Interested to Open Demat account in 5Paisa? 5 Paisa is one of the leading discount brokers in the market. The company holds the position of second-biggest discount broker in India after Zerodha. 5 Paisa provides the platform for trading in stocks at the lowest cost of rupees 20 per trade. Either the amount is as small as a thousand or it goes to crores the cost of stock rate per trade remains rupees 20.
Also, the headquarters of the company is located in Mumbai. It is part of Indian Infolines (IIFL) which is an Indian institution dealing in Non-Banking Finances. The IIFL was initially started in the year 1995 which makes the company stand on the ground for more than two decades now. The company 5 Paisa was relaunched in the year 2016 with all the new changes in the brokerage for the online brokerage services. Also, it demerged from IIFL to get listed on the stock exchange. It started its trading on BSE/NSE in the year 2017. This also crowned them as the first listed in the digital marketplace.
Company 5 Paisa offers a platform for different financial services that includes equities, mutual funds, derivatives, bonds, personal loans insurance, and debentures. The opening of any account in 5 Paisa is digital, no paperwork is needed. It requires the aadhar card and can be easily accessed on mobile phones, browsers, and also desktops. 5 paisa provides easy-to-use and trade services.
What is Demat and Trading account.
Demat Account- It is an account used for storing all your financial security documents in an electronic form. It is usually maintained by the depository organizations that include National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). They appoint an agent (Depository Participant) who acts as the middle man for themselves and the investors.
Trading Account- It is the account made to execute all the selling and buying of the stocks. This is also called an investment account where you can keep the security, assets, and cash. It determines the gross profit and loss of a business that acts in the trading.
List of the Services Offered by 5Paisa
There are multiple services provided by 5 Paisa in trading, investment, mutual funds, insurance, and many more.
The trading services in 5 Paisa starts from rupees 20 flat. It is an easy paperless procedure that comes with account opening using an aadhar card. Also, it provides the services to trade in Equity, currency segment, and F&O.The company provides zero Brokerage fees and the amount to be paid is 20 per trade.
2. Insurance Services
5 Paisa provides services in Term & Health Insurance. You can easily buy it on the site and get a bigger premium.
3. Mutual Funds
The company provides mutual funds services with zero transaction fees one can easily apply for. It is again a total paperless work and comes up with easy monthly investments.
The company also provides Robo Advisory which is a fully automated smart investment plan. It comes with a fully automated advisor.
How to Open Demat Account in 5Paisa
5 paisa provides a 2 in 1 account opening service which means you can apply for both Demat and trading account in one. It is total paperless work; everything is provided online. It is an easy process that is fast if all the required documents are ready beforehand. The process hardly takes around 5 minutes and voila you accessed a Demat and trading account. Intraday trading delivery trading requires an aadhar card, Pan Card, and a canceled cheque. These are the basic documents that are required for trading and for derivatives you need to provide income proof.
For normal account opening, you just require an aadhar card which should be linked to your mobile number to receive the OTP and to verify the user. The process is online and easy to understand and apply.
Here are the steps on how to open a Demat and Trading account in 5 Paisa
1. Visit the website of 5 Paisa (you can use the link)
2. Now you have to fill in the number on which you want to make your Demat & trading account.
3. Fill in the OTP and then it will proceed to another information.
4. Then provide your Email and you will again receive an OTP in the mail.
5. Fill the OTP also you will be receiving your login details of 5 Paisa via SMS.
6. Now fill in the Pan details and date of birth.
7. You will be asked to complete the KYC via Digi locker. It is optional you can clear the KYC afterward too.
8. After this you need to provide the required bank details, the account number, and IFSC code.
9. After verifying the details you need to fill up all the personal details for example ( Name, father name, marital status, and all).
10. This is a 6 step procedure after which you can make the payment
11. Completing all the steps your account will get activated in a time of 2 to 3 hours.
12. After this you can start trading easily.
Note- You have to select all in one account ( demat+trading account) and then choose open trading+ MF account).
