In this Groww Vs 5Paisa review we will compare all the different services and features offered by both brokers and try to find out who is best among both stockbrokers.
Many beginners assume 5Paisa as a discount broker, but when you look at the services offered by them one can conclude 5Paisa is a equal to a full time stock broker.
Prior understanding why I am saying that, let me tell you a quick fact about both the stockbrokers, as per the latest data on NSE, Groww have more than 26,51,472 (2.6 million) active client whereas 5Paisa with more than 16,09,020 (1.6 million) active clients.
Groww established 4.8 years ago i.e. 2016 first as a mutual fund distributor and in 2019 they made debut in stock broking. All its prior users have been merged in broking segment automatically.
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. In 2016, IIFL demerged 5Paisa Digital Undertaking from the company into 5Paisa Capital.
Although the number do speak for themselves but one should never consider this as a benchmark before choosing any stock broker.
There are many criteria such as best trading platform and mobile apps, lowest brokerage, good customer service, lower or no cost for opening trading/demat account etc.
Just to let you know this review guide is going to be long, you can switch from table of contents to look for the relevant info you want to know.
However below is overall comparison points between Groww Vs 5Paisa to tell you in short about who is best.
So without further delay, let us start first with Groww Vs 5Paisa overall review in 13 brief points and later below you can check them in detailed guide if you want.
Groww Vs 5Paisa Overall Comparison:
I have already used both their 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.
- Groww is a discount broker not full time so do not expect stock recommendation or market research reports as of now, may be in the future they come up with this things.
- 5Paisa is a discount cum – full time broker, you may enjoy stock recommendation as well as market reports for depending upon the addon plan you take.
- Groww and 5Paisa has option for you to make investment in US stocks.
- Groww and 5Paisa brokerages are equal (Rs.20 per executed order or 0.05%) when comparing free basic plan of 5Paisa.
- Groww and 5Paisa both offers brokerage or say commission free mutual funds investment and platform for its users.
- 5Paisa also offers Insurance, loans, investments services whereas With Groww you can make investment in Gold, Fixed deposit.
- As of now you can only trade and invest in stocks (equity) and FNO segment at groww, Commodity, Currency segments are yet to be launched, whereas with 5Paisa you can trade and invest in all segments.
- Other than this you can make investment in Initial Public Offerings (IPO), Sovereign gold bonds (SGB), Exchange Traded Fund (ETF), with both stockbrokers.
- If we talk about Margin at Groww vs 5Paisa, after SEBI Rules on Intraday margin every stockbroker is giving same margin 5x throughout India, hence this does not matter anymore.
- Having said that, with 5paisa you also get the facility of margin in delivery based trades for up to 3X times, this is not available with groww as of now.
- Account opening charges as well as AMC (Annual Maintenance Charges) is Zero for Groww, whereas 5Paisa for a limited time period is also not charging for account opening and they do charge Rs.300 AMC at the year end
Overall, 5Paisa when compared on all parameters is still better than Groww as of now.
Now, let us go dive deep to cover all different services and features of Grow and 5Paisa step by step and see who is best between both discount brokers by in depth analysis.
About Groww Vs 5Paisa Broker:
Before we dig deeper to understand the various services offered it becomes utmost import to know in brief about 5Paisa and Groww history.
Harsh Jain is the Co-Founder & COO of Groww, he was also the product manager earlier with flipkart. Groww is based in Bangalore, Karnataka, Here is interesting fact about groww very few people know, the company use Groww as a brand name although it is registered by name Nextbillion Technology Private Limited.
Groww operates as an online investment platform and offers mutual funds, tax planning, investment management, and financial information services. As of now you can trade and invest in only stocks (equity), derivatives i.e. FNO, whereas Commodity, Currency segment is not available yet.
Moreover, groww also offers Digital gold, US Stocks, and Fixed Deposit as other investment options apart from stock broking. Groww has partnered with CDSL to provide the depository services to clients.
Groww offers trade execution facilities for equity cash segments on BSE and NSE.
Groww founded in 2016, and had initially started as a direct mutual fund investment platform for users. By the time they have crated immense popularity among users in the mid-2020s, Groww expanded its product offering to include Equity trading.
As of April 2021, Groww had partnered with 40 mutual fund houses and more than 6000+ mutual funds were available on the platform. As of Sep 2020, the company had raised $59 million in venture capital an now have more than 11 million users on its platform.
This year on 7, April 2021, Groww has raised $83 million in a Series D funding round led by Tiger Global, making the online investment platform the latest entrant in Unicorn list.
Groww is also backed by some of the well know investor companies such as Ribbit Capital, SEQUOIA, Combinator etc.
