Paytm Money Review – High of cost-effectiveness and Low on the hassle

Paytm Money is a newly launched stock broking & mutual fund arm of the popular digital wallet of India.

Paytm. Backed by an aim to provide hassle-free discount broking to its users, Paytm has launched this extension of their mobile app.

Paytm Money Review In Details & rating, Brokerages Charges 

The company has released its mutual funds app, which allows customers to buy and sell mutual funds and handle their portfolio right from their smartphones.

Investors can choose to download and start using the app from today.

Let’s take a detailed review of Paytm Money.

About Paytm Money Securities Company & Its Establishment

Company Type – Public

Broker Type – Discount Broker

Headquarters – Bengaluru

Founder – Pravin Jadhav

Year of Establishment – 2017

With investment in mutual funds via straight plans gaining acceptance, various fintech companies have launched their mobile apps that act as a marketplace for people looking to make mutual fund investments.

In that league, here’s one such mobile app — Paytm Money.

In the year of 2017, the Securities and Exchange Board of India (SEBI) has sanctioned the launch of Paytm for Stock Broking.

BSE and the National Stock Exchange had distributed them broker membership. 

Paytm Money sells only direct plans of all mutual fund programs. Direct plans tend to have a lower expense ratio as they do not have distributor commissions included in them.

These are fundamentally destined for those who want to invest with the fund house unswervingly or on their own through third-party apps.

As Paytm Money is a listed investment adviser (RIA) with the capital market regulator.

The Securities and Exchange Board of India (SEBI), it is also instructed to offer only direct plans.

The stock trading platform allows people to trade in stock and cash trading, derivatives, ETFs and other traded exchange products. At present, the platform supports an auto-payment facility with over 190 banks.

Paytm Money Brokerage Charges & Fees

Here’re the brokerage charges & fees levied by Paytm Money.

Brokerage Charge & Fees

It is said the Paytm Money offers one of India’s lowest Demat trading account.

In actuality, on finance terms, they are just like other agents who are ready to forego the brokerage fee. 

Below are more details:

 Delivery segments permit the transactions you are brokering shares today on the next day.

Paytm Money charges 0 fees for such types of trades in which you don’t buy and sell on the same day.

 Trading intraday relates to online trade in which on the same trading day you buy and sell shares. Given the number of shares / trade value, the extreme commission you pay is restricted to Rs 20/trade.

 Brokerage fees for the segment Futures are similar to those for the segment Intraday.

 The options brokerage is very lucrative. They charge Flat Rs.20/trade irrespective of lots.

 For trading with Paytm money, a marginal amount of zero needs to be kept.

Paytm Money Other Charges

 Taxes are levied as per government guidelines

 The clusters STT and Turnover are quite low-size

 Cross currency such as USD, GBP is not allowed.

 There are no Security Transaction Taxes (STT) in the currency segment

 Due to the trifling amount of charges, no effect is passed on to the profit or loss.

Paytm Money Account Opening Charges

 Flat account opening fees of Rs. 300

 AMC for Demat account is Rs. 250

 0 Margin & depository service for both CDSL & NSDL

Products available on Paytm Money

 A wide range of financial products available for different types of customers

 Currency trading is available

 Option to invest in mutual fund and SIP

 Banking option available for investors

 Option to trade in equity, derivative, and commodity

Paytm Money provides below Services

 All-inclusive services for Demat and trading account

 The 3-in-1 account is available

 IPO and Intraday services are enabled

 The optimum margin of up to 20 X of investment

Leverage/Exposure of Paytm Money 

 Highest margin of up to 20X in the discount broking sector

 In case of delivery trading, Paytm Money offers 4 times of margin

Paytm Money Trading Terminal Review

The trading platform offers a host of features, information, analysis, and trends.

 Easy and quick funds transfer with nearly all leading banks like ICICI, HDFC, SBI, UTI, Kotak Mahindra, Axis, etc available.

 Chase Daily Price Range (DPR) and Average Traded Price (ATP) before proceeding with the call or not. Single-click ordering feature with a simple key. Likewise, there is an option to use shortcut keys to access other features.

 Live Market Data, Streaming Quotes. Enjoy the best 5 bid/ask and open interest quotes to analyse the market profundity.

 Double-layer verification for best-in-class security provision to include multiple market watch
lists. Allow users to view pre-chosen scripts detail.

 Easy access to information like Last Traded Price, best bid rate, total volume, best offer rate, etc.

 On the technical front, multiple forms of charts are provided on the trader terminal including Candlestick, Line, OHLC.

 View graphs with outlines in the brackets of 1 month, 3 months, 6 months, 1 year, 2 years and 5 years and so on.

 Furthermore, a detailed analysis is based on 14 different technical trading price and volume parameters.

 Limitations of Paytm Money

 Paytm Money doesn’t provide the option to trade in derivatives i.e. futures and options trading yet.

 Contrary to the trading platforms like Zerodha ‘kite’ which has been in the market for a quite
long time, Paytm Money is yet to be tested when it comes to managing large volumes and market volatility.

 Other offerings such as Commodity and currency trading is not accessible to customers.

Closing Thoughts of Paytm 

By making a foray into the discount broking domain, Paytm has now become one of the most all inclusive wealth management platforms in the nation.

Their wide-ranging existing customer base acts as their top-most leverage as they have access to the market not entered by other platforms.

This can also be witnessed in the app which features a UI that is welcoming and minimalistic, highlighting its approach.

OPEN A PAYTM MONEY AC