5paisa – The Ultimate Guide to Investing & Trading in India

Welcome to our detailed guide on 5paisa! If you’re interested in trading stocks or investing in India without breaking the bank, this platform might be just what you need. 5paisa is a discount broker that offers low-cost trading and a range of tools to help you grow your money. In this post, we’ll walk you through everything in easy steps, from its background to how you can start today. It’s fantastic for beginners and active traders too, so let’s dive in and see if it suits your style.

5paisa is one of India’s best-known discount brokers, specialising in low-cost online trading and investment. It is owned by IIFL Securities and was India’s first listed discount broker. You can buy and sell stocks, futures and options (F&O), currencies, commodities, and even place investments in mutual funds, IPOs, and US markets—all for a flat fee of ₹20 per transaction. With more than 4.7 million clients, a rating of 4.3 in the app and over 22 million downloads up until 2025, it has risen quickly in a crowded space. In India, where increasingly more people are investing in stocks during growth in the economy, 5paisa simplifies with its web platform and app. Forget the excess fees of conventional brokers—begin with a demat account for free and trade wisely. It’s perfect if you prefer transparency and tools but not the bells and whistles.

The History and Growth of 5paisa

5paisa began in 2016 as an online arm of IIFL Securities, with the mission of providing low-cost trading to ordinary Indians. It soon gained popularity for its flat brokerage model, going head-to-head against larger players. It was listed on the stock exchanges in 2017, becoming India’s first listed discount broker. It has grown from simple stock trading over the years, adding mutual funds, algo trading, and offshore investments.

Growth is strong: It has more than 4.7 million users by 2025, from millions in previous years. The client base exceeded 4 million, with solid app adoption, boasting over 22 million installs. Achievements include receiving accolades such as MCX Leading Member in Options (2025) and Bharat NBFC & Fintech Awards for CX Transformation. Revenue has increased steadily on the back of improving retail participation in the post-pandemic era. It’s currently one of the fastest-growing brokers, with an emphasis on tech and user trust. Irrespective of Zerodha or Angel One‘s competition, its low-cost approach has seen it snare young investors.

How 5paisa Works

5paisa is simple: It is an online platform where you create a demat and trading account, fund it, and begin buying/selling assets. It’s all done through their app or website.

1. Account Setup: Open a free demat account with KYC (PAN, Aadhaar, bank details).
2. Funding: Add money using UPI, net banking, or transfers—no minimum required.
3. Trading/Investing: Search for stocks, mutual funds, or derivatives on NSE, BSE, or MCX. Place orders like delivery (long-term hold) or intraday (same-day). Use charts for analysis.
4. Execution: Orders are processed in real-time through exchanges. Monitor positions in your portfolio dashboard.
5. Withdrawals: Sell assets and withdraw funds to your bank, usually within T+1 days.

It has support for segments such as equity, F&O, currency, commodities, and mutual funds. Beginners can use mutual funds through SIPs; sophisticated tools are available for traders for F&O. SEBI-regulated, it’s safe and simple to monitor returns.

Features of 5paisa

5paisa offers a bunch of handy features to make trading smoother:

• Advanced Charts: Powered by TradingView and ChartIQ for real-time data and indicators.
• OI Analysis: Track open interest across timeframes for better F&O decisions.
• Screeners: Scan markets in real-time for stocks or derivatives.
• Strategy Charts: Visualize options strategies before trading.
• All-in-One App: Trade stocks, mutual funds, IPOs, US stocks, and more in one place.
• Robo-Advisory: AI-based portfolio suggestions for investors.
• Algo Trading: Via partners like Streak—no coding needed.
• Partners: Integrate with smallcase for portfolios, Quicko for taxes, and Tavaga for ETF management.
• APIs: For custom trading setups.
• Mobile-First: Cross-platform app with news, blogs, and market guides.

In 2025, updates include better US investing with zero commissions.

Pros and Cons of Using 5paisa

Based on user reviews, here’s a balanced take on 5paisa:

Pros:

• Affordable: Flat ₹20 brokerage saves money compared to others.
• All-in-One Platform: Handles stocks, F&O, mutual funds, IPOs, and insurance easily.
• User-Friendly Tools: Good charts, robo-advisory, and screeners for beginners and pros.
• Free Account Opening: No charges to start, plus free research.
• Fast Growth: Trusted by millions with solid app ratings.
• Diverse Options: US markets, algo trading, and partners add value.

