Paytm Money: Trading & Demat Account, Reviews, Charges: 2020

The best part about Paytm Money is in the fact that it carries the brand name Paytm. Now while that provides a huge advantage from a branding perspective, whether it is enough from a functional perspective, we’ll see.

Paytm Money: An Overview

Paytm Money is a mutual fund trading app, facilitating payments through net banking, UPI, OTM. However, it launched its discount broking wing sometime back and is planning to expand its user base towards the stock investors and traders. Paytm Money’s target market happens to be one of the largest population demographics, i.e the young and middle aged. With Paytm Money, the company joints it’s easy to use interface with quality and service standards set by Paytm.

All this while it ventures into the mutual fund app space and further diversifying into the stock broking services in India. Paytm is an Indian company, funded by Alibaba and backed by Ratan Tata of Tata Group.

Paytm Money: Benefits of Account Opening

Here are some of the features and advantages of opening a demat and trading account with Paytm Money:

1. Ease of Use

Paytm’s biggest selling point of its hassle free interface with ease of transactions due to universal availability. Paytm incorporates those brand values in Paytm Money. It is accessible from anywhere, and doesn’t carry a ton of paperwork, and it provides a huge data base of mutual funds and stocks to invest from. Its interface also currently doesn’t sell ads, making it all the more viable, and supports multiple banks making it all the more universal.

2. Track Already-made Non-app Investments

Paytm Money tries to provide a single platform to track all of the mutual fund investments, whether it is made through the app or not. This adds to the ease of access and improves user retention, while also establishing itself a player in major market place.

3. Easy Handling

Paytm money has an innovative systematic mutual fund option, where it uses its one time mandate (OTM). It also provides the option of asset allocation, which basically means that you can sort the mutual funds according to the type of assets that you want them to be invested in, be it equity, debt or a mixture of both.

It also provides an option to press pause in your SIP payments, in case you’ve had an expensive month. You can also choose to decrease or increase the amount of SIP, based on your financial viability. The major selling factor in all of this is in the fact that you don’t have to go through a ton of process every time you want to make even a little change in SIP, making Paytm all the more attractive as an investment option.

4. Multiple Plans and that too cheap

Generally classified, there are two kinds of plans for Mutual Funds – Regular Plan and Direct Plan. Paytm Money prides itself to be a direct plan provider, which means you don’t have to go through someone else for your mutual fund needs, you can directly select and invest in mutual funds that you want, that you decide meet your investment criteria. Paytm money’s SIP plans also start from as low as 100 rupees, which can be increased at account holder’s discretion.

Paytm Money Trading & Demat Account: Limitations

1.You can't trade in derivatives i.e. F& O segment yet.

2.You don't have the option of Commodity and Currency trading with Paytm Money. May be very soon we'll have it.

3.Being a fairly new player in the stock broking industry, Paytm Money is still to test and prove itsself for high volume transactions and market fluctuations. While popular discount brokers like Zerodha have set trading platforms like \Zerodha Kite\ that have been tried, tested and performed well over the years.

So, it will be good to see how an emerging broker grows amidst a number of existing key stock brokers in India.

Paytm Money Stock Broking Review

For stock broking serices, as this digital investment platform grows in this area, there's more to hear soon about Paytm Money Securities in the coming days. It can give a tough competition to the existing discount brokers, once it launches a full-fledged trading platform to promote its brokerage services. Let's see how this popular brand establishes itself in the stock broker's world.

Paytm Money Account Opening Process

Like other stock brokers in India, there's a simple process to open a demat anf trading account with Paytm Money.

These are the steps you need to follow if you want to open an account with Paytm money.

  1. Complete the form by pressing the “Open Demat Account” button
  2. A Paytm executive shall call you & you'll receive a link on your registered Mobile No. & Email.
  3. You have to click the link in email or sms and complete the KYC process.
  4. Next, upload documents required for verification like PAN, Aadhaar etc.
  5. After documents get verified, your account will be opened

Paytm Money Account Opening Charges:2020

ChargeAmount
Demat Account Opening Charges₹0 (Free)
Trading Acc Opening ChargesRs. 200 (One time Digital KYC) + Rs. 300 Account Opening Charges
Trading Account AMC₹0 (Free)
Demat Account AMCAnnual Platform Fees of Rs.300

Paytm Money Account Brokerage Charges: 2020

Paytm Money :Basic Plan Brokerage Charges

ChargeAmount
Plan NameBasic Plan
Equity Delivery₹0
Equity Intraday0.05% of turnover or ₹10 whichever is lower
Equity Futures0.05% of turnover or ₹10 whichever is lower
Equity Options0.05% of turnover or ₹10 whichever is lower
Currency Futures0.05% of turnover or ₹10 whichever is lower
Currency Options0.05% of turnover or ₹10 whichever is lower
Commodity Options0.05% of turnover or ₹10 whichever is lower
Mutual Fund

Paytm Money Margin/Exposure

Paytm Money interaday, delivery, F&O, currency and commodity margins/exposure

SegmentTrading Margin
Equity DeliveryUpto 4x
Equity IntradayUpto 20x
Equity FutureUpto 3x
Equity OptionsUpto 5x
Currency FutureUpto 2x
Currency OptionsUpto 3x
Commodity FutureUpto 3x
Commodity Options

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.

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.

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.

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.

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.

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