Brokerage Review

5Paisa vs. Groww: Brokerage Comparison

Shreya Tiwari

Created on 18 Apr 2023

Wraps up in 5 Min

Read by 183 people

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.

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Happy Investing.