5paisa cuts DP charges by half to Rs 12.5, lowest in industry
Discount broker 5paisa.com has reduced its DP transaction charges to Rs 12.5 from Rs 25, which it says is the lowest in the country.
DP charges kick in whenever shares are sold from a Demat account. They are similar to the transaction fee charged by exchanges or the brokerage asked for by brokers.
Clients of 5paisa, which describes itself as the most affordable brokerage in the country, will only have to pay Rs 12.5 per scrip whenever they sell a delivery.
“In the last few months, markets have been moving upward and retail investors are getting a lot of opportunities to buy low and sell high. But as most of our investors buy and sell in delivery and they have to pay DP transaction charges for every scrip they sell, they end up spending a huge chunk on their transactions. This has created some dissatisfaction among our customers, and therefore, we decided to reduce DP charges to the lowest in the industry,” CEO Prakarsh Gagdani said.
The brokerage's "Platinum and Titanium customers" would continue to enjoy zero DP charges, which, Gagdani said, was also a first for the industry.
5paisa, which is the only listed brokerage in India, charges a flat fee of Rs 10 per transaction irrespective of its value.
The Thane-based firm recently launched 5paisa Loans, a peer-to-peer lending platform, where one can lend Rs 500 to Rs 50 lakh to multiple borrowers and earn interest as high as 36 percent per annum.