Cons:

• Customer Support Issues: Slow responses and average service; some say it’s lagging.
• App Glitches: Hangs, crashes, or slow during peak times; not always user-friendly.
• Higher Other Charges: Exchange fees and call & trade extras can add up.
• Limited Advanced Features: Compared to bigger brokers, research might feel basic.
• Withdrawal Delays: Complaints about slow fund transfers.
• Privacy Concerns: Some users report spam after signing up.

Overall, it’s great for cost-savers but might frustrate if you need quick support.

Charges and Fees Structure

5paisa keeps fees low and transparent:

• Brokerage: Flat ₹20 per executed order for equity delivery, intraday, F&O, currency, and commodities.
• Account Opening: ₹0.
• AMC (Annual Maintenance Charge): Based on holdings—free if over ₹4 lakh; ₹8.33-₹83.33 + GST otherwise.
• Mutual Funds/IPOs: No commission.
• Other Fees: STT (0.1% on equity delivery), stamp duty (varies by state, e.g., 0.015% on delivery), transaction charges (0.00297% on NSE), GST (18% on brokerage), SEBI fee (0.0001%).
• Call & Trade: Extra ₹20 per order.
• Margin Funding: Interest from 9.5% p.a. after 30 days free.

No hidden costs, but check their calculator for totals. It’s cheaper than many for high-volume traders.

Security and Safety Measures

5paisa is safe, being SEBI-registered and compliant with regulations. It segregates client funds from company assets, ensuring your money is protected. Features include:

• Regulation: Full SEBI oversight; follows cybersecurity rules (extended to Aug 2025).
• Fund Safety: Investor Protection Fund covers up to ₹25 lakhs.
• Tech Security: 2FA, encryption, and real-time monitoring.
• No Major Breaches: Users feel secure, with no big incidents reported.

Always use strong passwords and enable alerts for peace of mind.

How to Start Investing on 5paisa (Step-by-Step Guide)

Starting is quick and paperless:

1. Download App or Visit Site: Go to 5paisa.com or get the app.
2. Register: Enter mobile, email, PAN, and DOB.
3. Complete KYC: Upload ID (Aadhaar/PAN), address proof (utility bill), bank details (cheque/statement), and income proof for F&O.
4. Selfie and Signature: Upload a live photo and sign digitally.
5. Add Bank Details: Link your account for funding.
6. Agree to Terms: Submit and wait for approval (about 5 minutes).
7. Fund and Invest: Add money via UPI, pick assets like stocks or SIPs, and place orders.

Start small with ₹500 in mutual funds. It’s free to open!

Customer Support and User Experience

5paisa offers support via email (support@5paisa.com), phone (+91 89766 89766), in-app chat, and tickets. They strive for 24/7 assistance via app. User experience is both praise and criticism: The app receives acclaim for simplicity and features but criticism for lags, hang, and old UI. Reviews average 4.3 on stores but cite slow support and still-open issues such as withdrawals. Users on X report app bugs and latencies, though the team assists. Overall rating, 3.5/5—good for fundamentals, but enhance responsiveness in 2025.

Conclusion

5paisa is a low-cost option for investing and trading in India, with low charges, reliable tools, and an increasing customer base. It’s ideal if you need an everything-in-one app without exorbitant fees, but be on the lookout for support and app glitches. As 2025 markets change, it’s a straightforward means of generating wealth—just learn and diversify. Want to give it a shot? Sign up and begin small.

Investing involves risk, so seek advice if you are in doubt.

Learn More:

• How to Start Investing in Mutual Funds in India – Step-by-Step Process for Beginners
• Difference Between Mutual Funds and Stocks – Which is Better for Beginners?
• Understanding NAV (Net Asset Value) in Mutual Funds – What It Means and Why It Matters
• Risks Involved in Mutual Fund Investments – Common Risks and How to Manage Them

FAQs: 5paisa

1. Is 5paisa safe for trading?
Yes, it’s SEBI-regulated with fund segregation and strong security.

2. What are the brokerage charges?
Flat ₹20 per order across segments.

3. Can I invest in mutual funds for free?
Yes, no commissions on mutual funds.

4. How long does account opening take?
About 5 minutes online with e-KYC.

5. Does 5paisa support NRIs?
Yes, with NRE/NRO accounts.

6. What if the app crashes?
Contact support via chat or phone; they usually fix quickly, but delays happen.

7. Are returns guaranteed?
No, markets are risky—past performance isn’t a promise.