What are Paytm Money Brokerage Charges? Stock Trading
- Asked By
- Updated On:22-Jun-2021
- Replies:2
Short Answer
Paytm Money, an emerging stock broker offers a Demat trading account to investors and traders at a fairly reasonable cost. In reality, nothing comes free of cost, may it be brokerage services or any other for that matter, you'll be charged one way or the other. So, let's see what all charges you have to bear while trading through this stock broker in India.
Detailed Answer
So, here we have described in detail the charges of Paytm Money brokerage such as Intraday, Delivery, Derivatives (F&O), Commodities and Currency.
Paytm Money Brokerage Charges
1.Brokerage fee for equity delivery is Nil.
2.Equity Delivery is 0.05% of turnover or ₹10 whichever is lower.
3.For equity future and options brokerage charges is 0.05% of turnover or ₹10 whichever is lower.
4.For commodity options and currency F&O, brokerage charges are 0.05% of turnover or ₹10 whichever is lower.
5.For doing trading with Paytm money, a marginal amount of zero can be maintained.
Paytm Money Other Charges:
Here the comprehensive review of other charges:
1.Exchange Turnover Charges is 0.00325% of turnover for NSE and 0.003% of turnover for BSE.
2.GST charged 18% on Brokerage and Exchange Turnover Charges.
3.For Intraday Security Transaction Charges (STT) is 0.025% of turnover on sell orders.
4.For Delivery Security Transaction Charges (STT) is 0.1% of turnover on buy and sell orders.
5.SEBI Turnover Fees is 0.0005% of turnover.
6.For Intraday Stamp Duty is 0.003% of turnover on buy orders.
7.For Delivery, Stamp Duty is 0.015% of turnover on buy orders.
8.Trading Account AMC (Account Maintenance Charges) is Nil.
9.Pledging Charges is Rs. 32 (including the depository transaction charges)
10.DP (Depository participant) charges is Rs. 10/- per scrip per day
11.Payment Gateway ( Net Banking) is Rs. 10/-
12.Payment Gateway (UPI) fee is Nil.
All these charges are the very negligible amount so it does not affect profit or loss of trading.
Paytm Money Exposure/Leverage
Paytm offer its customers with the following margin values:
1.The higher exposure offered by Paytm Money is in the category of Equity Intraday and i.e. up to 20x.
2.The lower exposure offered by the Paytm Money is in the category of Currency Future and i.e up to 2x.
3.The other exposures offered by the Paytm money in different categories such as Equity Options up to 5x, Equity Delivery up to 4x, and Equity Futures up to 3x.
If we compare the brokerage charges of Paytm Money with other full-service brokers like Angel Broking, ICICI Direct, Sharekhan etc., it's relatively lower. Even it is very competent in the category of discount brokers.
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Discussion (1)
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.
Paytm has added its name to the stockbroking industry all through its new platforms “Paytm Money.” The platform was rolled out to customers earlier in September 2020 and had since then exploded amongst traders/investors to see the offerings set up by the company.
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.
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.
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.
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.
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 can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.
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.
The differences between the two stockbrokers might be plenty, but the better one between them comes down to the differences they sport. Let’s learn a bit more about them and understand what each one has to offer before making a final decision.
Harshil Patel
Being a new player amongst the country's stockbrokers, Paytm Money is offering relatively lower brokerage charges compared to its competition. It's to lure in more users onto the platforms. However, it will need to improve the tools required for trading in the stock market. Its competition has already rolled out highly accurate tools to help its user base to have the best trading experience. let's wait and watch what Paytm has to offer for its customers.