Paytm Takes On Large Brokers With Rs 10 Per F&O Trade Fee
A customer uses an Indian rupee banknote to pay for a purchase as a sign for Paytm online payment method is displayed at a stall selling snacks in Bengaluru. Photographer: Dhiraj Singh/Bloomberg

Paytm Takes On Large Brokers With Rs 10 Per F&O Trade Fee

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.

Watch to know more:

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.