The leading digital payment platform in India, Paytm today launched derivatives trading on its trading platform – Paytm Money. During the launch of the facility, Vijay Shekhar Sharma, founder of Paytm and Varun Sridhar, CEO of Money, said their intention behind the launch was to increase financial inclusion in India. Futures and options trading will begin on the Paytm Money app today at a fixed rate of Rs 10 per trade, which is a reduction from what several other brokerage firms charge. Paytm Money has improved its market share since launching two years ago and already offers its clients direct investment options in mutual funds, stock trading and IPOs.
Futures and options trading starts today
The company will initially begin trading in derivatives with only 500 clients having the option, effective today. The full-scale launch of F&O trading will take place in two weeks, Varun Sridhar said. “Today in India, the majority of market volume comes from derivatives. We want to facilitate investment derivatives for Indians so that our platform is jargon-free, ”he added.
The charge of Rs 10 per transaction 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 aims to achieve a daily turnover of Rs 1.5 lakh crore over the next 18-24 months. Marin’s requirements on the platform, for now, will be in line with the exchange’s requirements, however, Varun Sridhar added that Paytm will launch a margin finance product within the next 2-3 months.
Bitcoin will have to wait
Amid the cryptocurrency craze, Varun Sridhar and Vijay Shekhar Sharma have said that Paytm will launch options for trading and investing in cryptocurrencies such as Bitcoin on their platform only after regulatory approvals. will be in place. “It’s a dream of mine,” Sridhar said. “There are ongoing discussions about cryptocurrencies in India and we are a part of it,” he added. Likewise, the CEO of Paytm Money informed clients that Paytm Money will also be launching options to invest and trade debt securities later this year.
Paytm Money currently has 7 million direct mutual fund users on its apps 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 the average SIP made by their clients was as high as Rs 1,500. On its stock trading platform, Paytm now has 1 lakh trading accounts and as of December of last year the company recorded 8,90,000 transactions.