5paisa - Safe, Reliable & Trustworthy Broker

5paisa is a trusted stockbroker in India for many reasons including it is a publicly-traded company listed on NSE & BSE exchanges, a company with Zero Promoter Pledge (promoters have not pledged their shares for loans), professional management, and promoted by Mr. Nirmal Jain (promoter of IIFL Group).

5paisa is one of the leading stockbrokers in India with lakhs of active customers. It has started offering discount brokerage services in 2016. It is a member of major stock exchanges like BSE, NSE, and MCX. It is a depository participant (DP) of CDSL.

Being a stock broker and a publicly-traded company, 5paisa follows rigorous compliance and audit practices in comparison to many other unlisted stock brokers. The company is regularly audited by BSE, NSE, MCX, CDSL and SEBI.

About 5paisa

5paisa is one of the leading online discount stock brokers in India. It offers online trading and investment in Equity, Derivatives and Mutual Funds. Here are a few key facts about 5paisa.

• Among the top online discount brokers in India.
• Promoted by Mr. Nirmal Jain, the promoter of IIFL Group.
• 5paisa Pay Later Margin trading facility is available at an interest rate of 0.045% per day.

Why is 5paisa safer than other brokers?

1. No client securities in the pooled account: 5paisa doesn't keep client securities in a pooled account. Every customer must open a demat account with 5paisa along with the trading account.
2. Simple Pricing Model: 5paisa offers a flat brokerage model for all customers at ₹20 per trade in any segment offered on the platform, be it equity delivery, intraday or futures & options. However, there are discounts in brokerage for high volume professional traders as well.
3. No Proprietary Trading: 5paisa doesn't do proprietary trading. That makes it a safe broker in comparison to many stockbrokers who do proprietary trading from the funds kept in customers' accounts.
4. No Power of Attorney: 5paisa is among the few brokers who have 90% clients without demat account power of attorney. This offers 100% security to clients of their holdings. Note that the customer has to put a password at the time of selling stocks to authorize 5paisa to withdraw the shares from the demat account.
5. Listed Company in NSE & BSE Exchanges: As a listed company, the books of the company are open to scrutiny by regulators, shareholders, and investors, etc. The company is required to publish its performance and financials periodically. This ensures that the company follows all regulations laid by SEBI and stock exchanges. The company's management is also answerable to the promoters, board of directors, and shareholders. 5paisa is a professionally managed company.
6. Technology-Focused Company: 5paisa is completely an online brokerage company. The company offers all its services online and has very little physical presence that gives it a substantial cost advantage in terms of saving expenses in staff, real estate rentals, etc. It also is one of the few stock brokers that offer Algo Trading and Robo Advisory. With the world going digital and online services being the future, the company's investments in technology make it future-ready.
7. Lowest Complaints to Active Clients Ratio: 5paisa's ratio of complaints to active clients is among the least on the exchange.

5paisa Memberships

5paisa is registered with SEBI and a member of leading stock exchanges like NSE, BSE, and MCX. All stockbrokers offering trading services in India must register with SEBI and follow various guidelines. 5paisa is also a DP (Depository Participant) with CDSL, one of the two Central Depositories in India that manages demat accounts.

5paisa's various membership details are as follows:

• SEBI Registration no.: INZ000010231
• CDSL: 12082500
• NSE Member id: 14300
• BSE Member id: 6363
• MCX Member ID: 55945

Conclusion

5paisa is a safe, reliable, and trustworthy discount broker. It is the first stock broking company to be listed in NSE & BSE. It is a professionally managed company backed by IIFL group promoters. The company has grown massively in the last few years. Technology-focus and good revenue model are ensuring that the company maintains profitability while pursuing high growth.