Paytm is going to add spice to the highly competitive broking industry, as it has announced to start the broking services for its users from its flagship product Paytm Money. UnlistedZone a few days back has reported that Paytm Money has appointed Varun Sridhar a new CEO to lead broking business. Varun Sridhar is a seasoned player who has earlier worked with BNP Paribas.
Zerodha started in the year 2010 has opined the concept of discount broking wherein it has offered an ecosystem of wafer-thin brokerages for the investors and traders. Prior to that, a huge sum of money was going in brokerages for the clients in the stock market. The discount broking concept became an instant hit and with razor simple trading platform has today made Zerodha a leader in the broking industry.
Today, with the announcement of Paytm Money to start brokerage services, a new competitor having a large database of users will come as a direct threat to Zerodha.
Paytm Money Brokerage Charges
1. Rs. 15 per trade against Rs. 20 charge by Zerodha.
2. Annual charges of Rs. 250 against Rs. 300 charge by Zerodha.
3. Demat Account opening charge Rs. 150+GST against Rs.200+GST for online and Rs.400+GST charge by Zerodha.
This is good news for the shareholders of Paytm, the most valued startup in India, as this will give Paytm a new stream of revenue in the coming years. However, we will have to check the platform and service Paytm offers to traders and investors to gauze its advantage over Zerodha. It is very early to say how much competition Paytm Money will give to Zerodha, but yes, a price war will definitely begin from here on.