Trading accounts are a new concept to several people in India. Most of the common people do not know even the existence of a Trading account until a few years ago when the stock markets began to be fully computerized. After this, online trading and free trading websites or platforms were launched which rose to popularity in several countries including the United States and England. All of a sudden, people with some idle time and some extra cash could try their luck with the stock market and increase their earnings considerably. The trading accounts played an important role in the development of online trading as trading accounts were used with demat accounts to buy stocks online. Most of these accounts require fewer procedures for opening an account and have attractive brokerage rates.
What are the Trading Accounts?
Trading accounts are generally used to buy and sell stocks online. It is used with demat accounts to buy and sell shares. Demat accounts are used to store money meant to buy stocks which are transferred to the trading account at the time of purchase of stocks. Trading accounts are offered by many firms, and all the accounts come with a unique trading ID which is used to identify the person involved in trading. There are rules that specify that people should buy stocks from government recognized stock brokers only, trading accounts are supplied on behalf of such stock brokers, and you can start investing as soon as you receive your accounts. Furthermore, trading accounts could be used from anywhere at any time and are generally more portable and practical for people with day jobs. Most of the banks nowadays have trading and demat account facilities for their customers.
How to open a trading account ?
Opening a trading account is simple and less time-consuming. Nowadays all major banks offer its customers demat and trading account facilities. All you need to do is choose a suitable broking firm with the right brokerage rate, contact them and upload KYC documents. Your trading account will be verified by the authorities within a week’s time, and you will receive your trading account details. You can start trading almost instantly after receiving your trading account.
What are the benefits of using Trading Accounts ?
- It is easier to buy and transfer stocks than traditional trading practices. It also has better accessibility than traditional trading practices. There are also provisions to trade over phone or online.
- Trading online has lower brokerage rates than traditional trading. There are stock trading platforms such as Angel Broking, Zerodha, Sharekhan and Motilal Oswal which offers Trading accounts at low brokerage rates.
- There are sophisticated software and stock forecasting tools based on real-time data processing that is supplied by the firms for their trading account holders. These tools give you an advantage over other traditional trading facilities.
- Trading Firms employ experienced consultants and customer care executives to provide the best facilities to you. They work around the clock to assist you in any possible ways. Alerts are sent regularly to you so that you don’t miss any great opportunity. There are also experienced personnel to take care of any technical problems that you may face.