Is 5paisa really safe for trading?

by Rozzy S. Marketing Analyst

The range of stockbrokers have seen a huge surge in India. With the advent of platforms like Zerodha and Upstox, there have been many leaders in the market since then. 5paisa is one of the leading online stock broker offering online trading and investment in Equity, Derivatives and Mutual Funds. Whenever we use such a platform, the fear of security and authenticity of data is of prime concern. So here we are going to scrutinise the safety on 5paisa.

Why is 5paisa still in the market in spite of other players?

5paisa started its operations in 2016 and now has a database of over one lakh of active customers. In reference to the other stock brokers, it follows strict compliance and audit practices and is regularly audited by BSE, MCX, CDSL, NSE and SEBI. It is also now rated as the only public listed discount broker and provides margin funding @18% yearly only. With simple price model, no power attorney, no proprietary trading, lowest compliance rates, technology focused growth and not keeping client securities in pooled account makes it a favorable option for every trader and investor. But with its downsides comes its loss component over the years which is still to be tackled, and they are still into debts comes with a major risk.

Is it safe though?

The company is young and growing and every successive stock brokers faces a lot of difficulties. But that being said, 5paisa is a completely reliable and safe place to trade as it is registered with all the regulatory authorities and have promoters with 25+ years of experience in the retail broking industry. Though, it is professionally managed by a publicly-traded company which might fear people to trade but is also run by promoters like Mr. Nirmal Jain, a promoter of IIFL Group which will secure you the stress of thinking about it over and over.

A final thought

If you are looking to invest your money in the financial market and looking for a safe, reliable and growth-oriented online stock broker, 5paisa is the place for you. With its Algo Trading and Robo advisory, it makes it interesting and digitally secure with regular updates and modifications in their online platform, since having a little physical presence. It also has a zero promoter pledge where the promoters have not pledged their shares as collateral to get loans and with that risk free nature, it is listed

on exchanges and keep its books open for scrutiny which makes the platform completely secured from all dimensions.

To summarise keep these 5 points in your decision making step to trade with 5paisa:

· Young stock broker facing losses but providing security.

· Managed by a company providing tech driven solutions.

· Stay true to auditing and compliance.

· No major violations reported by any regulatory authority.

· Provide every type of research, recommendation and advisory service but at extra cost.

This should clear your confusion with the clear answer

“Yes, 5paisa is safe for trading.”

Additional disclosure: I wrote this article for information purposes only, and it expresses my own opinions. Therefore, the readers/investors are hereby advised to apply their discretion while making investment-related decisions.