This Espresso Vs 5Paisa review and comparison will help you to chose the best between both these stockbrokers. Myespresso by Sharekhan has been launched as an separate entity for discount brokerage services, where as 5Paisa which is a subsidiary of IIFL Holdings Limited (formerly known as India Infoline Limited) is an experienced discount cum full time stockbroker.
In this Espresso Vs 5Paisa comparison you will find answers of all the question related to both brokers at one place. We will be comparing different services such as brokerage, web/desktop based trading platform (Myespresso App vs 5Paisa App), account opening charges, customer service, margin and lot more products and services both stock broker offers to its clients.
But before we begin let me brief you about a quick fact about both stock brokers i.e. the number of active clients and total clients according to the latest NSE Data.
Espresso Broker by sharekhan got launched in the year 2020 on 22nd September and have created staggering 94,040 active clients within 16 months of its launch. Looking at this number it does shows the trust espresso have created for users in their products and services.
On the other hand 5Paisa have close to 24,090,40 (2.4 million+) active clients and more than 3.85 million overall clients (users) in India. Although these should never be the only criteria to choose a stockbroker for trading and investing, instead look at all features and not just one USP.
So let us go ahead and check out the best features offered by both these stockbrokers in 16 brief points.
Espresso Vs 5Paisa Overall Comparison:
I have already used both stock broker services as well as wrote the reviews about them in detailed way separately, based on my experience and facts below are things you can consider before opening an account with them.
- Espresso and 5Paisa both have fantastic trading platform for desktop/web/mobile app, you can do fundamental as well as technical analysis quite easily.
- 5Paisa have also tied up with third party service such as Sensibull for options trading, Smallcase for prebuild portfolio to invest and have their own smart investor and swing trader for intraday and delivery based stock recommendation service (paid) .
- Myespresso unique feature includes giving free daily intraday trading recommendations to its users on its platform, which helps beginner traders and investors, 5Paisa do offer recommendations but those are paid service.
- You can Invest and trade in all segments at both brokers i.e. Equity (Stocks), FNO, Commodity, Currency on both NSE, BSE & MCX.
- Espresso brokerages are lower than 5Paisa, they charge in equity Rs.20 or 0.03% (whichever is lower) whereas 5Paisa charges Rs.20 per executed order but with espresso there are No brokerage on loss-making trades and this is one of the USP of espresso.
- Espresso and 5Paisa both offers free equity delivery trades.
- 5Paisa also provides other services such as Portfolio management, Robo advisory, Insurance, Gold Loan, Personal Loan, etc. and these are not available with myespresso as of now.
- 5Paisa offers brokerage or say commission free mutual funds investment and platform for its users this is not available at Espresso as of now.
- Call and trade charges are Rs.50 for Espresso and Rs.100 for 5paisa if you use, Other charges such as stamp duty, DP, transactions charges remains same for both.
- Other than this you can also invest and trade in IPO’s, NFO’s, ETF, SGB, and many other financial products with so much ease with both stockbrokers.
- Both 5Paisa and Espresso provide up to 3X leverage in delivery based trades as well.
- If we talk about Margin at 5Paisa vs Espresso, after SEBI Rules on Intraday margin every stockbroker is giving same intraday margin 5X throughout India, hence this does not matter anymore.
- For a limited time period you can open a Free trading/demat account with Espresso here, although they do charges one time account opening fee of Rs.375. The AMC (Annual Maintenance Charge) at Espresso is Rs.400, which gets charged at the year end.
- For a limited time period you can open a Free trading/demat account with 5Paisa here, although they do charges one time account opening fee of Rs.300 usually. The maximum AMC (Annual Maintenance Charge) at 5Paisa is Rs.25 Per month, which gets charged at the year end.
- There are other 2 paid plans also available at 5paisa known as Power Investor Pack, Ultra Trader Pack , this reduces overall brokerages, DP Transaction, free trades, stock recommendation etc.
