Paytm Money is a branch of the Fintech giant Paytm that is solely dedicated to investments in the capital market. Paytm is one of the most successful fintech start-ups in India dominating the online transaction space. The post-demonetization period was one major reason behind the Indian public shifting to digital mode of payments.
Today Paytm has over 350 million users on its platform that avail its various services ranging from payments to booking train tickets, getting mobile recharges, and even attending virtual events!
Investments however are still an area where the Indian masses are skeptical about when it comes to digital spaces. So, here we will analyze the Paytm app as a medium for wealth management advice and investments.
Paytm Money: An Overview
Paytm Money is a branch of the domestic name Paytm. It offers three main services namely Mutual Fund investments, stock market trading, and investment in NPS retirement funds. Launched by Pravin Jadhav in 2017, the stock broking segment is rather newly launched and is classified under the discount broker category. Paytm money now has a customer base of more than 5 million.
The company is headquartered in Bengaluru and is affiliated with more than 150 banks for auto-payments with physical mandates. It is affiliated with both CDSL and NSDL depositaries.
The trading segment offers a wide range of financial products from equities to commodity and currency trading. The company does not require any margin to be kept, however, the minimum brokerage charges apply. The annual maintenance of the Demat account costs Rs. 250 with Paytm Money.
To invest in Mutual Funds, there are two ways. The regular plan and the direct plan. In a regular plan, investment is made through a distributor or agent. They charge a certain commission from the investment made in return for their advisory and services. It can sometimes be costlier than a Direct plan where an investor purchases securities from the MF company directly. Through Paytm money, you can buy such direct plans.
Paytm money: Features
Here are some features of this trading application that you might like to read:
1. A 3-IN-1 in one account:
Paytm money offers to create a three-in-one account that links the Demat account, Trading account and Bank account all in one for seamless transactions.
2. Intraday and IPO:
Whether you are a swing trader, intraday trader, or heavy trader, Paytm money caters to the needs of all. They also have an IPO section with details about the Initial public offer and a platform to trade it.
3. Exclusive RM:
Paytm money assigns are a Relationship manager exclusively to each to its users who guides them in the entire process. This first hand in-person touch helps an investor easily navigate through all of these investments or trades.
4.High Trading Margin:
In comparison to other discount brokers, Paytm money gives a high trading margin of up to 20x on securities. For equity delivery, the margin is 4 times the amount, for equity futures and currency options the margin is 3X, and for Equity options, it is 5x.
5. Well-organized Interface:
The app is built on a user-friendly interface with the oj=bjective of making investments easy. From creating an account to One-click payments, the overall functionality is suitable for even a beginner in finances. The portfolio is created for smooth tracking of investments, comparing prices, and creating a watchlist for the same. You can create up to 5 watch lists on a single platform.
Paytm Money: Considerations
There are certain aspects in which the app lacks competitiveness. They are listed below:
1.Paytm money charges an account opening fee of Rs.300 and an additional Rs. 300 for Annual maintenance of the account. It is comparatively costlier than other discount brokers.
2.The advisory system isn't that strong. They do not provide researched reports and data on the market. However, some free stock tips are given on the app. The fundamental and annual reports are soon to be added to the application.
3.The customer support service is not 24/7 and the customer care number is not toll-free.
How to open an account in Paytm Money?
To open a trading account with the Paytm money app, follow the following steps:
1.Download the Paytm application on your smartphone
2.On the right-hand corner, you will see an option to sign up
3.Enter your email r mobile number. The application will send an OTP to it.
4.When you enter the OTP your account will be launched.
5.It will be followed by the KYC process.
6.Provide the necessary documented such as Aadhar card, Pan card and submit,
7.An executive or RM will get in touch with you for further details.
Paytm Trading Terminal
Paytm money was initially for only Mutual Funds investment. However, this year itself it launched the stock trading feature with the objective of seamless trading for one and all. Varun Shridhar, the newly appointed CEO of Paytm money announced that they even plan on launching derivatives trading soon.
This portal is being made very economical with trades for a brokerage as low as RS. 10 per transaction. The application is available on both Ios and android stores and contains comprehensive historical data about every company on the trading list including annual reports and researches.
The users can set alerts for up to 50 stocks at once and receive notifications for the same. Automation of orders can also be done by setting a buy/sell order on a weekly or monthly basis.
Advanced charting features are available for the complete and right research of the investor. users can place bracket orders using the same as well.
Additionally, The Paytm Money trader comes with a two-step verification process for the safe trading experience of the users. They can view the LTP, ATP, highest bid, and other important values using the terminal.
Paytm Money App: A Final Review
Paytm has now become a domestic name in the Indian fintech sector. With thousands of people using the trading and investment application on an everyday basis, it has continued to expand from a mere payments application to investments, stock trading, and much more.
Although Paytm is big brand name, but Paytm Money Stock Broking is still to prove itself in the growing list of best stock brokers in India. And, we'll definitely get more feedback to share on Paytm Trading App as well in the coming days. If you have something to add upon, feel free to share with us.