In this 5Paisa vs Fyers comparison, I would be discussing and covering all major aspects for both brokers, like brokerages, account opening charges, margin facility, trading platform any other optional services offered by them.
Coming back to 5Paisa vs Fyers broker comparison, just to let you know this comparison or say review is based on facts, as i personally have account with both brokers.
As a matter of caution the comparison will be little long as need to cover everything you can switch from table of contents below. So let us start and see who is best, 5paisa or fyers?
About 5Paisa Vs Fyers:
5Paisa and Fyers both have a history, in brief I have tried to explained how they both started and what is the current status.
As per the latest NSE Data 2021, Fyers have more than 1 lakh active clients where as 5Paisa have about more than 8.5 lakh active clients.
5Paisa Vs Fyers Margin Comparison:
Before we do margin comparison between 5Paisa and Fyers (Margin also known as leverages, exposure or limits) you should be aware of what margin exactly are?
Margin in stock market refers to buying/selling of securities(shares) by borrowing money from your broker. This is very much similar to taking loan for short period of time. Let us understand this with a simple example:
Suppose you want to buy shares of Tata motors currently trading at Rs.80. You have 1000 rupees in your trading account, how many shares you can buy with this money?
80*12=960, so approx. you can buy 12 shares, although with this low quantity, the profit you will earn if the shares prices move 1 rupee up and down is only 12. This does not look attractive at all. That is why the brokers would provide you margin to trade with larger quantity.
So they will give you 5 to 20 times margin (may be more), now multiply your initial investment 1000*10 or 20, you will have much more money to buy the stock and with more quantity. Now the profit per share will be more as the quantity got increased.
Sounds attractive now, as your 1000 becomes 20,000 and with that you can buy at least 240 shares in case of tata motors, and per 1 rupees movement will give you 240 bucks. Take it as an extra power given to you, now its up to you to decide whether you want to use it or not.
If you are an active trader or a beginner who knows what exactly going on with recent changes brought by SEBI, Higher Margin won’t be a factor anymore, now the competition among the broking industry is in terms of better trading platforms and lower brokerages plans.
The upfront margin collection in cash segment has been kept at flat 20%, which means now the leverage for all stocks would be 5x also the penalty provision for short-collection/ non-collection of upfront margin in cash segment has been postponed till 1,dec, 2020.
This means regardless of any broker you won’t get more than 5X times margin in equity cash segment and in FNO you need to have the full margin span+exposure to take any position.
However, this will get implemented in a phased manner from Dec,1,2020 till Aug 2021, so no need to worry as of now. You can read more about it here.
Therefore, the margin or leverages offered will be equal irrespective of the stock brokers in India going forward.
In simple term margin will be:
Maximum of 20 times until Feb 2021
Maximum of 10x from Mar to May 2021
Maximum of 7x from Jun to Aug 2021
Maximum of 5x from Sep 2021 onwards
Above are rough estimates only, it may be more or less similar. check the complete VAR+ELM list here. With 10x leverage, if you have 10k in your account your purchasing power becomes 100k, with 5x leverage it comes down to 50k, so you will have to adjust accordingly.
Margins will increase for Option writing as well, margin requirements will be as below:
- 25%(4X) of the SPAN + Exposure margins until Feb 2021
- 50%(2X) of the SPAN + Exposure margins until from Mar to May 2021
- 75%(1.33X) of the SPAN + Exposure margins until Jun to Aug 2021
- Full SPAN + Exposure margins from Sep 2021
From 1st Dec 2020, intraday FnO positions needs a margin requirement of 25% of 1L, which is 25,000 for intraday FnO position. This requirement goes-up to 100% of FULL span + exposure margin or full 1L from Sep 2021.
Keep in mind this also applies to Currency and commodity derivatives as well. I am still showing you the margin comparison for past reference:
Unlike other brokers, 5paisa offers different services depending upon the subscription package you take at the time of opening the account with them. This means either you do not take any add on plan from 5 paisa and continue using the services with normal features or opt for 2 addon plans that they have.