- You can invest in US Stocks such as Apple, Google, Amazon, etc. using 5Paisa trading platform which is very unique feature offered to clients and this is not available with espresso as of now.
Now, it is up to you to decide which one you choose as both Espresso and 5Paisa have everything that is needed to trade and invest in stock market as well as in other financial instruments hassle free online.
Overall, I find 5Paisa little better then espresso specially the trading platform and Mobile App.
Open Free Espresso trading/demat account through this link for a limited time period. Also get additional benefit Such as 1 year MoneyFlix subscription free and also a 30% discount on Espresso trade booster program.
Now, let us go dive deep to cover all different services and features of Espresso and 5Paisa step by step and see who is best between both discount brokers by doing in depth analysis.
About Espresso Vs 5Paisa:
Sharekhan has launched a separate entity called Espresso for discount brokerage services. Sharekhan is one of the largest brokers in India, was founded in 2000 and a subsidiary of BNP Paribas since November 2016.
Sharekhan offers a wide range of savings & investment solutions including equities, futures, and options. Currency trading, portfolio management, research, mutual funds and investor education.
Espresso got launched on September 22, 2020, R. Kalyanaraman is the CEO of espresso and have worked tirelessly to build a unique platform for traders and investors.
As per the CEO R. Kalyanaraman and I am quoting “Espresso isn’t just an interface. We’re in it for the long run. We’re in it to help you to succeed. That’s why we got our platforms Beta-tested by trading and investing enthusiasts. We didn’t stop there, though! With our Pay Only When You Profit pricing model, our endeavor is to ensure you keep at it and get better and succeed. We are here to help you achieve that, backed by our Sharekhan experience.”
Espresso offers trade execution facilities for equity cash and derivatives segments on BSE and NSE, commodities trading facilities on MCX and NCDEX as well as in currency segment.
They have partnered with both CDSL and NSDL for depository services. The basic idea of espresso is to help clients succeed by ensuring that they have more money in their hands by not paying brokerage on loss-making intra-day trades, or simply put ‘‘pay-when-you-profit-pricing model”.
5paisa is a subsidiary of IIFL Holdings Limited (formerly known as India Infoline Limited), Nirmal Jain is the owner of 5paisa as well as IIFL. However, In 2016, IIFL demerged 5Paisa Digital Undertaking from the company into 5Paisa Capital.
IIFL had invested Rs 100 crore in 5Paisa, a digital platform for all financial products including equities, derivatives, mutual funds, AIFs, bonds & debentures, insurance and personal loans.
So, 5paisa works as an independent company having support of IIFL, Mr. Prakarsh Gagdani is the director and CEO of the company. 5paisa got listed on Indian stock exchange ( BSE and NSE) In Nov,2017. 5paisa is also first Publicly Listed online broking company.
As I have already told you the total number of active clients are more than 26.5 lakh as per NSE. Which means they have added more than 1.5 lakh clients every year in last 5 years in market.
5paisa offers all financial services like Equity Trading, Mutual funds investments, Insurance, Research Products, Commodity and Currency Trading, Digital Gold Investment, Robo Advisory and Personal Loans under one roof.
5paisa headquartered at Mumbai, near Thane and it is associated with all three major stock exchanges in India NSE, BSE & MCX. They are depository participant (DP) for both NSDL and CDSL.
Moreover, you can Invest in US Markets using 5Paisa platform which they have recently launched this year 2021.
Espresso Vs 5Paisa Margin Comparison:
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. This helps traders in buying or selling more with less money in intraday trading.
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, 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.
For example: if there is a 20% margin requirement on a particular stock, then you will have to pay only Rs.20 to buy a stock of Rs.100. Another way to look at it is that if you have Rs.100, you will be able to buy five stocks instead of one.
Hence, the margin requirement will be same for all brokers including Espresso and 5Paisa for intraday trading in equites and derivatives.
One need to understand taking more margin means more risk and chances of your money getting wiped out is even more, so it is always advisable to use it in limited way.
