Desire to trade resides in most of us but then the struggle of choosing a perfect stockbroker is scary. Don’t you worry, we have brought the complete study of 5paisa vs Zerodha to make it easy for you to kickstart your trading journey!

Although both 5paisa and Zerodha offer the discount brokerage model, still many have confronted blunders of not choosing the right broker at the right time that led to huge losses.

Thus, It is always important to know your stockbroker before you actually start investing your capital. 

The fact that both Zerodha and 5paisa are discount brokers makes it all the way more difficult to choose one of the two. One even fierce comparison is seen between Upstox Vs Zerodha, for the simple reason that both the stockbrokers started almost at the same time.

Anyway, in this review, we will talk about 5Paisa Vs Zerodha and here, we’re going to show the step by step comparison based on the following parameters, 

• Company background
• Account opening charges
• Brokerage plans
• Trading platforms
• Algo trading facilities
• Margin trading facility
• Account features, and
• Customer support

So let’s get started.

Difference Between Zerodha and 5paisa

When picking the stock we begin our research by analyzing the company’s background so that we end up investing securely in the right stock, Right? But when choosing a stockbroker, why does one skip analyzing the broker’s performance?

To check the reliability of the stockbroker it is good to check how the company performs. It not only gives you the assurance of security of your funds but also helps in knowing the sustainability of the broker. 

So, let’s look at the financial performance of the broker in recent years. 

Clearly, we see that both brokers have recorded good profits lately. 5paisa has seen a profit of Rs. 17.32 crores while Zerodha has seen a jump of Rs. 440 crores (latest numbers say profit cross 1000 Crores) which is obviously much greater than that of 5paisa. 

While coming to revenue generation for the financial year 2020-2021, Zerodha showed revenue of Rs. 1096.64 crores and again wins the point when compared to that of 5paisa which is Rs. 193.86 crores only. 

Now you know based on these previous records you can go with Zerodha. But, do you think it is fair to compare a company that is the pioneer of the discount brokerage system in the industry with a new one that started much later?

Definitely not! So here we dive a bit deeper into other parameters that actually make a broker absolutely perfect for you!

From the table above we get to know that both 5paisa and Zerodha are registered with CDSL, being members of NSE, BSE and MCX offers you to trade in equity, currency, commodity, derivatives and also offers IPO.

Clearly, in both, you enjoy vast trading options. Further when we see about the number of clients either of these has its quite pleasing as well as surprising for all.

Looking at the percentage of complaints resolved, which is 98.5% against the number of complaints received in Zerodha and 96.3% in 5paisa, it is obvious that both of these pay keen attention to their customers’ issues and resolve them quickly.

Yet, the resolving rate of Zerodha is slightly better than that of 5paisa, despite more complaints they show a faster tendency to solve the clients’ problems and retain them if and when required. 

This clearly depicts that the broker not only offers great services but is concerned about the customers linked with it. 

Let’s look further to understand the comparison more logically. 

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5paisa vs Zerodha charges

When it comes to charges, no one wants to pay more and earn less, in fact, it is the opposite of that. 

Any investor looking to start his/her journey in the share market aims to maximize his returns and profits. But we know, everything comes with a price, so definitely there are certain charges levied for the services a broker offers you as a trader or as an investor.

Let’s start by comparing the account opening charges. 

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5paisa vs Zerodha Account Opening Charges

Since we know that it requires a Demat account to start trading, one must be aware of the account opening charges that need to be paid. 

So, Zerodha 3 in 1 account facility helps you get a Demat account with a trading account, along with a savings bank account with IDFC First bank. On the other hand, 5paisa offers you 2 in 1 account opening including a Demat account and a trading account.

Talking about charges, 5paisa comes with the advantage of zero account opening fee, which indeed is great for the investors willing to start trading without having to pay any additional charges. 

Zerodha however, has a charge of ₹200 for traders willing to trade in equity and currency segments only while it is ₹300 for those who wish to trade in commodities along with equity, currency, and derivatives, etc. 

This is a bittersweet truth about Zerodha. Being a marvelous broker it can be quite extra in terms of charges sometimes. Not to forget the services it is known for. 

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5paisa vs Zerodha Account Maintenance Charges

After opening an account, next, comes how to keep your account active? Undoubtedly, this is done by your brokers by imposing some charges called the Account maintenance charges (AMC).

5paisa charges ₹25 per month based on the value of the shares. While Zerodha charges ₹300+GST(charged quarterly). 

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5paisa vs Zerodha Brokerage charges

After understanding the basics let’s get into the brokerage charges. 

Since both 5paisa and  Zerodha are discount brokers, traders and investors enjoy trading at a much lower rate. 

No wonder, the brokerage fees play a vital role in defining your overall profit or loss from a particular investment. 

Clearly, no trader would ever want to pay higher brokerages, so here is the comparison of the available brokerage plans of both 5paisa and Zerodha.