They provide 2 types of add on Plans:
- Power Investor Pack
- Ultra Trader Pack
5Paisa Power Investor Pack Review:
If you are someone who does not have either time to do technical or fundamental analysis or you do not have enough knowledge to do so, than 5Paisa power investor pack are best thing you can opt. Having said that as stated above these add on plans are not compulsory at all.
Let us know the features and services under 5Paisa power investor plan :
- Flat Fee of Rs. 10 per executed order (50% discount)
- Stock ideas for intraday and short term trading from another product known as “Swing Trader”
- Long term ideas from another product known as “Smart Investor”
- Advanced Portfolio Analytics: Compare your portfolio performance with benchmark indices, sectorial concentration and much more
- Free Model Portfolio and list of hot stocks to watch out for.
- Advisory recommendation for long term
- Model Portfolio for new customers (track record of 10-15% more return than NIFTY)
- Timely communication for BUY & SELL
- Get extensive research on over 4000 stocks absolutely FREE
- Short term recommendations for 2-14 days
- Success rate 60-65%
- Daily recommendations
- Timely communication for BUY & SELL absolutely FREE
- Get Market Evaluation
- Daily Market Outlook
- Track your Portfolio
- Create benchmark
- NAV of equity portfolio – a first in the industry
- Check your buy sell decisions
So basically under power investor pack you get the best trading and investment ideas. Hence if you are trader or investor looking for short, mid or long term form of investment or trading than you can atleast give it a try for a month.
5Paisa Ultra Trader Pack Pack Review:
5Paisa ultra trader pack as the name suggest is basically for someone who do more of intraday trading plus investment.
First 100 trades FREE every month
|Brokerage||Flat Rs. 10 per executed order from 101st trade for all segments|
|Options writing exposure||Up to 4 times on all days|
|Call and Trade||Free|
|Net Banking Pay In Charges||Free|
Note: 18% GST applicable on all the above mentioned charges
Also, keep in mind that subscription charges are payable either Monthly or Annually and once paid is non -refundable.
Incase you do not opt for any such add-on pack from 5paisa these features and services won’t be available for you.
Note: 18% GST applicable on all the above mentioned charges
Fyers does not offer any such subscription plan like 5paisa, so let us see how both gives margin in all segments one by one, side by side.
5Paisa Vs Fyers Margin Comparison In Equity (Cash) Segment:
As you can see in the image above, Fyers in comparison to 5Paisa gives much more margin in equity cash segment. As said with Bracket order(BO) and Cover order (CO) order types you will get extra margin which 20X for 5Paisa and 25X for fyers.
Which I personally feel is more than enough, always remember the margin is a double edge sword, the more you take the more riskier your trade becomes. So, it is always advisable to use the margin but in limited way.
However, 5Paisa provides margin of 2X times in delivery segment, fyers provides none.
5Paisa Vs Fyers Margin Comparison In Futures and Options Segment:
For future and option in intraday 5paisa gives margin up to 3.35x times Which means if you want to buy 1 lot of nifty index which is about 1L, you would require only Rs.35000. (For optimum (FREE) user)
If we talk about fyers margin in futures and option segment, you can see the image below which is calculated from their margin calculator.
Fyers Margin In Options Buying:
SPAN + Exposure margins are not applicable for option buyers. To initiate a trade, you will have to pay the entire premium for 1 lot. However, do provide some leverage for near-month Nifty contracts. Normally, to buy Nifty 10800CE you’ll have to pay the entire premium of ₹5250. (70 Price* 75 Lot Size).
However, if you use cover orders to buy, you will get some margins/leverage and you can buy it for a lesser amount. With a leverage of 1.3x, you will be able to buy 1 lot with just ₹4040 (5250/1.3).
5Paisa Vs Fyers Margin Comparison In Currency and Commodity:
Fyers Margin In Commodity(MCX):
Fyers provide margin in commodity futures as well, below are some calculation for most traded commodities in market like gold, silver and crude-oil.