So going forward please choose stock broker not in terms of margin or leverage as it is same for all brokers through out India.
Espresso Vs 5Paisa Brokerages Comparison:
Brokerage is the most important factor when you trade and invest, both 5Paisa and Espresso have quite low brokerages. Let us know brokerage for both discount brokers one by one.
Espresso Brokerage Structure:
First of all the brokerage charges are kept at decent Flat Rs 20 per order, For Intraday trades across all segments (Equity, F&O, Commodity and Currency).
There are no brokerage charges for delivery based trades at espresso. Moreover, No brokerage on loss-making trades, Let’s break it down with an example:
Suppose you make 20 trades a day every trading day of a year
20 trades a day x 250 trading days = 5,000 trades
5,000 trades x Rs 20 per transaction = Rs 1,00,000
Assuming 40% are loss-making trades, you don’t pay brokerage worth Rs 20,000!
Now let us how espresso brokerage structure works with another example. Suppose you bought TATA Motors 1000 shares @Rs.200 and sold the same @Rs.196, which means you made a loss on the trade.
Therefore espresso will only going to charge you one side of the order either buy/sell as it was a loss making trade.
Isn’t great that you don’t pay a penny on your loss making trades by using espresso stock broker. Another thing you must know in equity cash segment the brokerage charges are kept at 0.01% or Rs 20 for every executed order (whichever is lower).
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 0.01% of 20000, is Rs.2 so they will charge that instead of flat Rs.20.
For all other segments such as derivatives (FNO) IN Equity, Commodity and Currency the brokerage charges at espresso are kept at Rs 20 for every executed order, also Zero brokerage on square-off orders in case of loss.
Brokerage Structure of 5Paisa:
5Paisa do not charge any brokerage, for any segment, they only 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.
Similarly you can make investments in mutual funds through monthly SIP or Lumpsum using 5paisa platform and there are Zero charges as well as no commissions.
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
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
Net Banking Pay In Charges
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.
Overall, Espresso in terms of brokerages is better then 5Paisa.
Espresso Vs 5Paisa Trading and Demat Account Opening Charges:
If we talk about Espresso
To open a trading/demat account at espresso there are no charges Rs.0 for a limited time period if you open an account through this link. Whereas the Annual Maintenance charge (AMC) is Rs 400/year + GST charged quarterly.
Moreover, Get additional benefits with Espresso when you open an account through this link. Such as 1 year MoneyFlix subscription free and also a 30% discount on Espresso trade booster program.
MoneyFlix is the world’s first financial movies platform! Whereas trade booster program of espresso is provided by subsidiary company Sharekhan Education.
I think its a win-win deal for you as there are no charges to open the account for a limited period offer*.
If we talk about 5Paisa,Demat and trading account, for a limited time period 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.
Overall, If we see apart from free trading/demat account, 5Paisa is charging less AMC charges in comparison to myespresso.
Espresso Vs 5Paisa Account Opening Process Online:
The account opening process is online and it’s very seamless and smooth. Here is what you need to do:
To open an account with 5Paisa online for free, you can sign up using your mobile number through this link.
Similarly, to open an account with Espresso online, you can sign up using your mobile number through this link.
You will receive an OTP to your number and you can get started with the process.
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:
1. Your PAN card
2. Your Aadhaar
3. 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.
4. A photo or scanned copy of your signature proof will be required to be uploaded.
6. 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.
Espresso Vs 5Paisa Trading Platform Comparison:
The most important part of any trading platform is the tools and resources it has for technical and fundamental analysis.
let us talk about Espresso trading platform in detail.
There are 3 trading platform offered by Espresso for all devices:
- Binge (downloadable version) for desktop/laptop
- www.myespresso.com is the web version
- Espresso Discount Broking Mobile App
I won’t be discussing all the types of platform instead will discuss the Espresso Trading platform for desktop version, as the post will unnecessary be long you can read more about it here
Espresso Binge Desktop Based Trading Platform:
With Espresso Binge unleash the power of trading using Experience class charts, real-time feeds, multiple market scanners and much more to lend a hand to your trading. It has all the features required to be one of the best trading platform in India.
