Zerodha vs 5Paisa: 6 Comparison to choose the Better one
- 29 July 2020 | 558 Views | By Abhinav Mishra
The last four to five months have added up a trading boom for online brokers. The reasons behind the boom are lockdown which forced people to stay at home and a volatile stock market. A lot of people got back to trading activity and many new accounts have opened. If you are looking to open an account for trading, it is very important you chose a good broker. A little effort up front can save you money in the long run. This article gives you best 6 comparison on Zerodha vs 5Paisa which will make your efforts to choose between two of the best trading platforms in India – Zerodha and 5paisa.
Zerodha is the first stockbroker in India to provide the discount broking model and it helps you trade/invest in Equity, Currency F&O, Equity F&O, and Commodity F&O. Zerodha provides you one of the best products and services for value investing and trading like Screeners, Sensibull, and Stock reports. It now has the largest number of customer base, it has close to 1.6 million active clients. The company had made bold moves right from the start – introducing a flat-fee based trading experience.
What is this 5paisa.com?
5paise is a public company and promoted by IIFL founders. It was started in March 2016 and at present is among the top brokers in India. 5paisa online trading is available in commodity, equity, and currency at BSE, NSE, and MCX.
Which is better Zerodha or 5paisa?
Now let us compare the two platforms:
Ease of opening the account
Both Zerodha and 5paisa has an easy account opening process. The process is simple and straightforward on both platforms. You need to provide your personal details like PAN number, Date of Birth, and Aadhaar number followed by your bank account details. Also, you will need to upload your photo, Aadhaar card and canceled cheque. You can choose your plan and make a payment. You can e-sign your form on 5paisa and there is no physical document required. For Zerodha, you will have to courier the PoA (Power of Attorney) to their office.
Though the process is almost the same on both platforms, Zerodha has a better interface to offer. However, if the documents provided are all in place, your account will be activated faster on 5paise.
Account opening charges/ Plans offered
Account related charges are one time charges or annual charges that discount broker charges you for using their platform.
If you open an account with 5paisa, you can choose one of the three plans they have on offer.
Optimum plan – This plan is best for you if you are a beginner. You don’t have to pay any amount for using 5paisa. Under this plan, you will be charged flat Rs 20 per order.
Platinum Plan – It is for investors and has a monthly fee of Rs 499 and if you chose this plan you will be charged Rs 10 per order.
Titanium Plan – This is a plan for pro investors and comes at a monthly charge of Rs 999 and has no per order charges.
Zerodha on the other hand does not offer you a plan option. They charge you Rs 200 for online account opening. They charge you Rs 20 per executed order.
So 5paisa gives you a trading platform for free if you are a beginner while with Zerodha you have to pay Rs 200 irrespective of your purpose of using the platform.
1. Transaction Charges
|Equity Delivery||0.0035 %||0.00325 %|
|Equity Intraday||0.0035 %||0.00325 %|
|Equity Futures||0.0021 %||0.0021 %|
|Equity Options||0.051 % (On premium)||0.053 % (On premium)|
|Currency Futures||0.0021 %||0.00135 %|
|Currency Options||0.051 % (On premium)||0.053 % (On premium)|
|Commodity||NA||Non Agri 0.0036%, Agri 0.00275%|
|Equity||Up to 15 times Intraday and up to 4 times for delivery||Up to 20 times Intraday|
|Equity Futures||2 times for Intraday||Up to 2.5 times|
|Equity Options||Up to 2 times||Up to 2.5 times|
|Currency Futures||Up to 2 times intraday||Up to 2.5 times|
|Currency Option||Up to 2 times intraday||Up to 2.5 times|
|Commodities||NA||Up to 2.5 times|
2. Investment Services
|Initial Public Offering (IPO)||Yes||No|
3. Order Type
|Buy Today Sell Tomorrow (BTST)||Yes||Yes|
|Sell Today Buy Tomorrow (STBT)||Yes||No|
|After Market Order (AMO)||Yes||Yes|
|Good Till Cancelled (DTC)||No||Yes|
4. Research Reports/Tips
|Daily Market Report||Yes||No|
|Quarterly Result Analysis||Yes||No|
Is Zerodha good for beginners?
Having seen features offered by Zerodha, you can say it is not a great platform to start your trading journey. Zerodha does not provide you any relationship manager, research & advisory services. For beginners, it is difficult to pick stocks and Zerodha provides no such services to help you with it. You will have to learn on your own how to buy and sell orders. Though they have an online education app but you will have to go through a lot of course material to learn if you have no idea about trading.
On the other hand, 5paisa offers you tips and recommendations and you can check quarterly result analysis and other tools for stock picking.
When it comes to safety with a trading account, there are 3 security concerns customers have:
Money in trading account – there is always a small risk of the money that resides in your trading account if something goes wrong with the broker but chances of such happening are very less since brokers are SEBI regulated.
Shares and Mutual Funds – The stockbrokers’ are merely agents and actual stocks in your Demat account are actually held by central depositories. So your shares and mutual funds are totally safe.
Unauthorized transaction by broker – As long as your mobile number and email address are accurate in your trading and Demat account, the chances of the unauthorized transaction by the broker reduces significantly.
Is 5paisa safe?
5paisa is a professionally managed public traded company and its promoters have years of experience in the retail broking industry which gives the company a lot of stability. 5paisa is registered with SEBI, BSE, NSE, CDSL, and MCX, etc. It has excellent compliance records and it is audited regularly by the exchanges.
Is Zerodha safe?
Zerodha is the biggest and most trusted stockbroker in India. When it comes to risk, you can put Zerodha on the bottom of the list for the following reasons:
- Zerodha is a debt-free company
- Since they are only in broking service they cannot get into losses from other business verticals.
5. Customer Service
When it comes to customer service, Zerodha holds an upper hand. Even though the number of active customers of Zerodha is 3 times compared to 5paisa, Zerodha has a very organized customer support team and quick turnaround time for resolving customer’s issues.
|Live chat facility||No||Yes|
6. Products and Services
|Call in Trade||Yes||Yes|
|Trading in both the exchanges||Yes||Yes|
|3 in 1 online trading account||Yes||No|
|Offers multiple plan||No||No|
Note – Note that intraday trading is not allowed for NRIs since the Indian Government prohibits it.
Zerodha has Varsity and 5paisa has School as their educational platform which is free to use.
Zerodha Varsity can be accessed on their website and there is a separate app for the same. The best thing is, you don’t need to have the Zerodha account to access varsity. The platform covers all topics related to trading starting from basic up to risk management trading.
5Paisa platform offers five distinct courses, which teach novice investors about everything from Equity Markets to Taxations.
Since you have access to mobile all the time and most of the trading happens on mobile, it is one of the important parameters for investors and traders.
Zerodha has two separate mobile apps, one for stocks and another one for mutual funds. The stock app is known as Kite while the mutual fund app is known as Coin. Both apps have a very vibrant and user-friendly interface. You will love spending time on both the apps.
5paisa has a single app that has an old fashioned interface but is surprisingly useful for trading.
Picking a brokerage is difficult because of the high number of options. There are so many platforms coming every month and they are offering better services, you may fail to realize that there is no “one-size-fits-all” approach to trading. Every investor has different needs and operates with different preferences. From the points mentioned above, you can check what is that you are trying to do on the trading platform and decide which is the best platform for you.