5Paisa and Zerodha both are discount brokers that charge a fixed brokerage irrespective of the trade volume.
Zerodha was the first who introduced the discount broking model in India at a time when banks and other stockbrokers were charging a higher brokerage fee from the customer.
Till today, Zerodha is the biggest discount broker in India with a customer base of more than 5 million.
5Paisa was launched in 2017 (IIFL holding company) and has a customer base of more than 1.2 million.
I have compared the Zerodha vs 5Paisa side by side for important aspects like brokerage charges, annual charges, trading platforms, and customer support in this article.
Before going to the detailed review, let’s compare both the discount brokers on the basis of the most important parameters.
5Paisa Vs Zerodha (Comparison)
|Can trade-in||Stocks, Equity F&O, Currency & Commodity F&O||Stocks, Equity F&O, Currency F&O and Commodity F&O, Bonds and Govt-Securities|
|Brokerage Charges||5Paisa Basic Plan||Details for Zerodha Plan|
|Equity delivery||Rs. 20 per executed order||Rs. 0|
|Equity, currency, commodity – Intraday & F&O||Rs. 20 per executed order||Lower of Rs. 20 per executed order or 0.03%|
|Charges for Call and Trade||Rs. 100 per call||Rs. 50 per order|
|Margin for Intraday||Up to 10X||Up to 15X|
|Account Opening Charges||FREE||Rs 200|
|Demat AMC Fees||Up to Rs. 25 per month||Rs. 300|
|Apply Now||Open FREE 5Paisa Account||Open Zerodha Account|
5Paisa Vs Zerodha Account Opening Charges
5Paisa offers a free demat & trading account whereas Zerodha charges a nominal fee of Rs 300 for account opening.
Zerodha charges Rs 300 yearly as maintenance charges, on the other side 5Paisa charges up to Rs. 25 on monthly basis.
|Account Opening||Rs 200|
Rs 300 (including commodity account)
|Annual Maintenance Charges||Rs. 300||Up to Rs. 25 per month|
Winner – 5paisa is the winner where it offers free account opening and charging maintenance charges only if your holding value of the security is over Rs. 50,000.
Details from the 5Paisa website are as under –
If you are not holding any security and doing only intraday trading then the AMC will be zero.
So this makes 5Paisa a good option for the person who is looking for an AMC-free account for trading and doesn’t hold any securities.
Zerodha Vs 5Paisa Brokerage Charges
Zerodha offers free equity delivery but 5Paisa charges Rs 20 per trade for delivery transactions.
5Paisa charges a fixed brokerage of Rs 20 per trade under the basic plan for intraday trading, whereas zerodha charges lower of Rs. 20 per order or 0.03% per trade.
If your order value is more than Rs 67000 then both the brokers will charge the same brokerage of Rs 20. But for trade volume lower than Rs 67000 Zerodha will charge less @ 0.03%
5Paisa also offers “Power Investor Pack” and “Ultra Trader Pack” for high volume traders. Where you would be charged only Rs 10 per trade for intraday trading.
But these plans come with a monthly charge of Rs 499 & Rs 999 respectively.
Winner – Zerodha is a winner for retail investors due to free delivery and charging less brokerage for trades with less volume than 67000 per trade.
5Paisa Vs Zerodha Margin
Let’s have a look at the margin provided by both Zerodha and 5Paisa
|Intraday||Up To 15x||Upto 10x|
|Equity Futures||Upto 3.33x||Upto 3.5x|
|Currency Futures||Upto 2x||Upto 3x|
|Currency Options||Upto 2x||Upto 3x|
|Commodity Futures||Upto 2x||Upto 2x|
Winner – Zerodha is winner for intraday margin/leverage over the 5Paisa. For other segments, the difference is not big enough.
Zerodha Trading Platforms Vs 5Paisa Trading Platforms Comparison
Zerodha offers the following trading platforms to its users
- Kite 3.0 – Web-based trading platform
- Kite Mobile – Trading mobile app
- Sentinel – Market price alerts tool
5Paisa trading platforms
- 5Paisa mobile app
- Trade Station EXE – Desktop trading platform (software)
- TradeStation Web – Browser-based platform
- Algo Trading – Automated trading tool
Personally I use the trading platforms from both the stockbrokers. Zerodha trading platforms win over the 5Paisa trading platforms for better user interface, easy to use charting tools and more technical indicators.
Occasionally, Zerodha trading platform hangs before market closing due to load on servers.
But one important thing is that – Zerodha keeps working on the platform technology to make the trading platforms better.
Check out – Complete Zerodha Review
5Paisa vs Zerodha Customer Support
Almost all the discount brokers in India are still lagging behind in providing customer support.
If you check the twitter account of any discount broker you will find a lot of complaints from their customers.
Zerodha’s complaint number would seem large as Zerodha has more than 5 million customers as compared to 5paisa’s 1 million customers base.
But, if we calculate the percentage of complaints with respect to the user base then Zerodha’s number would be less than that from other discount brokers.
Winner – Both the brokers need to improve their customer service. But as per my experience Zerodha values their customers more and works to improve the service as compared to any other discount brokers in india.
Other discount brokers seem only focused on the customer accusation without considering the customer experience.
Why You Might Prefer Zerodha Demat Account
Zerodha is the most trusted and biggest discount broker in India. You might prefer Zerodha due to
- Free stock delivery
- Lower intraday charges of Rs 20 per trade
- Advanced trading tools with easy user interface
- Better customer support
Why You Might Prefer 5Paisa Demat Account
Earlier 5Paisa was the cheapest discount broker being charged Rs 10 per trade for intraday even with their basic plan.
But now, you need to buy its Power investor or Ultra trader pack for the lower brokerage charges. I don’t feel it’s worth it.
You can open a 5Paisa account if you are looking for a free account opening and occasionally do trading like for 3-4 months in the entire year.
The biggest advantage is, 5Paisa charges maintenance charges only if you cross the holding amount limit.
Which is better, Zerodha vs 5Paisa?
I would definitely recommend Zerodha over 5Paisa, after comparing all the aspects individually.
Zerodha provides free stock delivery, intraday trading charges the same for both brokers.
5Paisa has done good work on their mobile app but if we compare all trading platforms then Zerodha provides a better trading experience. Zerodha still has better customer support.