Zerodha vs 5paisa Margin Comparison

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Zerodha vs 5paisa Margin Comparison

Zerodha, number one discount broker in India offering free delivery trades and Rs 20 per trade in Equity Intraday, Currency, and Commodity. 5paisa is a flat fee discount broker offering Rs 10 per trade plan across all segments. 5paisa is a part of the IIFL group and has a strong presence in the financial market with the complete product offering, which includes Trading & Brokerage Service, Mutual Fund Investment and Insurance Advisory.

In this article we will discuss about Zerodha vs 5paisa margin comparison. In-depth comparison of margin policy of Zerodha and 5paisa, covered for all the segments and order types CNC, MIS, CO & BO.

28th Feb 2019 -Latest Update on 5paisa Margin Policy- 5paisa has increased their margin limit up to 20x for equity from 12x previously and 3 time exposure from 2 times in the derivatives segment. Now in "E" category scripts 5paisa is offering 20x exposure, Category "A" - 12x, Category "B" - 3x, Category "C" - 2x and for Category "D" - 1x exposure. For futures - 3x exposure, Options long - 1x and Options short - 3x exposure.

Zerodha vs 5paisa Margin Comparison

. Zerodha 5paisa
Equity Delivery Margin No Margin No Margin. With Margin Trading Facility (Margin Funding) get the 3.5x margin.
Equity Intraday Margin Up to 14x margin Up to 20x margin
Futures Margin Up to 2x margin Up to 3x margin
Options Margin Up to 2x margin for options shorting, no leverage for option buying Up to 3x margin for options shorting, no leverage for option buying
Equity CO/BO Margin Up to 20x margin Information not available
Futures CO Margin Up to 33x margin Information not available
Options CO Margin Up to 20x margin for options contracts sell. Buying is enabled for NIFTY only. Information not available
Commodity Margin Up to 2x MIS Margin of SPAN, complete SPAN is required to carry forward positions. N/A

Let’s explain by each segment:

1: Equity Delivery (CnC)

For buying and selling CNC (Cash and Carry) order or delivery order, both the brokers don’t provide any margin. You must have 100% of the fund in your trading account to carry f/w such trades. 5paisa provide Margin Trading Facility, where you get up to 3.5x margin for delivery trading. Interest on MTF is 18% PA.

2: Equity Intraday (MIS)

Zerodha offers up to 14x margin in NSE/BSE Intraday segment, where 5paisa offers up to 20x margin for NSE/BSE Intraday. So for day-traders, 5paisa are giving higher margin for Equity Intraday compare to Zerodha.

3: Equity Futures (MIS)

For Carry f/w future contracts, Zerodha and5paisaboth the brokers provide 1x of total margin, which means you must have 100% of the SPAN+ Exposure amount in your trading account to take such position.

For MIS orders Zerodha is offering 2x margin where 5paisa is offering 3x leverage of total margin for Indexes and stock futures contract.

4: Equity Options (MIS)

Both the brokers do not provide any leverage for options buying. For options selling contract Zerodha is offering a 2x leverage of total margin and 5paisa is giving 3x leverage of total margin for options shorting.

5: Equity Cover Order / Bracket Order (CO/BO)

Zerodha offer up to 20x margin in the Equity CO/BO.

6: Equity Futures Cover Order / Bracket Order (CO/BO)

For Future CO/BO, Zerodha gives up to 33x leverage of total margin for both equity as well as an Index.

7: Equity Options Cover Order (OCO)

Both the brokers do not provide any leverage for Options buying except Index NIFTY. For options selling contract with cover order, Zerodha is offering up to 20x leverage of total margin.

8: Commodity Margin

For commodity trading no margin offered for carry f/w positions. For Intraday positions, Zerodha offers a 2x MIS margin of SPAN. 5paisa don’t have commodity services.

Conclusion

5paisa as a discount broker is giving competitive margin for trading in Intraday and delivery product. Zerodha have the upper hand as its CO/BO margin policy is very clear as they offer up to 20x margins for Equity Intraday CO/BO and Options CO product and up to 33x margin for Future CO product. When comparing the margin policy of both the brokers, we recommend Zerodha as their margin policy is very clear and giving high margin for MIS, CO and BO type orders. Still, 5paisa is not giving clear visibility on CO and BO orders margin policy.

Last updated on 19th May 2019

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  2019-01-04T03:38:25+00:00






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