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If you are looking for a low-cost broker that offers direct mutual funds, you might want to check out Paytm Money. It is an online discount stock broker based in Bangalore, India. It was founded in 2017 by One97 Communications Ltd., the parent company of Paytm. In this Paytm Money Brokerage Charge Review 2023, we will explore the features, benefits, drawbacks, and fees of this broker and help you decide if it is suitable for your trading and investing needs.
Overview of Paytm Money
Paytm Money is a stock broking company that allows you to trade and invest in various segments of the Indian stock market, such as equity cash, equity delivery, futures and options, and currency derivatives. It is a member of NSE and BSE, has a depository membership with CDSL, and is regulated by SEBI. Paytm Money claims to offer the lowest brokerage charges in India, with the maximum brokerage charge per trade being ₹20. It also offers free equity delivery trading and direct mutual fund investments.
One of the highlights of Paytm Money is its direct mutual fund platform, which lets you invest in mutual funds without paying any commission or fees.
Paytm Money also provides various trading platforms for its customers, such as a web-based platform and a mobile app. Both of these platforms are designed to be fast, user-friendly, and feature-rich. You can access real-time market data, advanced charting tools, technical indicators, scanners, screeners, alerts, and more on these platforms.
What are the fees and charges of Paytm Money?
|
Equity Delivery |
₹20 or 2.5% of turnover (whichever is lower) |
|
Equity Intraday |
₹20 or 0.05% of turnover (whichever is lower) |
|
Equity Future |
₹0.01 up to ₹20 per Executed Order |
|
Equity Options |
₹20 per order |
|
Call & Trade Charges |
₹100 |
Apart from the above charges, you should know that there are no account opening charges. Also, there is zero platform fee for the first year, and zero brokerage fee is applicable for all Equity Delivery, Intraday, Futures, and Options orders for the first 10 days for everybody who opens their account on Paytm Money. But, you must know that the account maintenance charge of ₹300 is charged after 3 months of free look period for customers.
And there are some other charges applicable as well, which are as follows:
For Equity
|
Exchange Turnover Charges |
0.00345% of turnover for NSE and 0.00375% of turnover for BSE |
|
Security Transaction Tax (STT) |
0.1% of turnover on buy and sell orders |
|
SEBI Turnover Fees |
0.0001% of turnover |
|
Stamp Duty |
0.015% of turnover on buy orders |
|
GST |
18% on Brokerage, SEBI and Exchange Turnover Charges |
For Futures
|
Exchange Turnover Charges |
0.002% of turnover for Futures |
|
Security Transaction Tax (STT) |
0.01% of turnover on sell orders |
|
SEBI Turnover Fees |
0.0001% of turnover |
|
GST |
18% on Brokerage, SEBI and Exchange Turnover Charges |
|
Brokerage on expired contracts |
0.02% of turnover or ₹10/- per Executed Order, whichever is lower |
|
Stamp Duty |
0.002% of turnover on buy orders |
For Options
|
Exchange Turnover Charges |
0.053% on Option premium |
|
Security Transaction Tax (STT) |
0.05% on Sell Side (Premium) |
|
SEBI Turnover Fees |
0.0001% on Turnover (Premium) |
|
GST |
18% on Brokerage, SEBI and Exchange Turnover Charges |
|
Brokerage on expired contracts |
₹10/- per position |
|
Stamp Duty |
0.003% of turnover (Premium) on buy orders |
Other than this, there is also a monthly platform fee of ₹30.
Trading Platforms by Paytm Money
1. Paytm Web Trading Platform
- A web-based trading platform that allows users to trade stocks, mutual funds, derivatives, and IPOs.
- Offers a variety of charting tools and technical indicators for in-depth market analysis.
- Supports advanced order types such as bracket orders and cover orders.
- Provides real-time market data and news updates.
2. Paytm Money Mobile Application
- A mobile app for trading stocks, mutual funds, derivatives, and IPOs.
- Offers a user-friendly interface and a variety of features, including:
- Real-time market data and news updates
- Customisable watchlists
- Interactive charts and technical indicators
- Advanced order types
- Easy fund transfer and withdrawal
In summary, both the Paytm Web Trading Platform and the Paytm Money Mobile Application are comprehensive trading platforms that offer a wide range of features and tools for traders of all levels. The key difference is that the web platform is more suited for desktop users, while the mobile app is designed for on-the-go trading.
Benefits of Paytm Money
Paytm Money has many benefits for traders and investors who are looking for a low-cost broker with direct mutual funds. Some of the benefits are:
- The platform has a two-factor authentication system to protect your account.
- The user-friendly interface makes it easy to find the information you need.
- The in-house brokerage calculator and mutual fund investment advisory services can help you make informed decisions.
- It's easy to open and operate a trading account online, and the trading platforms are simple and reliable.
- The pricing model is straightforward, with low trading charges of a flat ₹20 per trade, regardless of the segment.
- The direct MF platform can help you earn an extra 1% in returns.
- You can invest online in digital gold and NPS, as well as stocks, derivatives, and mutual funds.
- You can apply for IPOs online.
- Mutual fund investment advisory services are available.
- Bracket and cover order types are available.
In simpler terms, the platform is secure, easy to use, helpful, affordable, convenient, and versatile.
Drawbacks of Paytm Money
Paytm Money also has some drawbacks that you should be aware of before opening an account with it. Some of the drawbacks are:
- No branch or customer support: This platform does not have physical branches or customer support representatives.
- The broker does not offer an NRI trading account: This platform does not allow non-resident Indians (NRIs) to open trading accounts.
- No commodity and currency trading: This platform does not allow trading in commodities or currencies.
- No facility of margin against shares: This platform does not allow investors to borrow money to buy shares.
- It only offers direct mutual fund plans.
- Equity Delivery brokerage is not free, unlike popular brokers like Zerodha and ProStocks. Also, there is some brokerage fee for equity delivery trades on Paytm Money, unlike some other brokers who offer free equity delivery trades.
- No branch support: This platform does not have physical branches.
- Unlimited monthly trading plans are not available: This platform does not offer unlimited monthly trading plans, which allow investors to trade an unlimited number of times for a fixed monthly fee.
Our Final Verdict
Paytm Money is a discount broker that offers a simple pricing model of a flat ₹20 brokerage per order across all trading segments, without any hidden charges. It is an excellent option for investors who are looking for a low-cost and transparent brokerage platform. However, it is essential to note that Paytm Money does charge other transaction and regulatory fees, such as platform usage fees, auto square-off charges, physical statement charges, payment gateway fees, and delayed payment fees.
These fees can accumulate over time, and investors should be aware of them before opening an account.
In summary, Paytm Money is a reliable choice for investors who prefer a low-cost and transparent brokerage platform. If you are interested in opening an account with Paytm Money or any other broker in India, you can visit Select by Finology. This platform enables you to compare different brokers, their features, and even their brokerages. Visit today!
