5Paisa is an online low-cost trading platform launched in 2005/2006. Zerodha was started by two brothers in 2010. It has 2 or 3 times more users than 5Paisa. Both the platforms are discount brokerage firms i.e. they charge low brokerage compared to once upon a time big players such as HDFC Securities, ICICI Direct, etc. ICICI Direct charges 40 per order, while 5Paisa/Zerodha charges 20 Rs per order. Although they have similar pricing, they have some unique and similar features. Below, we’ve shared the differences, features, similarities of the two online trading platforms:
Zerodha vs 5Paisa
To open a Demat account with 5Paisa and Zerodha, you must fill out and submit the onboarding form. The form may ask you to upload a photo of your signature, upload the bank statement as proof of address, and enter the PAN card number. If you fill out the form correctly and enter genuine details, your account will be activated within a day.
Charts play an important role in choosing stock for trading. Zerodha supports two charts – ChartIQ and TradingView. 5Paisa used to support ChatIQ charts only. Now, it can show TradingView charts as well. You can switch from ChartIQ to TradingView charts with one click of a button.
UI and UX
Zerodha might have an attractive UI, but it cannot beat 5Paisa’s user interface when it comes to productivity. 5Paisa shows the indexes and available margin on its navigation bar. You remove or add indexes of your choice to/from the navbar. No matter what interface you’re on, the available funds will always be in front of the user.
Zerodha has a sidebar on the left side of its interface. You can add stocks, indexes, etc of your choice on this sidebar. The stock and index price will always be before you when you’re trading. The only drawback is that the funds are not visible throughout the interface. Thus, while using Zerodha during trading hours, you may place a large order without knowing that the order value is more than the available funds in your account. In this case, your order will be rejected.
Many users create a list of stocks based on certain conditions. For example, in one list, users may add cement stocks, and in another list, they add IT companies. 5Paisa’s main interface boasts five lists. You can rename any list of your choice in this application. Zerodha ships with seven lists. Lists in this application are numbered 1 to 7. You cannot rename any of the lists in Zerodha.
Sometimes, when you buy a stock, you can’t be in front of the screen for some reason. Here’s when the 5Paisa’s and Zerodha’s automation features called GTT and VTT come in handy. These two functions are the same, and only their name is different. What is GTT/VTT? The VTT/GTT order has a target price/stop-loss price or both. This order will be sent to the exchange when its price reaches the target price set by you or hits the stop-loss price.
Leverage and margin
If you have 10000 Rupees in your trading account, you can buy stocks worth Rs 40000 in 5Paisa and 50000 Rs in Zerodha using the margin feature of 5Paisa and Zerodha. The two trading platforms offer 4x and 5x margins, respectively.
Holdings and current positions
When you buy a stock, you may want to check its price often and exit from the position when you’ve satisfied with the profit or don’t want to incur further losses. Zerodha shows the overall profit and losses on its “positions” page. 5Paisa shows the stocks in your portfolio or the stocks you’ve bought for intraday trading in the “my stocks” tab on its left sidebar. This tab shows the profit/loss and displays an option to buy/sell the stock without navigating to other pages.
When you make some profit by selling bought shares or short-selling shares, you may want to withdraw the money. Fund transfer requests made with 5Paisa are processed within 5 to 9 hours on the same day. Zerodha transfers the funds in 24 hours. The two trading platforms enable you to transfer money to your trading account with Netbanking or UPI.
A premium subscription plan of 5Paisa unlocks the “swing trader” tool that shows a list of stocks you can trade for the long term, short term, etc. You can also see popular Smallcases and mutual funds and their returns.
If you want to trade only the stocks whose price has increased or decreased substantially, you can use the “market analytics” tool of 5Paisa or open the “stocks” subdomain of Zerodha. In 5Paisa, when you click the name of the stock displayed in the “mark analytics” tool, 5Paisa will open the stock’s chart and show buttons to buy or sell the stock. This saves time for the user. In Zerodha, unless you’ve added the stock to your watchlist, you will have to enter the name of the stock in its “stock searcher” tool and buy/sell the stock when the option to do so appears.
5Paisa offers two paid subscription plans – Power Investor and Ultra Trader pack. The subscription fees for the two services are 499 and 999 Rs per month. What is the difference between the Ultra Trader and Power Investor packs? When the Investor pack is active, 5Paisa will charge Rs 10 brokerage per order. When the Trader pack is active, the firm won’t charge you DP fees, nor will it charge brokerage for delivery orders. The two packs give you access to two special 5Paisa services – Short term calls and long-term ideas. Zerodha has not launched any paid subscription plan yet.
Closing words: 5Paisa is more productive than Zerodha as it doesn’t make users open different pages as Zerodha does. Also, as it provides a subscription plan for reducing brokerage, it is a great trading platform for heavy traders i.e. users who take several trades daily.