(Last Updated: July 19, 2019)
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5paisa vs Zerodha: Review of Discount Brokers in India



  • You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.

    Stock Brokers in India
    Gone are the days when only banks and major financial institutions provided the trading facility. But today, there are many unique websites and applications which provide you and me with direct market access and allow us to freely trade in them too.

    Zerodha and 5paisa are amongst the websites and applications available in the market for open trading. These platforms are famous for enabling their users and members to trade in the open market directly and with “LOW BROKERAGE” charges.

    Yes, you guessed it right, these two discount broking platforms offer a flat fee brokerage model.

    Apart from being low cost trading and investment companies, these two companies differ on many points.

    5paisa vs Zerodha: Key Differences to Know
    Let's check and analyze the difference between Zerodha and 5Paisa.

    1. About the Company:
    Zerodha is a Bangalore based company which started on 15th August 2010 is a trading company. It is said to be India’s largest discount broker in terms of the number of active users.

    5paisa is a Mumbai based public company which also is a part of India Infoline (IIFL). The company is as old as in the 90's but the same was re-launched with a new low cost brokerage model for online retail trading service in 2016. It is India's 2nd largest discount broker as far as active users are concerned.

    2. Account Opening charges:
    Trading account opening charges for opening account in 5paisa platform is Rs 650 on a general basis. You may also grab a free account opening offer that usually runs for a limited period only.

    Whereas account opening charges at Zerodha platform is Rs 300 per annum only for Demat account. Also, Demat Annual Maintenance Charges under 5paisa are Rs 45 per month for the trading account. And, Annual Maintenance Charges (AMC) for Demat account maintained with Zerodha costs Rs 300 per annum.

    3. Brokerage Charges:
    5paisa charges a fixed fee of Rs.10 per executed order for Equity Cash, Equity F&O, currency and Commodities. Thus, irrespective of the number of shares bought and sold the maximum charges attached to each transaction is only Rs.10. This is the lowest brokerage plan offered by the best brokerage house in India.

    At the same time, Zerodha charges Rs.20 flat for intraday, F&O equity, commodity, and currency trading. Thus, the maximum amount which we are spending on each transaction is only Rs.20. The amount might be higher of what 5Paisa offers but is way less than the other entire trading service provider.

    Important Note: Zerodha provides all equity delivery investments under NSE, BSE absolutely free. That simply means no brokerage on such transactions. Having free equity delivery is the biggest advantage of trading through Zerodha.

    4. Investment Offering:
    Both the investing platforms provide an investment opportunity for Equity Cash and F&O, Currency, Commodity Trading, Mutual Funds Investment, EFT.

    Apart from all the common financial instruments, 5Paisa offers additional financial instruments for investment purpose like Bonds/NCD, Mutual Funds SIP, Insurance, and PMS Services.

    5. Investment & Trading Apps:
    5paisa offers you an online mobile trading app to make trading a great experience altogether. You can get live share market data, stock tips, easy trading through the 5paisa app.

    On the other hand, Zerodha has upgraded its earlier app and introduced Kite 3 mobile app for enhanced customer experience. A combination of speed and technology, Zerodha Kite app is a one-stop solution for all your trading and investment needs.

    6. Analytics and Report:
    Both these platforms provide detailed Research Equity Reports to their members.
    However, 5 paisa provides additional reports and insights to their user through the daily market report, News alert, free tips, Mutual fund research report.

    7. User Reviews and Satisfaction:
    Hands down, Zerodha has a larger number of active users than in comparison to 5Paisa. Not only in number, but Zerodha wins big time in customer satisfaction and rating as well. It has a large number of customer support expert agents. All user queries are resolved at a faster pace. There might have been few technical issues in between but the company has worked aggressively to respond to them quickly.

    Also, apart from an online customer support system, Zerodha has offline branches wherein user can just walk in and get their problems solved. 5paisa too has a good customer support to answer your queries.

    5paisa vs Zerodha: The Bottom Line
    We are comparing India’s two of the top investment and trading portals. Both of them have their own advantages and disadvantages. It depends on ones’ requirements to decide which stock broker suits them the most.

    So, get your pencil ready and sketch the pros-cons matrix of 5paisa vs Zerodha based on the strength and weakness. And once you have decided, “start investing”. Which discount broker do you prefer? Don't forget to share your feedback with us.



  • @Trader-buddy Hey, these two stock brokers are very popular. I usually hear my friends talking about either Zerodha or 5paisa when we discuss about investing in stock market. No doubt, these flat fee brokers have made trading a much easier task for the common man.



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