Now from the above table, we see that 5paisa has three brokerage plans for its customers

• Basic Plan that has a flat brokerage fee of rs. 20 for all segments
• 5Paisa Power investor pack of ₹499 per month, which offers you free research tips and derivative strategies with portfolio analytical tools. 
• While the third one is the Ultra trader pack, which not only gives you the benefits of the power investor pack but also lets you use the research tools along with zero DP charges. You can activate this plan by paying the upfront fee of ₹999 per month. 

Not just that, 5paisa offers you much more in these packs like free equity delivery, research on around 4000+ companies to help you trade smoothly and much more easily.

Now coming to Zerodha, they have a basic plan in which equity delivery is free while for all other segments it’s a maximum of ₹20 per order or 0.03% whichever is lower.

Seeing the number, almost both the brokers seem to have equal weightage in terms of brokerage charges. But before making a final decision let’s understand the minute difference in their charges with the help of an example. 

For example, Anne executed an intraday trade of ₹5000 in total. As per the brokerage plan of Zerodha, here is the minimum brokerage that she’ll be paying.

0.03% of 5000

= ₹1.5

5paisa brokerage fee= ₹20 (for general pack users)

₹10 (for value packs users)

As in the example stated above, Anne will have to pay ₹10 or ₹20 if she chooses to trade with 5paisa, but Zerodha on the other hand offers a minimum brokerage fee. 

So, if you are a small trader like Anne then choosing the broker with the minimum brokerage fees can help you in decreasing the brokerage and increasing your profit margin. 

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5paisa vs Zerodha DP charges

The depository participant or DP charges are levied on all the sell transactions. 5paisa charges a flat fee of ₹12.5 per scrip whereas Zerodha charges ₹13.5 plus GST per scrip. 

Now you may see all the Demat account charges here in the tabulated form. 

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5paisa vs Zerodha Margin

Margin facility has been an important part for traders, especially the intraday traders. Low brokerage and high exposure facility is a deadly combination that every investor looks for.

Recently SEBI has updated the margin norms for all the brokers, But Zerodha offers up to 7 times in equity intraday and 1.3 times in other segments on both buying and selling as you can see in the table below. 

Here we see that 5paisa is offering an immensely great margin to its traders of 10 times in equity intraday, however, it does not offer any margin in a few segments like equity futures and options, currency, and commodity futures. 

For anyone trading only in equity, 5paisa is a good choice in terms of margin. 

Let’s understand this by an example:

Suppose you want to do intraday trade in the stock of ABC company the current market price of which is ₹100 per share. You have ₹10,000 in your trading account.

Now let’s see what is the difference in the profit that you can earn by availing the margin from both the brokers. 

If you have a 5paisa Demat account you would be able to get up to a 10X margin. So assuming that you can get the 10 times margin for the stock you pick, let’s further calculate the profits. 

5paisa Margin=10X

Total trade amount= ₹100,000

If the stock price rises to ₹115 per share, then you would be able to sell off of your share at ₹80,500 thus earning a profit of ₹19,500.

Considering the similar situation, the profit that you can earn on your trade with Zerodha would be:

Zerodha Margin= 7x

Total trade amount= ₹70,000

Here the profit would be: 80500-70000 = ₹10500

Clearly, One would know that more margin can lead to more profits. Hence, intraday traders who are majorly dependent on margin facility will definitely go for 5paisa as it offers more margin of up to 10X than that of Zerodha which only gives up to 7X in intraday.

But if you wish to trade in multiple segments then choosing Zerodha proves to be profitable as it provides a margin facility of up to 1.3x in other segments as well. 

Now, an important aspect of all the comparisons we’re doing is Trading. Without a proper and user-friendly trading platform, none can make any form of investment or do trading. Let’s now get into the technical part of the comparison 5paisa vs Zerodha.

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5paisa vs Zerodha Trading Platforms

So far, we’ve seen the comparison based on the charges imposed and the margin model of both brokers.

However, let’s not jump to conclusions before understanding the entire facilities of both brokers.

From the table below you can see both 5paisa and Zerodha offer you Web-based and mobile-based trading platforms. But, this 5paisa also facilitates a desktop-based app called Trade Station 2.0., unlike Zerodha that has no desktop-based trading platform.

 

Obviously, being the first in the market, Kite has evolved ever since. It is among the most popular trading platforms and is loved by maximum investors and traders because of its advanced features.

Like numerous indicators to track your trends, you also get a treemap visualization of stock holdings based on invested amount, current value and P&L statement, bar graphs to view the most profitable and loss-making positions. 

You get to pin your most favorite scrips as well, making the platform more personalized for you and easy to understand in all forms or segments of trading.

While 5paisa Trade Station is popular among active traders for its smooth navigation and amazing tech research tools. Not just that, they give you advanced charts options with real-time ticks to track your stock trends. 

Below you can see the number of charts offered by both of these brokers along with the number of indicators that will help you in understanding the reliability of the broker for a better technical analysis.

From this, we see that although both have some similar features, yet Zerodha offers many more advanced indicators to do accurate technical analysis with about 15+ types of charts.

