In this Upstox 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, Upstox with more than 4.8 million active clients is at the 2nd position whereas 5Paisa with more than 14,15,879 active clients is at 6th position.
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 Upstox Vs 5Paisa to tell you in short about who is best by which you can make instant decision to open account.
Upstox 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.
- You can trade and invest in all segments i.e. stocks (equity) FnO, Commodity, Currency, at NSE, BSE, MCX on both 5Paisa and upstox.
- Both stock brokers 5paisa and Upstox, have fantastic trading platform for desktop/mobile app, you can do fundamental as well as technical analysis quite easily.
- Upstox trading platform have also partnered with third party service integration as well such as Smallcase for portfolio based investments and, Sensibull for option based strategies, Tickertape, Sentinel etc.
- 5paisa have also done integration with Sensibull, however smallcase is not yet there.
- 5Paisa is a discount cum – full time broker, you may enjoy stock recommendation depending upon the paid addon plan you take. This paid service is not available with Upstox.
- 5Paisa has option for you to make investment in US stocks as well whereas Upstox is about to launch the same feature this year later.
- Upstox brokerages are lower than 5Paisa brokerages when comparing free basic plan of 5Paisa. 5Paisa charging Rs.20 per executed order whereas Upstox charging Rs.20 or 0.05% (whichever is lower). Upstox also offers free delivery i.e. brokerage free trades.
- Call and trade service if you use than charges are Rs.50 for Upstox whereas for 5Paisa basic plan (free) you will be charged Rs.100. Other charges such as stamp duty, DP, transactions charges remains same for both.
- You can expect good customer service from both stock brokers.
- 5Paisa as well as Upstox offers brokerage or say commission free mutual funds investment and platform for its users.
- Upstox and 5Paisa also gives Margin Trading Facility for up to 2X leverage (50% funds) for Equity Delivery trading or buying certain stocks and holding them,
- If we talk about Margin at Upstox vs 5Paisa, after SEBI Rules on Intraday margin every stockbroker is giving same margin 5x throughout India, hence this does not matter anymore.
- With Upstox and 5Paisa you can also invest and trade in IPO’s, NFO’s, ETF, SGB, and many other financial products with so much ease.
- 5Paisa also offers Insurance, loans, investments services where as Upstox provide digital gold investment.
- Upstox do charges one time account opening fee of Rs.249 and Rs.25 p.m. for AMC (Annual Maintenance Charge) at the year end. However you can open a Free Upstox account with Zero AMC charges for a limited time period through this link.
- Where as 5Paisa for a limited time period is also allowing free trading/demat account, they charges Rs.25 Per month for AMC.
- Overall, Upstox when compared on all parameters is better than 5Paisa as of now.
Now, it is up to you to decide which one you choose as both have everything that is needed to trade and invest in stock market hassle free online.
Now, let us go dive deep to cover all different services and features of Upstox and 5Paisa step by step and see who is best between Upstox and 5Paisa by doing in-depth analysis.
About Upstox Vs 5Paisa:
Let us start by knowing about both the stock brokers in brief.
RKSV Securities later changed to Upstox was founded in 2011, it was founded by Ravi Kumar, Raghu Kumar and Shrinivas Viswanath. RKSV stands for the initials of their names (RK for Ravi and Raghu Kumar and SV for Shrinivas Viswanath) later in 2016 the name has been changed to Upstox.
Upstox is backed by none other than Ratan Tata, Kalaari Capital, GVK Davixa and Tiger Global, recently they have announced building technology and platform to trade in US markets as well by next year. Upstox is a SEBI registered discount broker and member of NSE, BSE, MCX.
You can trade and invest in different segments such as Equity, Derivatives, Commodity, Currency Futures, Mutual Funds, IPOs. They are depository participant (DP) for both NSDL and CDSL.
As I have already told you they have more than 4.8 million active client base and total client is near about 7 million which makes them one of the reliable and best brokers for both trades and investors.
There office is registered at New Delhi and also has a correspondence office in Mumbai.
Recently Upstox have also officially partnered with VIVO IPLO 2021, which certainly going to increase its brand value as well as will attract more clients to its user base.
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 14.5 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.
