Paytm Money has started offering futures and options trading by charging a lower fee as it takes on larger peers in the derivatives segment.
A wholly owned subsidiary of One97 Communications Pvt., Paytm Money offers the “lowest and most competitive brokerage” at Rs 10 per F&O trade intraday and none for delivery, according to a company statement.
The charges by Paytm Group’s online investment platform are lower than Rs 20-40 charged by biggest brokerages like Zerodha, ICICI Direct and Upstox. That will increase competition in the F&O trading segment, which contributes bulk of the volumes for exchanges, as Paytm looks to find a foothold in broking business.
Paytm Money has opened F&O trading for all and in the early access programme, saw interest from tier-III and IV cities and the rest of India towns, according to its statement.
More than 1 lakh users were granted access during the first few weeks of the F&O early access phase in January, said Varun Sridhar, chief executive officer at Paytm Money. Apart from the metros and tier 1 cities, investor interest was seen in smaller cities like Patna, Kota, and Guntur, he said in the statement. More than 50% of users were in the age group of 20-30 years.
At present, 22.86% of the trading in equity derivatives takes place through internet and mobile, largely dominated by retail investors.
Paytm is eyeing a market that is dominated by discount brokers Zerodha and Upstox.
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