A detailed review of 5 paisa

5 paisa Review

5 Paisa

5 Paisa, part of the IIFL group is an online financial services provider. It offers broking services, mutual funds, and insurance on its platform. It offers trading in equities and derivatives, it doesn’t offer commodities.

The main selling point of 5 Paisa is that they offer all financial products on their platform.

Margins

Check out the detailed margins here. Almost all the established discount brokers provide margin and brokerage calculator tools but 5 paisa does not. This is negative a because the problem of transparency that plagues traditional brokers remains.

  1.  Up to 15 Times margin for Intraday & 5 Times for Delivery(Interest charged)
  2.  Up to 2 Times for Intraday in Futures
  3.  Up to 2 Times for Intraday in option (Only on selling side)

Platforms

5 Paisa provides a platform named Trade Station for the Web and desktop. It provides a mobile application for Android.

Web Platform.

5 Paisa Trade Station is the flagship platform that it offers. To sum it up this is an extremely disappointing platform considering the fact that 5 Paisa is part of the IIFL group which has been the broking business for decades.

Describing this platform as rudimentary at best would be an overstatement. All it does is offer a set of basic functionalities with nothing in particular worth highlighting.

Charting

Charting is pretty much a non-existent feature in 5 Paisa except for a basic line chart. There are not candle charts or indicators. So if you are a trader who got interested because of 5 Paisa’s brokerage, that is the only highlight of it.

Desktop

The desktop offering of 5 paisa is similar to NEST and offers the basic functionalities. There are no particular highlights as such.  The tools seem sluggish and takes a good bit of time to startup. Discovering the functionalities can be irritating. The user experience is terribly unintuitive. If you are a regular trader and depend on using candle charts this is the only platform which offers it along with the mobile app. The charting experience in the desktop tools leaves a lot to be desired.

Mobile App

The mobile application looks decent and provides one-stop access to trading, mutual funds and insurance.

You can create 3 watch lists with 50 stocks each.  The application offers basic charting functionality with 4 indicators. The only advantage we could see is that you can access MF’s, insurance and stocks from one place. Although they say that there are no charges for their MF platform, we haven’t explored the hidden side and same goes for insurance.

Where 5 Paisa falls short

5 Paisa tries to offer a whole lot on its platforms with nothing, in particular, being a highlight. The trading platform does not offer any of the things that a regular trader would need.

Bottomline

5 Paisa is suited to the investing and saving crowd who wish to manage all their investments and personal finance obligations from a single login. We wouldn’t recommend 5 Paisa to traders or even investors for that matter because it really doesn’t offer even the basic tools that traders and investors have come to rely on.

Pros

  • A single dashboard to manage investments and insurance.
  • Low brokerage.

Cons

  • Poor trading platforms
  • Charting is extremely poor
  • The mobile app has a lot of redirect links, that end up ruining the experience.

Here is how 5 paisa stacks up against Zerodha and Upstox.

Review Of Upstox

Upstox Review

Profile

Upstox formerly RKSV Securities is India’s second largest discount broker with over 13,000 active clients.  Started in 2012 this discount broker is funded by marquee names such as Ratan Tata, Kalaari Capital, and others. It currently contributes to over Rs. 7,000 crores in daily turnover on NSE.

This is an in-depth review of Upstox and its trading platforms. Click Here for the Upstox profile.

Pricing

Upstox follows has a simple pricing structure. It offers free equity delivery trades and charges a maximum for Rs.20 for equity intraday, F&O, and commodities. Upstox offers a brokerage calculator which makes it easier to calculate the charges.

Pricing Verdict: Upstox much like its bigger peers offers a good deal. Free equity trading will be a good draw for beginners.

Upstox is best suited for:

  • Beginners
  • Frequent traders
  • Mobile users

Margins

For equity intraday, Upstox provides margins up to 20x on F&O stocks and up to 2x on other stocks.

It provides margins up to 6X for Intraday futures. It provides up to 4x for selling options and 1X for buying using MIS, bracket and cover orders in intraday.

It provides margins of up to 3X for all commodities.

Upstox provides margins across segments only for intraday and does not provide leverage for equity delivery and overnight positions similar to other discount brokers. There is no indication yet if Upstox will come out with margin funding, but this is the margin policy at present.

Upstox provides a margin calculator to make it easy for traders to calculate their margin requirements.

Trading platforms

Upstox provides trading platforms for desktop, web, and mobile.