How to open Demat account in 5 Paisa Offline
You can apply for Demat and trading accounts offline too. It is easy and convenient if you are not comfortable online. You need to download the application form, print it and fill in all the necessary details and send the form to the 5 paisa Mumbai office.
Overall it is easier to use the online form as it only takes around 5 to 10 minutes and the account gets activated in 2 to 3 hours.
Terms to Open Demat & trading account in 5 Paisa
1. The aadhar card should be linked to the phone number as it is necessary. The OTP will be sent on the number with whom the aadhar card is registered.
2. You need to go through the KYC later if you skipped th Kyc in the initial stages.
3. The pan card should have your sign or else it will get rejected.
4. Need valid bank details or else the application will get revoked.
5. The cancel cheque which will be uploaded on the site should have your name. (click a clear picture in which every information should be visible).
6. If you are using derivatives you need to provide the income source which should be genuine or else the application will be revoked.
7. The documents to be submitted for the Income source are ITR acknowledgment, annual account copy, form 16 copy, salary slips, net worth certificate, bank statement, and also the Demat account holding.
5 Paisa Trading Platforms
5 Paisa is available on all the major platforms as it provides the mobile application and website.
1. 5 Paisa Mobile Application
The mobile application is easy to use as you can trade BSE/NSE. It also provides Robo advisory assistance on the go. You can easily download the application from the play store and it is also available on the apple application store. It is easier and convenient. You can use the application for stock buying or selling, mutual funds, and investment almost everything you can manage via mobile application. It is one of the fastest and first discount brokers to cross 1 million-plus mobile downloads.
2. Trade Terminal
It is a desktop application that provides advanced tools for frequent traders who are into trading. The application offers advanced chats, history stock prices, real-time data, and also keyboard shortcuts for faster order placements.
3. 5 Paisa website
5 Paisa has its own portal www.5paisa.com which can be accessed from any web browser. You can surf via computer, phone, tablet, laptop anything it is easy to access. It is managed and better integrated with the bank portals. You can easily do the fund transfers or the bank transfers.
5 Paisa Charges
The one who is one to join 5 Paisa the trading account opening charges are rupees 650 which is a one-time payment. Currently, the charges are waived so opening an account for trading is free. The account annual maintenance charges (AMC) are around rupees 400 which has to be paid. This is an annual amount that needs to be clear every year.
When it comes to the trading charges the Stock Intraday trades charge around rupees 20 per executed trade. The amount remains the same for Stock Cash Delivery baked trade, Stock F&O trade, and currency F&O trade. They all charge 20 rupees per executed trade.
Benefits of Demat and Trading Account in 5 Paisa
Before opening a Demat and trading account it is important to know the advantages and disadvantages of using 5 Paisa for trading purposes. Here at the advantages of 5 Paisa why is it useful and more:
1. First and foremost advantage of 5 Paisa is it is seamless paperless work. The process will take around 5 minutes if the required documents are ready prior.
2. Digital signs are required; you don’t need to keep accountability of physical signatures.
3. You get a free mutual fund account, no charges are involved.
4. The company provides Robo advisory and Algo trading.
5. It is a multilingual app so language will never be a barrier.
6. The charges for the Depository Participant are less as compared to others.
7. There are no software charges involved with the application and websites are free (in terms of charges) to use.
8. The customer care services are available in both Email and Call.
9. The charges for the trade remain rupees 20 no matter how heavy trade it is the charges will never vary.
10. They provide research tools and also stock investment ideas.
11. Key advantage of 5 Paisa is it is promoted by IIFL.
Disadvantages of Demat and Trading Account in 5 Paisa
1. The major disadvantage of 5 Paisa is it doesn’t offer 3 in 1 accounts. It provides a 2 in 1 account that too for Demat and trading and else you need to link up the accounts with your 5 Paisa account.
2. 5 Paisa doesn’t offer commodity trading.
3. The company doesn’t offer NRI trading.
4. It has higher exchange charges.