that great news! \Paytm Money Stocks\ is the latest offering in the bucket of services offered by Paytm Money in India. While the cash delivery trades are free, you have to pay Rs.10 per executed trade for intraday trading.
Paytm Money App: How to get started with it?
It is pretty easy to start with. Especially if you are new to the world of Mutual Funds and investing. All you have to do is install the Paytm Money app, finish your KYC (know your client) process by providing some basic details and documents and it will guide you from thereon. It will access your risk profile, suggest suitable funds, and help you track your investments later on. Have you tried the Paytm Money app? Do share your feedback and experiences thereon.
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Discussion (3)
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To open a Paytm Demat Account you do not need to make a lot of efforts. You can simply do it online which spares you from standing in a long waiting queue in the branch of the broker house. These days online and offline account opening has become all the more easy.
There are plenty of advantages in choosing Paytm Money to open a Demat account and trading account with the stock broker. Some of the advantages include robust trading applications with web integration, 190+ banks supported for an easy transaction, net banking facilities, a low brokerage fee of 20 rupees, etc.
Yes, Groww app is completely safe for mutual fund, stock investing and trading. As a popular mutual fund investment plaftorm, Groww established itself quite well in the past few years. Now, it has also enetered the stock broking space so it's really good to see new entrants amid existing top discount brokers in India.
You can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.
When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.
ICICI Direct and Paytm Money are both stockbrokers with a high customer base and offer different tools and platforms for executing trades. But then ICICI Direct comes on top given its decades of experience as a full stockbroker and its reliability through its trading tools and investing tips. Paytm Money has the recognition but still has to strive harder to make a mark in the stockbrokers' world in terms of services and trading tools.
You wish to know if Paytm Money is better that Zerodha or it's the other way round. Zerodha being a leading discount broker in India has been there for overe a decade now. While Paytm Money already established in mutual fund investment arena, but a fairly new entrant in stock broking industry. So, let's compare the features and discuss few details on each of them.
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.
Yes, Zerodha is much better than Paytm money, thanks to the discrete offerings that Zerodha brings to the table. Zerodha has been in the stock brokering business for a decade whereas Paytm money was founded in 2017. The experience, knowledge, tools, and trading options provided by Zerodha are quite prominent and useful when compared to Paytm money.
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.
Harshil Patel
Yes, the trading platform is quite reliable and robust. Since its days a mutual fund’s investment platform and money transfer portal, it has implemented next level security encryption software’s to make it a safe trading platform.