5Paisa vs. Groww: Brokerage Comparison

13 Jan 2021  Read 1164 Views

It is challenging to determine which is the best stock broker in India because there are more than 200 (full-service and discount) stockbrokers in India. The choice of a stockbroker depends upon the trading and investment needs of the investments.

Today we look into two discount brokers – 5Paisa and Groww – their offerings, pros and cons, and how they fare against each other.

Let's dive straight in.

5Paisa

5Paisa Capital Limited, a publicly-traded and professionally managed company, is one of India's leading stockbrokers. It is promoted by the IIFL founders. Since beginning its functions in 2016, 5Paisa has become the second-largest discount broker in India by December 2018. It is a member of NSE and BSE.

Known for its range of product offerings at comparably lower prices, 5Paisa is mostly known for its free research analysis that helps its customers make informed investment decisions.

Groww

Groww is an India-based online investment platform targeting first-time investors (mostly millennials). It is the brand name for Nextbillion Technology Private Limited, which is a stockbroker registered with SEBI and a member of NSE and BSE

Initially started as a platform to invest in mutual funds, it expanded its product offering to include equity trading. The current product offering of Groww includes flat fee discount brokerage services to invest in IPO, equity, and mutual funds. 

How are they different from each other?

Let us critically differentiate between 5Paisa and Groww based on the following parameters:

Company details:

Particulars

5Paisa

Groww

Incorporation year

2016

2016

Type of broker

Discount broker

Discount broker

Supported exchanges

NSE, BSE

NSE, BSE

Account type offered

Optimum

Standard Plan

Product offering

Equity, commodity, currency, futures, options

Equity

Other investment options

Mutual funds, IPO platform, bonds, and debt, exchange-traded funds and insurance

Mutual funds, IPO platform

Additional features

SMS alerts, margin funding, and margin against share

SMS alerts

Brokerage Plans and Charges

*5paisa - Power Investor Pack and groww - Single Plan

Particulars

5Paisa

Groww 

Basic charges

Account opening

Free

Free

AMC

Rs. 45 per month (when traded)

Free

Plan charges

Rs. 499 per month

-

Call & trade charge

Rs. 100 per order

-

Brokerage charges

Equity delivery

Rs. 20 per order

0.05% on order value, up to Rs. 20

Equity intraday 

Rs. 20 per order

0.05% on order value, up to Rs. 20

Equity futures

Rs. 20 per order

-

Equity options

Rs. 20 per order

-

Currency futures

Rs. 20 per order

-

Currency options

Rs. 20 per order

-

Commodity futures

Rs. 20 per order

-

Commodity options

Rs. 20 per order

-

Margins

Equity delivery

4x as per exchange

0x as per exchange

Equity intraday 

20x as per exchange

8x as per exchange

Equity futures

4x as per exchange

-

Equity options

4x as per exchange

-

Currency futures

3x as per exchange

-

Currency options

0x/3x – Buy: 0x, Sell: 3x

-

Commodity futures

2x as per exchange

-

Commodity options

0x as per exchange

-

Transaction & Other Charges:

 

 

For equity delivery

Transaction charges

NSE – 0.00325%

 

NSE – 0.00325%

BSE – 0.003%

Demat transaction charges

Sell-side, Rs. 12.50 per scrip + GST for free Demat account

For ultra-trader pack – no charges

Sell, Rs. 8 per order

Clearing charges

As per NSE and BSE

-

GST

18% on brokerage + transaction + Demat

18% on brokerage + transaction 

STT

Rs. 100 per lakhs

0.10%

SEBI Charges

Rs. 15 per crore

0.00%

For equity intraday

Transaction charges

NSE – 0.00325%

 