Upstox Pro Web

Upstox Pro is a web trading platform which was custom developed in-house. It is a lightweight platform with unique widgetized workspaces and advanced charting.

With their latest update, Upstox has introduced workspaces which can customize to users linking with widgets. Sections such a watchlist, charts, books have been made into widgets, which can be placed anywhere in the workspace.

The charting is a breeze in Upstox Pro. There are over 100+ technical indicators and 10 drawing tools. One good feature if you are a regular trader is that you can watch multiple charts side by side.

 Since watching charts in a different workspace and switching to another workspace to place an order is not optimal they will soon be launching a feature to place orders from charts.

Our verdict

Upstox Pro is a beautifully designed web platform; largely unimposing for beginners and resourceful for regular traders. It might take a bit of getting used to for beginners, it is not as easy as Zerodha Kite, the most significant competition for Upstox. One potential downside to this widgetized workspace style is that the experience on small screens won’t be the best.

Mobile

The mobile application follows a similar design scheme as the web version.

But there were some quirky things we noticed in the mobile app. Historical charts are available only in the landscape mode and not In the portrait mode. Constantly switching between two views can ruin the user experience here. Charting is easy and fast on the app and its easy see the amount of work put in by the developers.

Bracket order or OCO (One Cancel The Other) is not available. This can be a deal breaker for people who trade on the go.  If you are a mobile user then you will love the app minus the quirks. It also has a tab which shows corporate actions related to the stock and a fundamental tab data with some basic parameters. Apart from these kinks, the mobile app is a decent platform from Upstox compared to clunky, cluttered and outdated apps of other brokers.

 

Desktop

Upstox offers NEST desktop tool. NEST can best be described as a reliable workhorse which gets the job done. NEST just provides basic charting, you get 22 days of intraday charts and 1 year of historic charts. On this count, it is a disappointment.

Platforms verdict: While the web and mobile platforms are beautifully designed the desktop tool is a bit of a letdown for hardcore traders.

Mutual Funds

Upstox recently launched its own MF platform, but disappointingly it is a regular Mutual Funds platform. In the long-run direct mutual funds always give higher returns because of the absence of any intermediaries and the ensuing savings because of that.

Where Upstox falls short

A underwhelming desktop offering is a negative for a brokerage that has built such amazing web platforms.

Upstox still offers regular mutual funds and not direct mutual funds. By investing in regular mutual funds investors pay up to 1.5% upfront and 1% every year for as long as they remain invested which in the long run makes a huge difference.

Bottomline

Upstox is a solid choice with its great suite of platforms and tools. If you are a first-time trader you will most likely be drawn to the beautiful platforms at zero brokerage. Although the web platform is well crafted it takes a bit of getting used to and does not look the best on smaller screens. Overall it doesn’t matter if you are a beginner or an experienced trader if you are looking for a broker Upstox should be in your shortlist.

Pros

  • Great pricing
  • Well crafted platforms
  • Tools such a margin and brokerage calculator
  • Responsive support and learning resources
  • Easy to get started with Aadhar based signup.

Cons

  • No mutual fund platform yet
  • Turnover charges on futures and options is higher than competitors
  • The online trading platform doesn’t suit small screens.

Here is a comparison of India’s 3 biggest discount brokers. Compare pricing, active clients, financials and more.

Upstox Vs SAMCO Vs Zerodha

 

Review of Zerodha

Zerodha Review

Zerodha is the pioneer of the discount broking concept in India and is the largest discount broker in terms of active clients. It is well known for creative advanced and intuitive platforms and it’s transparency.

Pricing

Zerodha has very a simple pricing structure. They offer free equity delivery trades and charge a maximum for Rs.20 for intraday equity, F&O, and commodity trades. Their brokerage calculator makes it quite easy to calculate charges; again a concept introduced in the country by Zerodha.

Pricing Verdict: The Zerodha pricing suits everyone; be it a beginner, or a hardcore trader. Free equity trading will be a good draw for beginners.

Zerodha is best suited for:

  • Beginners
  • Frequent traders
  • Mobile users

Margins

For equity intraday, Zerodha provides margins up to 20X on F&O stocks and up to 2X on other stocks.

They provide margins up to 2X for intraday futures and shorting options and 1X for buying using MIS, bracket and cover orders in intraday. They provide margins of up to 2X for all commodities.

Zerodha provides margins only for intraday across all segments; none for equity delivery and overnight positions similar to other discount brokers. They’re expected to come out with margin funding soon.

