Zerodha vs 5Paisa: Compare Brokerage, Charges, Margin & More!
Zerodha vs 5Paisa – Stockbroker Comparision: Zerodha and 5paisa are two of the biggest discount brokers in India. In this article, we are going to compare Zerodha vs 5Paisa by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, and more.
This comparison between Zerodha and 5Paisa will highlight the major differences between these two brokers to help you find the best between 5paisa and Zerodha, based on your preferences.
Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It has over +2.2 million clients that contribute to over 15% of daily retail trading volumes across BSE, NSE, and MCX.
In terms of brokerage charges, Zerodha offers a zero brokerage for delivery equity investment & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a flat brokerage of Flat ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.
5 Paisa Introduction
5Paisa is a discount broker that provides you the platform to trade in stocks, futures, and options at the lowest cost of Rs 20 flat per trade, even if you trade for Rs 10 Crore.
It is headquartered in Mumbai and is a part of India Infoline (IIFL), a leading non-banking financial institution in India with experience of over two decades (initially incorporated in 1995). 5paisa was re-launched with a new brokerage model for online retail broking services in late 2016. Later, it got de-merged from IIFL so that it can be listed on the stock exchanges. 5Paisa Capital started trading on NSE/BSE in November 2017, making it the first such listed financial digital marketplace.
5 Paise Capital provides a platform for all financial products including equities, derivatives, mutual funds, commodities, AIFs, bonds & debentures, insurance, and personal loans. The account opening process for 5Paisa is totally paperless based on Aadhaar. 5Paisa provides the trading facility in mobile, browser, and desktop platforms.
Zerodha vs 5Paisa Comparision:
|About||Zerodha is the largest stockbroker in India with +1.5 million clients and +10% of daily retail trading volumes across NSE, BSE, MCX. Located at Bangalore, Zerodha offers zerod brokerage on delivery trading and a flat rate of 0.03% or Rs 20 per executed on all other segments.||5paisa.com, second largest discount broker in India, is part of IIFL group (India Infoline), India's leading financial services company. It offers a flat brokerage of Rs 20 per trade for its clients.|
|# of Active Clients on NSE (Nov 2019)||9,09,008||1,06,280|
|Broker Service||Discount Broker||Discount Broker|
|Supported Exchange||NSE, BSE, MCX, NCDEX||NSE, BSE, MCX|
|Brokerage Summary||Free for Delivery Trading and flat charge of Rs 20 for all other trades||Rs 20 Per Trade|
|Servies offered||Equity, Derivatives, Currency, Mutual Funds & Commodities||Equity, Derivatives, Commodity, Currency, Mutual Funds|
|Account Opening Charge||Rs 200||Rs 650|
|Commodity Trading Opening charge||Rs 100||Can't trade in commodity|
|Annual Maintenance Charge||Rs 300||Rs 45 per month (only for months when you trade)|
|Trading Platform||Kite 3 Web baased trading platform, Kite Mobile, Kite Connect API, Console, Pi, Sentinel, Coin||Investor terminal, trader terminal, 5 Paisa Trade Station|
|Equity Delivery||Free||Rs 20 per trade|
|Equity Intraday||Rs 20/ trade or 0.03% whichever is lower||Rs 20 per trade|
|Equity Future Charges||Rs 20/ trade or 0.03% whichever is lower||Rs 20 per trade|
|Equity Options Charges||Flat Rs. 20 per executed order||Rs 20 per trade|
|Currency future charges||Rs 20/ trade or 0.03% whichever is lower||Rs 20 per trade|
|Currency options charges||Rs 20/ trade or 0.03% whichever is lower||Rs 20 per trade|
|Commodity Charges||Rs 20/ trade or 0.03% whichever is lower||Rs 20 per trade|
|Minimum brokerage fees||0.03% Minimum||Flat charge of Rs 10 per trade (for higher plans)|
|Call & Trade Charges||Rs 20 + 18% GST Order||Rs 100/ call|
|Equity Margin Delivery||No margin for delivery - Cash and carry||Upto 4x for equity cash|
|Equity Margin Intraday||Upto 20x (Based on stock)||Upto 20x|
|Equity margin futures||Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin||Intra-day: 3.5x - Carry forward: 1x (no margin)|
|Equity margin options||Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin||Intra-day: 1x - Carry forward: 1x|
|Commodity Margin||Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin||NA|
|Currency futures||Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin||Intra-day: 1 time - Carry forward: 1x|
|Currency Options||Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin||Intra-day: 1 time - Carry forward: 1x|
|3-in-1 Account||Yes, with IDFC Bank||No|
|Research & Tips||No||Yes (for higher plans)|
|Span Margin Calculator||Yes||Yes|
|Training & Education||Yes||Yes|
|Margin Against Shares (Equity Cash)||Yes||Yes|
|Margin Against Shares (Equity F&O)||Yes||Yes|
|Other Features||Direct Mutual fund investments, Kite APIs||Mutual Fund Investments, Research reports|
|Pros||Zero brokerage charges for delivery trading, Simple and flat brokerage model in all other segments, Excellent trading platforms, Easy & fast online account opening, Direct mutual fund investments, Maximum brokearge of Rs 20||Cheapest broker, flexible brokerage plans, Research reports available (but at extra cost)|
|Cons||No stock advisory or research reports||Call and trade Rs 100 per call, Higher charges of Rs per transaction on demat|
|Promotion/Offer||Free delivery equity trading and Rs 20 or 0.03% wihchever is lower brokerage charge on all other trades||Right now - No Opening Charges, Annual maintenance charges waived|
|Website||Quick Link to Open Account||Quick Link to Open Account|
*Disclaimer: All pricing data was obtained from the published stockbroker’s web site as of 02/01/2020 and is believed to be accurate, but is not guaranteed. It can vary from time to time depending on the active campaigns by the brokers and hence recommended to refer to the broker’s website for the latest updates.
Both Zerodha and 5Paisa offers low brokerage and fast trading platforms for their clients.
Zerodha, being the biggest discount broker in India with over 22 lakh clients obviously adds trust and brand value. Moreover, initiatives like educational facility (Varsity), investment in IPO’s from the same dashboard, free direct mutual fund investments, etc create more value for its clients. Moreover, Zerodha has got a bigger range of partner products to help traders and Investors like Streak, Sensibull, Learn app etc.
On the other hand, a few notable advantages of 5Paisa over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t. However, this facility by 5Paisa is offered only to its clients with higher plans. In addition, the multiple flexible brokerage plans offered by 5Paisa can also be a little advantageous for volume traders.
In conclusion, both these brokers have some advantages and disadvantages over others. Zerodha with its evolved trading app and partner platforms vs 5Paisa with its flexible brokerage plans and advisory services. Nonetheless, if you see from the broad perspective, Zerodha offers a little more benefits compared to 5Paisa for independent investors and traders who are not looking for advisory and are happy with a single discount brokerage plan.