The rise of digital brokerage platforms has made stock market investing more accessible than ever for retail investors in India.
Platforms like 5Paisa Capital Limited offer low-cost trading and a wide range of investment options through user-friendly online and mobile interfaces.
However, while such platforms promise affordable and convenient trading, some users have reported concerns about unexpected or excess charges in their accounts.
This article explores the issue of excess charges and brokerage churning complaints associated with 5Paisa and what investors should know.
5Paisa Excess Charges Overview
5Paisa Capital Limited is a technology-driven brokerage platform that offers a wide range of trading and investment services for retail investors.
Through its online platform and mobile app, users can trade in equities, derivatives, commodities, and currencies, while also investing in mutual funds, IPOs, ETFs, and bonds.
The company focuses on low-cost, digital trading with flat brokerage pricing and provides market research tools, portfolio analytics, and automated investment features to help investors manage and grow their portfolios efficiently.
Despite seemingly being a user-friendly platform, there have been quite a few complaints against this broker, especially for brokerage churning.
Brokerage churning in Stock Market happens when a broker trades too much in your account. Instead of focusing on your profits, they focus on their own earnings.
Each trade carries a fee, so by making unnecessary moves, they drain your balance through commissions.
It’s essentially putting their paycheck ahead of your financial goals.
5Paisa Complaints
This is what we know about 5Paisa brokerage churning:
|
Financial year |
Total clients | No. of complaints | % of complaints w.r.t. clients | Resolved complaints | % resolved w.r.t. Total complaints |
Arbitrations |
|
2022-23 |
549047 | 250 | 0.04 | 226 | 90.40 | 4 |
| 2023-24 | 549047 | 316 | 0.05 | 302 | 95.56 |
1 |
|
2024-25 |
422518 | 419 | 0.09 | 419 | 100 | 0 |
| 2025-26 | 343187 | 139 | 0.04 | 119 | 85.61 |
0 |
Complaints rose from 250 in 2022–23 to 419 in 2024–25, even though the number of clients actually fell from about 5.5 lakh to 3.4 lakh over the period.
Even though most complaints are eventually resolved, the rising complaints alongside a declining client base may indicate underlying problems that investors should pay attention to.
|
Financial year |
No. of complaints | Excess Charges complaints |
% of excess charges complaints w.r.t. complaints |
|
2022-23 |
250 | Around 55 | 22% |
| 2023-24 | 316 | Around 206 |
65.18% |
|
2024-25 |
419 | Around 205 | 48.92% |
| 2025-26 | 139 | Around 79 |
56.83% |
Complaints related to excess charges jumped sharply from around 55 in 2022–23 to around 206 in 2023–24, showing a sudden spike in billing-related issues.
In the following years, the numbers remained very high, with roughly half of all complaints linked to excess charges.
Even when total complaints dropped in 2025–26, approximately 56% of them were still about extra charges.
When a large share of complaints consistently involves excess charges, it can raise concerns about pricing clarity or fee transparency, which may leave some clients feeling they were charged more than they expected.
5Paisa Google Reviews
The Google review for the platform shows the first-hand experience of users. It seems many users were aggrieved by the excess charges imposed by the company.
For example, this user here claims that there are many hidden charges on the app despite the app’s portrayal of being “a low-cost” broker.
There has also been some unauthorized trading done by the broker from his account, but the customer service has remained unresponsive.
This user’s review is very recent and points out the same hidden charges pointed out by our previous user.
He says that the platform uses his funds without his consent and even charges very high hidden charges.
Considering the previous review is more than six months old, it seems the issue has remained quite persistent with no real solution.
Once again, one more user has come forward with the same complaint about additional charges and high costs.
It seems these are not isolated incidents, but rather an issue faced by the 5Paisa clientele at large.
When so many users complain about the same issue, but the platform does not fix the root cause, it certainly raises questions about how the clients are treated by this firm.
When to Take Action Against a Broker?
Brokers operating in India are regulated by the Securities and Exchange Board of India (SEBI) and must follow strict rules regarding transparency and fair trading practices.
If your account activity or charges start looking unusual, it is important to review the situation carefully rather than ignoring early warning signs.
Even small irregularities can grow into larger financial losses if they go unchecked.
One of the clearest signals is when your brokerage costs begin to eat into a significant portion of your investment returns.
- Trades appearing in your account without your clear authorization.
- Frequent buying and selling that does not match your investment strategy.
- Brokerage, taxes, and charges are rising disproportionately compared to your profits.
In such situations, start by documenting everything and raising a formal complaint with your broker’s grievance department.
If the issue remains unresolved, you can escalate it through SEBI’s SCORES platform or pursue arbitration through the relevant stock exchange.
Taking action early can help protect both your capital and your rights as an investor.
How to Report a Complaint Against a Stock Broker Online?
If you believe your broker has engaged in excessive trading or charged you unfairly, it is important to act quickly and follow the correct reporting process.
Proper documentation and escalation can significantly increase the chances of resolving the issue in your favor.
1. Document All Evidence
Start by collecting proof related to the suspected issue. Save contract notes, account statements, trade confirmations, screenshots of transactions, and any communication with the broker.
Keeping detailed records strengthens your case if the dispute needs to be escalated.
2. File a Complaint With Your Broker
Before approaching regulators, you must first raise a formal complaint with the broker’s customer support or grievance redressal team.
Explain the issue clearly, attach supporting documents, and request a written response.
3. File a Complaint in SCORES
If the broker does not respond satisfactorily within 15 days, you can file a complaint in SEBI and escalate the matter through the SCORES (SEBI Complaints Redress System) portal.
This platform allows investors to file official complaints against registered brokers and track the resolution process.
4. Arbitration in Stock Market
If the dispute continues, investors can proceed further by opting for arbitration through the stock exchange.
As part of this process, you may first lodge a report in SMART ODR, where the case is reviewed before moving to arbitration, and an independent authority examines the evidence submitted by both parties to reach a decision.
Need Help?
Dealing with brokerage disputes, regulatory complaints, and arbitration procedures can be complicated for many investors.
If you feel overwhelmed or unsure about how to proceed, we can make the process much easier, reach out to us.
From analyzing trading records to identifying hidden or excess charges, our team can help you understand exactly what went wrong in your account.
Our team assists investors by auditing brokerage statements, identifying suspicious trading patterns, drafting formal complaints, tracking SEBI complaint status online, and guiding them through the regulatory process.
With the right support, you can take action confidently and ensure that your investments are protected.
Conclusion
In conclusion, while 5Paisa Capital Limited promotes itself as a low-cost digital brokerage platform, the complaint data and user reviews suggest that excess charges remain a recurring concern for many investors.
A large share of complaints over multiple years points toward possible issues with fee transparency and trading practices.
For investors, this highlights the importance of regularly reviewing account statements, questioning unexpected charges, and taking timely action if trading activity or costs begin to seem unusual.
