Paytm Money to offer F&O trading, aims daily turnover of Rs 1.5 lakh cr

Paytm Money to offer F&O trading, aims daily turnover of Rs 1.5 lakh cr

New Delhi: Paytm Money has started F&O trading on its platform and is aiming for a daily turnover of Rs 1.5 lakh crore in the next 18-24 months.

The platform—which also offers services around stocks, direct mutual funds, exchange traded funds, initial public offerings, National Pension System and gold investments—is focused on bringing “wealth services to 100 million Indians”, Vijay Shekhar Sharma, founder and chief executive officer of Paytm’s parent One97 Communications Ltd., said during the online launch of the F&O trading service.

“We are on a mission to bring wealth services to 100 million Indians, and this launch will provide further acceleration,” he said. “This product has been made keeping in mind the mobile-first experience, and we believe that presenting simple, low-price products can help make deep inroads into smaller towns and cities.”

Given the limited penetration of stock investments in the country, Paytm sees a high growth trajectory for its stockbroking offering, similar to its mutual fund offerings, Sharma said.

Future & Options represent ‘derivatives’ of the stock market. These derivatives are the financial instruments deriving their values from an underlying asset like currency, gold or the stocks of a company. Paytm Money will charge brokerage at Rs 10 for all Futures & Options trades, which is in line with its intraday charges of Rs 10 and free for delivery. Initially, Paytm Money will give early access to 500 users, while a public launch is slated in the next two weeks.

“The pricing disruption will benefit experienced as well as first-time traders to seamlessly trade in F&O with a best-in-class product on their mobile and in a secure environment…,” Paytm Money CEO Varun Sridhar said. “With the launch of F&O on its platform, Paytm Money is aiming at an overall daily turnover of Rs 1.5 lakh crore and 1 million trades a day in the next 18-24 months.”

Almost 50% of mutual funds and stocks investors on Paytm Money’s platform are new to the market and more than 60% hail from Tier-II and Tier-III cities. More than 60 million people invest in Digital Gold on Paytm and Paytm Money.

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