Paytm, an Indian e-commerce payment system and financial technology company based in Noida, Paytm Money, its wholly-owned subsidiary, has opened Futures & Options (F&O) trading for all. Also Read: Paytm, Google Pay and PhonePe brace themselves for new competition as WhatsApp gets nod to start payment services in India
What does it mean: The entry of Paytm means that masses will have easy access to F&O trading, indicating the recognition of the company’s efforts to democratize digital investing.
According to the company, it has simplified the process of opening trading & Demat accounts for the users with 100% paperless process with digital KYC. Company has said that users can start all the trades at just Rs 10 in line with its overnight and intraday pricing of Rs 10, and free delivery. Also Read: Amazon Web Services, SGX and Aquis Exchange undertook pilot to show trading shares in cloud can be fast and reliable
Broad view: Trading in F&O lets users bet on stocks by paying a marginal amount and exiting with profit/loss i.e. users don’t have to pay the full price of the stock. Paytm Money had launched an early access program for Futures & Options on its app and website and has now launched it for everyone. The company says that the platform would offer simplicity and flexibility to both young as well as experienced traders so that they can conveniently trade Futures & Options over the Paytm Money app and its website, in addition to the current offerings of Stocks, Mutual Funds, Digital Gold, IPO, ETF & NPS.
The benefits of investing in F&O via Paytm Money includes the ability to research the market easily, explore market movers, create customizable watchlists get real-time market information, and set price alerts for as many as 50 stocks. The platform also offers brokerage calculator that lets users discover the transaction charges and exact breakeven price to sell stocks profitably. Traders can also explore advanced options like Cover Order & Bracket Order.
Additionally, Paytm Money also supports both UPI and Netbanking, users can keep trading by transferring as low as Rs 50. Also, traders get money into the bank account the same day for fund withdrawals. Furthermore, users can track and view the entire fund add and withdraw history anytime, anywhere. Also Read: Citi selects Mastercard as network partner for Plex Accounts on Google Pay
What’re they saying: “We are delighted to share that more than 1 lakh users were granted access during the first few weeks of the F&O early access phase in January after its early access launch. The platform witnessed greater adoption by users from Tier 1 cities such as Mumbai, Delhi, Pune, Hyderabad, and Kolkata. Amongst the smaller cities that showed maximum interest were Patna, Kota, and Guntur. Additionally, more than 50% of users belonged to the age group of 20–30 years. Our pricing of Rs 10 flat per order without any contracts or commitments brings the overall cost of trading significantly lower and makes it super transparent. With this, Paytm Money is taking one step further to become India’s most comprehensive & top digital wealth management platform,” Varun Sridhar, CEO — Paytm Money said.