Paytm Money, a wholly-owned subsidiary of Paytm, a wholly-owned fintech, said on Wednesday that it would provide futures and options (F&O) trading on its platform as it considered to facilitate the 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, ETFs, IPOs, NPSs and digital gold – aims to bring “wealth services to $ 100 million. ‘Indians,’ said Paytm Founder and CEO Vijay Shekhar Sharma at the online launch of the F&O trading service.
“Our mission is to provide wealth management services to 100 million Indians and this launch will allow further acceleration. This product has been designed with the mobile-first experience in mind, and we believe that showcasing simple, low-cost products can help breakthroughs. in small towns, ”he added.
Given the limited penetration of equity investments in the country, Paytm sees a high growth trajectory for its equity brokerage offering, similar to its mutual fund offerings, Sharma said.
Paytm Money will charge the brokerage at Rs 10 for all F&O transactions, which is in line with its intraday fee of Rs 10 and free for delivery.
F&O represent the “derivatives” of the stock market. These derivatives are financial instruments that derive their values from an underlying asset such as money, gold or shares of a company.
“The price disruption will benefit both experienced and newbie traders to trade seamlessly in F&O with a top-notch product on their mobile and in a secure environment … With the launch of F&O on its platform, Paytm Money is aiming for a single digit overall daily business of Rs 1.5 lakh crore and 1 million transactions per day over the next 18-24 months, ”said Varun Sridhar, CEO of Paytm Money.
Initially, Paytm Money will give early access to 500 users, and the public launch is slated for the next two weeks.
“Our platform has a simple interface, built on the cloud to ensure stability, advanced charts and features to support high frequency traders and, more importantly, making it easy to buy their first contract. FNO for new traders. ordering without any contracts / commitments / conditions drastically reduces the overall cost of trading and makes it super transparent, ”Sridhar said.
With this, Paytm Money takes one more step to become India’s most comprehensive and number one digital wealth management platform, he added.
Almost 50 percent of mutual funds and equity investors on the Paytm Money platform are new to the market and over 60 percent are from Tier II and III cities. Over 60 million people invest in digital gold on Paytm and Paytm Money.