Recently Upstox have announced building technology and platform to trade in US markets as well by end of 2022 this year. Whereas you can Invest in US Markets using 5Paisa platform which they have recently launched this year 2021.
Upstox 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, 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.
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 upstox 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.
Upstox Vs 5Paisa Brokerages Comparison:
Brokerage is the most important factor when you trade and invest, both upstox and 5Paisa have quite low brokerages. Brokerage is something which as a trader and investor one should always be looking at before choosing the broker.
Let us first know about the brokerage of upstox,
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.
Moreover for investing in mutual funds there are no brokerage or commission is charged at upstox at all.
Overall the brokerage charges at upstox are quite low and decent in comparison to other brokers.
Let us now move on check the brokerage at 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 Upstox is lower in comparison to 5Paisa. Upstox brokerage charges can be counted low as they offer free delivery trades which is not the case with 5Paisa.
Upstox Vs 5Paisa Trading and Demat Account Opening Charges:
The account opening charges at upstox depends on the plans you take.
For Retail Clients:
Demat and Trading account– You can choose from a plan of Rs 249 and get brokerage credit worth Rs 1000.
Keep in mind this charges are only a one time fee for opening the account as per your wish.
There will be a monthly maintenance charge of Rs 25 (excluding GST), which will be charged at the end of every month.
The AMC charges will be debited from your Trading a/c.
However, as a limited period offer you can open an trading demat and mutual fund account for free in upstox and also Get additional benefits with Upstox when you open an account through this link.
- Up to ₹20/order on Equity, F&O, Currency and Commodity
- ₹0 demat account maintenance charge
- ₹0 commissions on IPOs and Mutual Funds
- ₹0 fund transfer charges via UPI
If we talk about 5Paisa,Demat and trading account, there are no charges for account opening for a limited time period, 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, Upstox and 5Paisa both are equal in terms of account opening and demat charges.
You can even open account with both the stockbrokers and experience different services and features without much charges.
Upstox 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 Upstox online, you can sign up using your mobile number through this link.
Similarly, To open an A/c online with 5Paisa, Click on this link and first enter your mobile number.
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.
Upstox Vs 5Paisa Trading Platform Comparison:
The most important part of any trading platform is the tools and resources it has to technical analysis. Upstox 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 Upstox and ICICI Direct 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 post will be long, however you can read them in detail if you want here for Upstox trading platform for 5Paisa trading platform.
Having said that Upstox trading platform offers much better user interface as well as they have many other services integrated within the platform such as Sensibull, smallcase, tickertape, etc.
Whereas recently 5Paisa have also signed up with Sensibull, for option trading strategies moreover they have their own fundamental research team to guide you while making investments.
Overall, if you see Upstox trading platform is little better than 5Paisa in comparison.
Upstox Vs 5Paisa Other Services Comparison:
In this section you can see the comparison regarding all the various services offered by Upstox Vs 5Paisa at one place.
Keep in mind the stock recommendation, market reports, fundamental reports are paid services at 5Paisa.
My Opinion On Upstox Vs 5Paisa:
I hope you have now thoroughly understood most of the services offered by Upstox an5Paisa, if you ask me in Upstox vs 5Paisa who is better?
Upstox as an stockbroker has made its place in the Indian stock broker industry with their fast and efficient trading platforms, sophisticated charting software’s combined with speed and reliability as well ease of opening the account online paperless.
They are now at the top 2nd position in India for having the most active clients and can be trusted without any doubt. The charges and brokerages are very much reasonable in comparison to other brokers, if you are thinking of opening a trading/demat/mutual fund, than do not put any second thought.
If I have to rate upstox overall as an leading discount broker I will give it 9.5 out of 10, So, go ahead and open an account now there is nothing to lose its a win-win deal.
To open an account with Upstox right away click on this link.
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, 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 regret opening account with them at all.
To open an account with 5Paisa right away click on this link.
Moreover, just like diversification is important while investing or trading, one should always have 2-3 trading/demat accounts in case something goes wrong with the broker as happened in the past with Karvy and many others brokers. So you can even open account with both stockbrokers .
If you are a beginner in trading and investing, please read this amazing guide on How stock market works in India?
You can check my review on 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.