As you can see, in gold its 4X times of total overnight position for bo/co order. In Intraday normal orders it is almost 2.5X times.
Similarly for silver margin is almost 3.8X and crude its 7x times.
Fyers Margin In Currency Segment:
People who loves trading in Forex or currency, fyers offer different margin for different pairs of currency like for USD/INR in intraday you need to pay Rs.672/per lot, for taking the overnight position you required to pay Rs.2038, whereas in BO/CO depending upon you stop-loss and target, you pay around Rs.355.
check the image below:
5Paisa Margin In Commodity Segment:
|Delivery futures exposure||Intraday futures exposure||Option contracts|
5Paisa Margin In Currency Segment:
So, overall if we see in terms of margin in any segment Fyers provide highest margin in comparison to 5Paisa.
5Paisa Vs Fyers Brokerages Comparison:
As, you can see from the image 5 Paisa brokerage is depended upon the subscription plan you chose, for free basic plan they charge flat fee of Rs. 20 per executed order.
Keep in mind these brokerage is for free plan and not the two add-on packs ultra and power.
Update: 5Paisa introduced the new add-on plan has mentioned above, below image show old subscription plans
Fyers on the other hand Rs.20 or 0.03%(whichever is lower). For options in equity, currency and commodity it is flat Rs.20 per order.
What they mean is, suppose you bought stock xyz priced at Rs.100, quantity 100 on intraday basis,
so the total turnover would be bought 100, sold 100(100*200)= 20,000 on this amount they will charge either whichever amount is lower as 0.03% of 20000, is Rs.6 so they will charge that instead of flat Rs.20.
So, if you see and compare the brokerage for both 5Paisa and Fyers When comparing the free plan with fyers, fyers brokerages are lower. Having said that 5Paisa on brokerage are less for premium plans which include several other facilities, now its up to you to decide.
5Paisa Vs Fyers Trading and Demat Account Opening Charges:
For 5paisa demat and trading account there are no charges for account opening, the only thing is subscription charges for different plan that totally depends on you to take, basic Plan has no subscription charges at all.
However if you want to take benefit of premium service in other two subscription, power investor Plan, Ultra trader Plan you can try them on monthly basis as well.
5Paisa Demat account charges depends on holding value in demat account, for example if the holding value of stocks turn out to be less than Rs.50,000 there are no AMC, where as above Rs.50,000 and less than Rs. 2lacs it is Rs.8 per month and above Rs.2 lacs the AMC will be charged Rs.25 per month.
Account opening charges at Fyers
However AMC (annual maintenance charges) of ₹ 300 + GST will be levied per annum.
This amount will be debited from your Trading Account Ledger on a quarterly basis. Each quarter, an amount of ₹75 + GST (₹88.5) will be debited from your FYERS account.
So, overall if you see 5paisa Is charging less for account opening, demat and AMC compare to Fyers
5Paisa Vs Fyers Online Account Opening Process:
To open an A/c online with 5Paisa, Click on this link and first enter your mobile number,
You will be required to enter your PAN, bank account details and personal details to continue with the sign-up.
Once you sign up you need to upload certain documents listed below:
- Your PAN card
- Your Aadhaar
- To complete the e Sign process, you will have to authenticate it with an OTP. So, make sure you have the number linked to your Aadhaar handy. If not, you will not be able to complete the process. If the number linked to your Aadhaar is inactive, or if you don’t have any number linked, then you can visit your nearest Aadhaar Seva Kendra to get it updated.
- Cancelled cheque/Bank statement to link your bank account –
If your cheque is not personalized then the bank statement you upload should have both the IFSC and MICR code printed on it. If not then your application will be rejected. The bank statement has to be self-attested.
- A photo or scanned copy of your signature proof will be required to be uploaded.
- Income proof –
It is mandatory to submit income proof if you wish to trade in Futures and options – Equity, Commodity, and Currency. You can submit one of the below documents.