NSE – 0.00325%

BSE – 0.003%

Demat transaction charges

-

Sell-side, Rs. 13.50 per company per trading day

Clearing charges

As per NSE and BSE

-

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

Sell-side, Rs. 25 per lakhs

0.03%

SEBI Charges

Rs. 15 per crore

0.00%

For equity futures

Transaction charges

NSE – 0.0019%

-

Demat transaction charges

-

-

Clearing charges

NSE - 0.0002%

-

GST

18% on brokerage + transaction + clearing

-

STT

Sell-side, Rs. 10 per lakhs

-

SEBI Charges

Rs. 15 per crore

-

For equity options

Transaction charges

NSE – 0.05%

-

Demat transaction charges

-

-

Clearing charges

NSE – 0.005%

-

GST

18% on brokerage + transaction + clearing

-

STT

Sell-side, Rs. 50 per lakhs

-

SEBI Charges

Rs. 15 per crore

-

Commodity futures

Transaction charges

0.0026% non-agri

-

Clearing charges

0.00%

-

GST

18% on brokerage + transaction

-

STT

NA

-

SEBI charges

NA

-

Stamp duty

0.02% or Rs. 200 per crore on by side future

-

CTT

0.0001% on exercise purchaser, 0.01% for sell future

-

Commodity options

Transaction charges

-

-

Clearing charges

0.00%

-

GST

18% on brokerage + transaction

-

STT

NA

-

SEBI charges

NA

-

Stamp duty

0.003% or Rs. 300 per crore on buy-side options

-

CTT

0.05% option sell

-

Currency futures

Transaction charges

NSE – 0.0009%

BSE – 0.00022%

-

Clearing charges

NSE – 0.0004%

BSE – 0.0004%

-

GST

18% on brokerage + transaction

-

STT

NA

-

SEBI charges

NA

-

Stamp duty

0.001% or Rs. 10 per crore on the buy-side

-

Currency options

Transaction charges

NSE – 0.04%

BSE – 0.001% 

-

Clearing charges

NSE – 0.025%

BSE – 0.025%

-

GST

18% on brokerage + transaction

-

STT

NA

-

SEBI charges

NA

-

Stamp duty

0.001% or Rs. 10 per crore on the buy-side

-

Pros and Cons

Particulars

5Paisa

Groww

Pros

·      The IIFL group is the promoter of 5Paisa.

·      Option to choose from two subscription plans as per trading needs.

·      Free technical, derivative, and fundamental research with an advanced trading platform.

·      Commission-free investment for customers.

·      Easy and quick account opening.

·      Only an Aadhar card is required for e-signup.

·      Simple and intuitive user interface.

·      Option to invest in US-based stocks is in the works

Cons

·      Demat transaction charges are high.

·      Higher exchange transaction charges compared to others.

·      Call & trade available at higher additional costs.

·      Other products are heavily promoted on the website.

·      The broker does not offer NRI trading services.

·      Minimal range of products.

·      Commodities and derivatives are not available.

·      Customer support is tricky.

·      In-depth analysis is not known, which makes it difficult for the users to analyze the funds.

What do the customers think

Particulars

5Paisa

Groww

Charges

Rating – 3.5/5

·      Offers flat brokerage rates.

·      Different brokerage plans for which premium is charged

·      Higher call & trade charges

·  Premium plans come with services like portfolio analyzers, monitoring services, etc.

Rating – 3/5

·      Free equity delivery and minimal brokerage.

·      Free AMC

·      GST is charged on exchange transaction charges and auto square off

Usability

Rating – 3/5

·      Easy account opening process.

·      Physical submitting of POA form mandatory.

·      Offline process is tedious and time-consuming.

·      Trading platform is user friendly with an integrated back office.

Rating – 3/5

·      Trading platform is similar to the app as well as the website, which causes less confusion.

·      Interface is user friendly.

·      Seamless account opening procedure.

 

Customer Service

Rating – 2.7/5

·      FAQs are categorically available on the website.

·      Call, automated chat support, and email support available.

·      Facility to raise tickets

Rating – 3.5/5

·      Chat and mail support available.

·      Ticket raising facilities available.

·      Assistance over call is provided only upon request.

Closing remarks

We see from the above article that 5Paisa provides some advanced trading tools with flat brokerage plans. Investors are required to pay extra for premium features. There is adequate educational content available on the 5Paisa platform. These features make 5Paisa a preferred broker for both the traders as well as the investors.

Groww, on the other hand, is a user-friendly platform where all the investment instruments are easily accessible. It does not provide analysis and research tools. There's no variety in the products offered other than equity delivery and equity intraday. Groww has good quality educational content available in the form of blogs and videos.

This article provides an overall picture of the product baskets and features of these full-service brokers. For a more detailed analysis on such brokers, do visit Select by Finology.

Stay Positive, Test Negative!

Happy Investing.

About the Author: Shrey Salwan | 43 Post(s)

Shrey Salwan is an MBA student at FLAME University, Pune, majoring in Marketing. He is also pursuing CA and CS. He is a creative thinker, a grammar nazi, and social media enthusiast seeking to work in the dynamic world of social media and content marketing to transform technical and digital information and processes into influential stories. He has a knack for telling stories and does so through his quirky way of writing.

 

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