Zerodha also provides a margin calculator to make it easy for traders to calculate their margin requirements. You can use this tool to calculate your comprehensive margin requirements for intraday and delivery/overnight positions.

Platforms

Zerodha is best known for its intuitive platforms. They offer Kite and online trading platforms, Kite Mobile for Android, Kite Lite for IOS and Pi for the desktop.

Kite

Kite is a minimal online trading platform which is easy to use and easy on the eye.

Kite dashboard

Kite charting

The charting experince in Kite.

Whether you’re a beginner or a seasoned trader, Kite is the platform for you. It is a pleasure to use it since it is polished and has no clutter whatsoever. You can create multiple watchlists, analyze and compare charts, share them and more. Kite allows you to create 5 market watches and has over 100+ technical indicators. It offers bracket and cover orders which have become common these days but the limit cover order which is available on Pi, the desktop tool, is not available on Kite and the Kite mobile app yet.

Mobile App

Zerodha offers Kite on mobile and it pretty much resembles the web version. Although the app looks beautiful, you get a feeling that it’s still a work in progress. The user experience is a pleasure, no complaints on that front.

Charting is as good as it can be on a mobile device but one feature that regular traders would immediately notice is the absence of charting tools on the app. Lack of push notifications is also a downside because some people tend to get confused with the order status. The app doesn’t allow you to withdraw funds which is a disappointment.

Desktop

Zerodha offers a desktop tool called Zerodha Pi. Essentially built on top of tried and tested Nest. Pi has an impressive array of features. It offers advanced charting with over 80+ indicators.

Pi marketwatch

Pi charting

Pi Highlights

Expert advisors: You can code your own strategies in Tradescript and save them in the platform to generate buy and sell signals.

Backtesting: Pi also has a backtesting module to test your strategies.

Pi Bride: You can connect platforms such as Ami Broker, Ninja Trader, Meta Trader etc.

Scanner: Pi also has this handy feature that allows you scan for trading opportunities.

With such unique feature Pi is definitely one of the best desktop platforms in India.

Cons: The biggest drawback we see in Pi is the lack of stability. Users seem to experience niggling issues with the application. This aside Pi is one of the best platforms if you are a hardcore technical trader.

Zerodha Quant

As the saying goes “Know yourself to improve yourself”.

Quant is one of the best platform Zerodha has ever created. It is your personal trading analytics tool which essentially plots all your trades and so that you can learn by analyzing your good and bad trades.

Mutual Funds

Zerodha recently launched their direct mutual fund’s platforms called Coin. You can now invest in the mutual funds without paying any commissions. The expense ratio is a percentage of the total assets used for managing a fund’s expenses, such as advertising, operational expenses etc. The expense ratios in regular funds will be higher because of the commissions paid t0 the distributors by the AMCs. In the case of a direct fund, you will be dealing directly with the AMC and there won’t be any intermediary involved, so the expense ratios will be lower. In the long run, this translates to higher returns with direct funds.

With Zerodha Coin you can customize your SIP’s, compare funds, do historical analysis etc. You can also have a flexible SIPs wherein you can play pause your periodic investments whenever you want without any hassle.

Zerodha Coin direct mutual funds

Where Zerodha falls short

Overall Zerodha is undoubtedly one of the best brokers in India. They seem to have hit a sweet spot in terms the cost and the benefits they offer. Having said there are a few thing missing.

  • It is not possible to apply for an IPO directly. Clients have to visit a bank or apply via Applications Supported By Blocked Amount (ASBA).
  • Zerodha Q their current back office is a pain to use, it keeps crashing constantly. The good thing is that their CEO has committed to replacing the old system in a couple of months.
  • Margin funding is a sorely missed product at present.

The final word

Zerodha being the original pioneer of the discount broking model in India is definitely the real deal. They have hit a sweet spot in terms the cost and the benefits they offer. No other broker is even comparably close when it comes to innovating. It doesn’t matter if you are a beginner or an experienced trader, Zerodha should be at the very top of your shortlist. Their learning initiatives such as Varsity, TradingQnA, and Educate are the only comprehensive initiatives towards investor education in India.

Pros

  • Great pricing
  • Well crafted platforms
  • Tools such a margin and brokerage calculator
  • Unparalleled learning resources

Cons

  • No margin funding
  • Not possible to apply for an IPO directly

Zerodha vs Samco and Upstox