When you are searching for the best places to trade in stocks, like the best stockbrokers in India, you’d surely come across one name over and over again, and that would be 5paisa. But if you have never heard it before, you’d be a little skeptical of it, and we understand that very well. But to answer your question in the simplest words possible, you see, 5paisa is completely legal in India. Still, if you have any more doubts about that, let’s get to the actual details about this platform and understand it in a better way.
What is 5paisa?
5paisa is an online stock broker in India that gives users the freedom to trade stocks and invest in mutual funds and other products. And just so you know, they originally brought 5Paisa into operation on the platform of the IIFL Group, one of the leading financial services firms in the country. Yes, it was back in 2016. But the reason why 5paisa became so popular is that it really makes trading easy for everyone.
You have the option to invest in stocks, futures, options, and mutual funds using 5paisa. And for sure, the accessibility of 5paisa, as well as its competitive plans, have resulted in the company acquiring a large user base over time.
Legal Standing of 5paisa in India
Though, one if not the most frequently asked questions about the 5paisa trading platform is whether it is legal in the Indian market. The news couldn’t be better: 5paisa is a completely legal entity in the financial market of the country, that’s what we are pretty certain of. It is compliant with the guidelines issued by SEBI, so nothing to worry about here.
Further, 5paisa has complied with the SEBI rules to legitimately offer its services and got a unique registration number (INZ000010231) from the authority. This certification simply means that the Indian government has approved 5paisa to be a stockbroker. Furthermore, it is a member of major Indian stock exchanges like NSE, BSE, and MCX.
5paisa is not only a stock exchange member but a Depository Participant (DP) with Central Depository Services Limited (CDSL) too. And what does that mean? Well, CDSL is a company that ensures that your account is safe and secure.
How Safe Is 5paisa?
5paisa places a high priority on safety, that’s for sure. And just so you know, it is a publicly traded company which means that its accounts are audited regularly by major exchanges and state agencies. And make sure you are aware of the fact that 5paisa never trades with its own money. This simply means that your funds are used solely for your transaction only, which means there is no financial risk, and whenever you make profits, you won’t have any hard time withdrawing those funds too. So it is low risk? Yes, that’s what we meant because your shares go into your own demat account. This ensures full control over your investments. Prices are clear, no matter what. That’s not it though, there are no hidden costs, allowing users to be aware of what they are paying for.