Advanced market sentiment tracker
Advanced market-watch tools that aid data visualization and decision-making
A watchlist that’s simple and hassle-free
Quick updates that help you stay ahead of the curve
The user interface is so clean and up to the mark, you can easily know which icon will do what, as the moment you will hover to any it will tell you the functionality of it.
Peer tracking beyond highs and lows
If you trade in Futures or Options than this downloadable platform is worth using. You have different tools to help you in trading FNO such as option greeks calculator, option chain, implied volatility tool, black and Scholes calculator in-built.
Get the power of charts with Espresso Binge
Choose and use the best candlestick patterns or other different types of chart such as Renko chart, Bar chart etc.
5Paisa offers trading platform for every device desktop/mobile/downloadable, whether you want to trade on your desktop/mobile, 5paisa technology driven service makes it easy and flexible to trade.
Let us talk about 5Paisa web based version trading platform:
5Paisa Trade station web is a browser based trading platform, which can be opened on any web browser you use. Just like a website but with all the tools and resources needed.
This is better than the downloadable version with great user interface and DIY (do it yourself) functions.
Create you market watch-list or predefined market watch , nifty50 all stock list are also available in one watch-list so need to add them separately.
Create your strategy by using infinite no. of tools, all best indicators with different candlestick chart patterns are available. Just drag and drop to apply them.
There is a separate option given to check the market analytics whether the gainer or looser of the day or 52week high/low, volume toppers etc.
Looking to invest for short term or long term you must need to know all about the company and with 5Paisa web based trading platform, it is easily available on a click.
Look out for historical data, all corporate action, share holding patterns etc.
Looking for option chain data or market depth, with trade station web all the information will be available at one place.
There are many more things you can do, and I can keep on writing about it, I personally found this as amazing because, you do not need to go to any other website to lookout or searching on google for any other information.
So, overall 5Paisa trading platform offers much better user interface as well as they have many other services integrated within the platform such as Sensibull, small case, swing trader etc.
My Opinion On Espresso Vs 5Paisa:
I hope you have now thoroughly understood most of the services offered by Espresso and 5Paisa, if you ask me in Espresso vs 5Paisa who is better?
Espresso by Sharekhan might be new in discount broking industry but as we know being a subsidiary of Sharekhan it has support as well as the experience that any new start-up requires.
Having said that, Espresso seems to be a perfect choice for anyone who is looking to open an free trading/demat account, moreover there are no charges as of now to open an account so nothing to lose at all.
It is a win-win choice for you as an trader or investor. Espresso by Sharekhan has all that is required for being one of the best in broking industry, If I have to rate Espresso after looking at there breakthrough pricing model for brokerages as well as other charges and experiencing there simple yet great user interface for trading platform I would give it 9.1 out of 10.
On the other hand
What makes 5Paisa different from other is not only the services offered by them but the free trading, Demat and mutual fund account, you do not have to pay a single penny to open the account, moreover you can use the services and see if its suits your need.
Secondly, the kind of technological advancement in there trading platforms, apart from this they offer PMS(portfolio management services),insurance, loans, gold investment, research advisory. You have the option to take paid subscription plan for even a month at as low as Rs.299.
Moreover, with 5Paisa you can also invest in US Markets easily within few steps.
Expressing my opinion in terms of all technological tools, advanced platforms, robust management, margin brokerage, If I have to rate the 5Paisa in comparison with Espresso, I will give 9.4 out of 10. So, go ahead and open an free account now there is nothing to lose its a win-win deal.
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If you are a beginner in trading and investing, please read this amazing guide on How stock market works in India?
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Note: Please do not take this as any recommendation, to trade or invest. This is just for reference, to make you understand more about 5Paisa Vs Espresso and its importance, under no circumstances intended to be used or considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.
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.