- Income tax returns acknowledgment
- 6-month Bank statement
- Latest salary slip
- Demat holding statement, or
- A CA certifying your net worth
Note: The documents mentioned are for a Resident Individual Account.
5Paisa Vs Fyers Trading Platform Comparison:
The most important part of any trading platform is the tools and resources it has to technical analysis. Fyers and 5Paisa both has all the indicators and types of chart required to make it possible.
Whether you want to use:
Different Candlestick patterns etc. you name the indicator and it will be there, so all in all Fyers and 5Paisa has everything what is needed for a hassle-free trading platform. You can add- withdraw funds directly, create or back-test trading strategies and lot more.
The reason I am not involving all the features of different trading platform, because unnecessary it will be long, second all the features are somewhat equal, however you can read them in detail if you want here for Fyers trading platform for 5paisa trading platform.
5Paisa Vs Fyers Orders Comparison:
|Order Type Compare||5paisa||Zerodha|
|AMO-After Market Orders|
|GTC-Good Till Cancelled|
Fyers Thematic Investing Platform:
Fyers along with the trading services gives its clients a platform to build portfolios which are pre designed and chosen by fyers. One who are looking for investment rather than trading can easily invest through thematic investing platform.
Thematic investing allows you to invest in different themes or portfolios without getting into the stock specifics. So, instead of spending your precious time doing fundamental analysis and trying to build your portfolios, you can simply choose various themes offered by fyers.
A theme is a portfolio of stocks which revolve around a particular idea or sector. Themes are intelligently designed to help investors build a good portfolio rather than individual stocks.
It is a less risky way of investing in the Indian stock market as compared to directly investing in individual stocks as it offers more diversification.
For those who are keen on investing but don’t know how to start, this is your go-to platform for building an optimal portfolio.
Choosing this route, gives you a hassle-free experience as themes are rebalanced periodically to help you stay tuned with current developments in the stock market with the help of fyers research team.
As I have already told you above there are No or say zero brokerage to pay for using thematic investment in fyers.
Other than this zerodha has tied up with various other financial tech companies provide many other services, however there is some charge associated with each services.
What Is 5Paisa Smart Investor?
5Paisa smart investor is a research tool help to build your portfolio. If you want to invest they provide insights as well as pre-build portfolio.
This feature is provided in partnership with Marketsmith India, a Research & advisory company founded by legendary US investor & author William J. O’Neil.
5Paisa Vs Fyers Other Services Comparison:
Services offered by 5paisa like advisory, smallcase Sensibull, stock tips does not come under free plan. Although they do provide a 14 days free trial for basic plan users.
My Opinion On 5Paisa Vs Fyers:
I hope you have now thoroughly understood most of the services offered by 5Paisa and Fyers, if you ask me in 5Paisa vs Fyers which is better?
Expressing my opinion in terms of all technological tools, advanced platforms, robust management, margin brokerage:
I would rate 5Paisa 8.9 out of 10.
Moreover, with 5Paisa you can also invest in US Markets easily within few steps, as of now only ICICIDirect has this options for its users.
5Paisa is more of a full-time stock broker offering all services such as loans, insurance, mutual funds, advisory, stock recommendation etc.. You will not get any such services with Fyers as of now.
Fyers is just 4 years old, have made itself a brand within this period. There are more than 300 stockbrokers in India which are working from so long, but Fyers has created its own place.
This a significant example of how a startup should work, As I have already experienced the various services offered by fyers, I must say there are ahead in the race and will be in Top 5 stock broker position very soon.
If I have to rate the Fyers in comparison with 5Paisa, I will give 8.1 out of 10.
So don’t wait, go ahead and open an account now with Fyers.
Or else you can open an account with both and continue the services whichever suits you best, as you only need to spend Rs300. AMC will get charged but its on quarterly basis for Fyers that too Rs.300 and for 5paisa you do not need to spend a single penny.
If you are a beginner in trading and investing, please read this amazing guide on how share market works in India?
You can check my review on Zerodha India’s no.1 broker here.
You can also check my comparison for zerodha vs 5paisa here
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.
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