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 14.6 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.
Groww 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 Groww 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.
Groww Vs 5Paisa Brokerages Comparison:
Brokerage is the most important factor when you trade and invest, both 5Paisa and Groww have quite low brokerages.
Let us know brokerage for both discount brokers one by one.
Groww Brokerage Structure:
At groww the brokerage charges are Rs.20 or o.o5% (whichever is lower) on every order executed.
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 0.05% of 20000, is Rs.10 so they will charge that instead of flat Rs.20. Below is the screenshot taken from Groww brokerage calculator for intraday trading.
Whereas brokerage charges if you do investment i.e. taking delivery of the stocks to your demat account or doing Buy today sell tomorrow (BTST) trades the brokerage charges are same as of above.
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, the brokerage of both the stockbroker is somehow equal if we compare the free plans.
Groww Vs 5Paisa Trading and Demat Account Opening Charges:
To open a trading/demat account at Groww there are no charges Rs.0 if you open an account through this link, Whereas the Annual Maintenance charge (AMC) is also kept at Zero.
As a one time offer you will also get Rs.100 if you open an account using this link.
Moreover there is 0% commission charges for investing mutual funds through Groww Platform.
As compare to other stock brokers, they may charge some AMC charges for maintaining the account yearly, whereas Groww is not charging anything, this makes them apart for sure.
If we talk about 5Paisa as per the latest update, 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.
You can even open account with both the stockbrokers and experience different services and features without much charges.
Groww Vs 5Paisa Broker 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 Groww online for free, you can sign up using your mobile number through this link.
Similarly, To open an account with 5Paisa online for free, 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.
Groww 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. If we talk about Groww first below is what you can expect as an trader and investor:
The trading platform seems to provide great in-depth financial as well as technical analysis. There are 2 platform available at groww.
- Groww Web based Trading Platform
- Groww Mobile App for Android and OS
There are no downloadable version for desktop available for trading as of now with groww. Having said that let us review both stock broker trading platform separately to see more.
Groww Web Based Trading Platform:
The web based version at groww is quite clean and well designed, as the UI (user interface) looks dynamic and smooth.
Talking in terms of what is unique about the platform specially in respect to trading and investing, Groww platform offers great financial analysis for every stocks including the one listed in US (Nasdaq).
Checkout the image below to know more:
You can see the historical data for up to 5 Years or more. On the right side of the screen you can easily place the intraday or delivery trades in a click.
If you go downwards you can see other great financial insights such as performance of stock, other different brands of that company, About the company and lot more.
company statistics such as, Profit & loss, balance sheet of company, cash flows, P/E ratio (price to earning), P/B ratio (price to book) Book value etc. are one click away on groww web based trading platform.
Now, I understand that Groww first being a investment platform for users have great financial information for users moreover if you are someone who loves doing intraday based trading it does requires technical indicators, tools and other resources, which at groww web based version is also available.
So, If you are someone who do trading and investing for short, medium or long term, Groww has everything in place for you. You will see more new features gets added and also the downloadable trading platform version in future.
5Paisa offers trading platform for every device, 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 in comparison to groww web based as the groww does not have a downloadable version as of now.
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, etc. which is not available with groww as of now.
My Opinion On Groww Vs 5Paisa:
I hope you have now thoroughly understood most of the services offered by Groww and Fyers, if you ask me in Groww vs 5Paisa who is better?
Groww might be new in discount broking industry, but they do have more than 4.5 years of experience in providing a rich platform for users to invest in mutual funds scheme.
As we already saw they have more than 26.5 lakh+ active clients in stock broking and 10 million+ overall clients on the platform, this itself shows the trust it has developed among the users.
In my opinion they still need to to fulfill the stock broking requirements such as allowing, currency and commodity trading.
Having said that, I like their USP of allowing clients to invest in US, their strength in financial data for fundamental analysis, Free mutual funds investments.
If I have to rate Groww 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 8.8 out of 10.
Therefore, if you are someone who do more of investing and trading in stocks rather than FnO, currency or commodity than Groww is the perfect choice for you.
I am still being harsh as it is a new company particularly in stock broking, but you may see the ratings may go higher with time in my opinion.
On the other hand, If we talk about 5Paisa:
Expressing my opinion in terms of all technological tools, advanced platforms, robust management, margin brokerage:
I would rate 5Paisa 9.2 out of 10.
5Paisa has all services at one place and they offer free account opening so nothing to lose at all.
Moreover, with 5Paisa you can also invest in US Markets easily within few steps.
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 regret opening account with them at all.
To open an account with 5Paisa right away click on this link.
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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