Introduction

If you are planning to open a demat account or switch brokers, understanding brokerage charges is extremely important. Many beginners focus only on account opening fees but ignore hidden costs that impact profits over time.

In this guide, we will break down 5Paisa brokerage charges in detail, including:

• Equity delivery charges
• Intraday trading fees
• Futures & Options charges
• AMC and hidden costs
• Real trading examples

Before choosing any broker, you should also read:
👉 Best Demat Account for Beginners in India
👉 Demat Account Charges in India (Full Breakdown)

What is 5Paisa?

5Paisa is a discount stock broker in India that offers low-cost trading services across:

• Stocks
• Mutual Funds
• IPOs
• F&O trading

It is known for:

✔ Flat brokerage model
✔ Low-cost plans
✔ Beginner-friendly platform

If you’re comparing brokers, also read:
👉 Zerodha vs Groww for Beginners
👉 Groww vs Upstox for Beginners

5Paisa Brokerage Charges Overview

Let’s first understand the basic structure.

👉 Flat brokerage means you pay ₹20 maximum per trade

Equity Delivery Charges (Long-Term Investing)

What is Equity Delivery?

When you buy stocks and hold them for more than one day.

5Paisa Charges

• ₹20 per executed order

Example

If you:

• Buy shares worth ₹50,000
• Sell after 1 year

👉 Charges = ₹20 (buy) + ₹20 (sell)

Important Insight

Even though ₹20 seems small:

👉 Frequent buying/selling increases cost

For long-term investing, also read:
👉 Best Demat Account for Long-Term Investors in India

Intraday Trading Charges

What is Intraday?

Buying and selling stocks on the same day.

Charges

• ₹20 per order

Example

• Buy intraday stock → ₹20
• Sell intraday stock → ₹20

👉 Total = ₹40 per trade

Real Impact

If you trade daily:

• 20 trades/month = ₹800
• 100 trades/month = ₹4000

👉 Use: Intraday Profit Calculator

Futures & Options Charges

Futures Charges

• ₹20 per order

Options Charges

• ₹20 per executed order

Example

Options trade:

• Buy option → ₹20
• Sell option → ₹20

👉 Total = ₹40

Important Note

F&O traders pay:

• Brokerage
• STT
• GST
• Exchange charges

👉 This increases actual cost significantly

5Paisa AMC Charges

What is AMC?

Annual Maintenance Charges for demat account.

Charges

• Around ₹300 per year

Why AMC Matters

Over 20 years:

₹300 × 20 = ₹6000

👉 This impacts long-term returns

Also read:
👉 Demat Account AMC Charges Explained
👉 Demat Account with Zero AMC in India

Hidden Charges in 5Paisa

Many beginners ignore these:

1. DP Charges

• Charged when selling shares
• Around ₹13–₹20 per transaction

2. STT (Securities Transaction Tax)

• Government tax
• Depends on trade type

3. GST

• 18% on brokerage

4. Exchange Charges

• NSE/BSE fees

5. Stamp Duty

• Applicable on buy side

👉 Read:
👉 Hidden Charges in Demat Accounts

Total Cost Example (Real Calculation)

Scenario:

• Intraday trade: ₹10,000

Charges:

• Brokerage = ₹40
• GST = ₹7.2
• STT + charges ≈ ₹10

👉 Total ≈ ₹60

👉 This is why beginners lose money in trading

Is 5Paisa Really Cheap?

Yes, because:

✔ Flat ₹20 brokerage
✔ No percentage charges

But:

❌ Hidden costs exist
❌ Frequent trading becomes expensive

👉 Compare:
👉 Best Discount Broker in India
👉 Lowest Brokerage Demat Account in India

5Paisa vs Other Brokers

👉 Also read:
👉 Zerodha vs Upstox
👉 Angel One vs Upstox

Who Should Use 5Paisa?

Best for:

✔ Active traders
✔ Budget investors
✔ Beginners

Not ideal for:

❌ Long-term investors (AMC applies)
❌ Passive investors

How to Reduce Brokerage Charges

1. Avoid Overtrading

Most losses come from:

❌ Too many trades

2. Use Long-Term Strategy

👉 Read: How to Build a Stock Portfolio

3. Invest via SIP

👉 Use SIP Calculator

4. Choose Right Broker

👉 Compare using Brokerage Calculator

Common Mistakes Beginners Make

❌ Ignoring hidden charges
❌ Choosing broker only on ads
❌ Overtrading
❌ Not calculating real cost

Final Verdict

5Paisa is a good low-cost broker, but:

👉 Not completely free
👉 Hidden charges exist

Best strategy:

✔ Use for trading
✔ Avoid overtrading
✔ Focus on long-term investing

FAQs

Is 5Paisa free?

No. Brokerage and charges apply.

Is 5Paisa cheaper than Zerodha?

Almost similar.

Does 5Paisa charge AMC?

Yes, around ₹300/year.

Is 5Paisa good for beginners?

Yes, but avoid frequent trading.

You Can Also Read

👉 Is Demat Account Free in India
👉 Can I Open Multiple Demat Accounts
👉 What Happens If You Don’t Use Demat Account
👉 How to Close Demat Account
👉 How to Transfer Shares Between Brokers
👉 Best Demat Account for IPO Investment
👉 Which Demat Account is Safest in India

Conclusion

Understanding brokerage charges is crucial before investing.

5Paisa offers:

✔ Simple pricing
✔ Low brokerage

But:

👉 Real cost = brokerage + hidden charges

If you want to build wealth:

Focus on long-term investing, not trading.