Paytm Money launches discounted derivative trading; now trade F&O at only this much brokerage fee

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January 13, 2021 1:07 PM

The company will initially start derivatives trading with only 500 customers being given the option, beginning today.

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India’s leading digital payments platform, Paytm today launched derivates trading on its trading platform — Paytm Money. Launching the facility, Vijay Shekhar Sharma, founder Paytm and Varun Sridhar, CEO, Money said that their intention behind the launch is to increase financial inclusion in India. Trading in Futures & Options will begin on the Paytm Money application today at a flat rate of Rs 10 per trade, which is at a discount to what several other brokerage firms charge. Paytm Money has been improving its market share since its launch two years ago and already offers its customers direct mutual fund investment options, equity trading and IPO investments.

Futures & Options trading begins today

The company will initially start derivatives trading with only 500 customers being given the option, beginning today. The full-scale launch of F&O trading will be in two weeks, Varun Sridhar said. “Today in India, majority of market volume is from derivates. We want to make investment derivatives easy for Indians so out platform will be jargon-free,” he added.

The charge of Rs 10 per trade introduced by Paytm is lower than that charged by several discount brokers and traditional brokerage firms. With the launch of F&O trading, Paytm Money is aiming to reach a daily turnover of Rs 1.5 lakh crore in the next 18-24 months. Marin requirements on the platform, for now, will be as per exchange requirements, however, Varun Sridhar added that Paytm will be launching margin financing product in the next 2-3 months. 

Bitcoin will have to wait

Amidst the crypto-craze, Varun Sridhar and Vijay Shekhar Sharma said that Paytm would launch trading and investing options in cryptocurrencies such as Bitcoin on their platform only after regulatory approvals are in place. “It a dream of mine,” Sridhar said. “There are ongoing discussions on cryptocurrencies in India and we are a part of it,” he added. Similarly, the CEO of Paytm Money informed clients that Paytm Money would also launch options to invest and trade in debt securities later this year.

Paytm Money currently has 7 million direct Mutual Fund users on its applications with 10 million annual transactions. The firm, after two years of its launch now has at least one customer in 98% of Indian pin codes. Vijay Shekar Sharma said that the average SIP made by their customers is as high as Rs 1,500. On its stock trading platform, Paytm now has 1 lakh trading accounts and in December last year, the firm recorded 8,90,000 trades.

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