Obviously having only 3 chart types isn’t enough if you’re a professional and have to do multiple analyses on a daily basis. Thus, Zerodha will give you a good and reliable analysis opportunity. 

5paisa keeps updating their platforms every 3 to 6 weeks, which shows their efforts to develop a comfortable and compatible platform for their customers to trade without glitches. 

However, beginners might find it hard to cope up with the charges as the advanced tools aren’t for free and so the seasonal traders might find themselves paying extra charges for the platform without actually using it to its full potential.

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5paisa vs Zerodha Algo trading platforms

Another form of trading is Algorithmic trading. As we are all living in a fast-paced scenario, we wish to save more profits in less time. Algo trading can be an option for you.

This facility lets you decide the indicators and plan your strategy, test it and once you are ready, you are good to go!

The best part is you will not have to monitor the market all the time, as you’ll be getting trigger alerts when there is potential to warm max profits. 

5paisa offers open APIs for Algo trading, where you can build your own trading terminal, create your strategies using python, JSON, Golang, Java, Php, etc. 

Now in the Algo trading facility offered by 5Paisa, you need not have prior experience of coding as you’ll find many pre-loaded strategies in advance based on reports such as  MarketsmithIndia’s to do swing trading, etc. 

While Zerodha has also partnered with Streak, which is its flagship for Algo trading and is known to be the extension of its star platform Zerodha Kite. 

While in 5paisa only Power Investor pack and Ultra Trader pack users get the benefit of Algo trading with the fee of ₹10 per order for the technology-facilitated along with the existing package charge.

Additionally, both brokers offer educational platforms for beginners namely, 5paisa school and Zerodha Varsity. One should know that Zerodha charges about ₹2000 per month for its Algo technology. 

Varsity is the most popular among all other stock market educational platforms as it helps in providing a better understanding of the stock market in a simple language. So, if you are willing to learn and trade, then Zerodha can give you a unique experience. 

5paisa vs Zerodha Research and Advisory 

Every beginner is scared to get into the world of the share market because of the fact that many face drastic losses only because of not having a proper understanding of the fundamentals and technical parts of trading.

So to help such traders, many brokers offer advisory and research services. 

Providing a complete background and analysis of the stocks and the company so that the investor can make profitable decisions.  

However, as we’re looking into discount brokers, 5paisa and Zerodha do not offer any advisory services to their customers.

However, 5paisa’s special value packs offer research ideas and tools as it has tied up with MarketSmith India to facilitate market reports.

But then again, to reap fruitful benefits, you’ll be charged separately based on the type of research tool that you would like to use.  

Similarly, Zerodha’s stockreports+ helps you in getting the better recommendation and reports of around 3000+ stocks that help you in doing a proper analysis of the company before investing. 

Now we know that both Zerodha and 5paisa offer you stock reports namely, Stockreports+ and Marketsmith India respectively. 

But in Zerodha you can get the research reports in just ₹150 per month while 5paisa will give you a special value pack with stock reports in ₹499 or ₹999 per month, based on your add on package. 

5paisa vs Zerodha Account features

Obviously, after knowing the platforms we must look into the features that we get. After all, what decides the convenience level while using these platforms?

Of course, the features. So, here’s what we get in 5paisa vs Zerodha.

Both the brokers offer trigger alerts, both offer you the facility of the online portfolio with margin trading funding and who would miss our favorite, the referral and earn demat account program.

However, when it comes to guest demo, you don’t get any guest login facility in both the stockbrokers.

However, in case you need help in understanding the application, you can reach out to customer support and a demo session will be organized for you by the support team of 5paisa.

5paisa vs Zerodha Customer Support

Online account opening is obviously the easiest way to open a Demat account to start trading. But what if you are stuck at some point and don’t know what to do?

That’s where the customer support team comes into play. In the box below you’re seeing the ways in which you can connect with the support teams in both of these brokers. 

5paisa has an email facility, unlike Zerodha, to connect with the support team quickly and get your queries quickly resolved within 24-48 hours.

Yet, Zerodha’s offline presence in about 75+ cities across the nation, makes it more approachable for customers with about 120+ branches. Which is just about 25+ branches in the case of 5paisa across India. 

As we now have reached the end of the article, we’re seeing Zerodha as a clear winner here. 

Which is better, 5paisa or Zerodha?

As we have seen the company background, past data, and major other factors like charges, etc. It can be concluded that Zerodha is more preferable over 5paisa.

Obviously, as the pioneer in discount brokerage, Zerodha presented an easy way to do trade in stocks or to invest. It made it possible for almost all levels of traders to rely on it for a smooth and efficient trading journey. 

On the other hand, 5paisa being new is slowly evolving and making its place in the market. APIs that it offers are developing on a regular basis and have some additional research features that users might want to explore. 

Finally, here is an overall rating of 5paisa vs Zerodha.

Hope the article helped you in selecting your best broker as per your trading needs.

You may also visit adigitalblogger.com to get insights into more such stock market topics!

Happy investing!

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