The present scenario is a piece of evidence in itself that the trading world has become more accessible than ever. Although commenced back in the 1840s, the Indian trading system posed several restrictions for investors and traders back then.
However, with the Depositories Act, 1996, paperless trading turned as a possibility; hence, it paved a way towards endless opportunities in this stream. Today, since trading platforms are easily available, anyone with appropriate information can get into this venture.
Having said that, this post is dedicated to understanding more about the trading account and its varying aspects. Let’s read more about it.
Essentially, a trading account in India is an investment account that traders use to hold their cash, securities and other investments. It’s one of the essential tools to transact in securities, like selling and buying of shares.
In fact, in a few scenarios, like equity trading, it is not possible to trade if a trading account is missing. On top of that, an online trading account makes transactions efficient and faster.
Choosing a perfect one from a variety of options can send you periodic updates regarding the changes happening in the market. Also, there are some such accounts as well that allow you to place an order with special facilities, even if the market closes down.
The way you keep money in your Savings Account, the same way, your stocks are held in a Demat account. Whenever you purchase a stock, it is credited in your Demat account. And, upon selling a stock, the same gets debited from this account.
A trading account, on the contrary, is a medium to purchase or sell shares in the stock market. Whenever you are ready to buy shares, you would have to give a few details, and then, the buying is done through a trading account.
However, make sure that when trading in Indian stocks, you would have to open Demat account and trading account respectively.
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There is a variety of trading accounts that are available for trading stocks, gold, ETF’s, securities, currencies, and more. Some of the most common and best trading accounts are:
To begin the trading journey, the first and foremost step is to open a trading account. If you want, you can also go with an online trading account. Jotted down below are a few steps that can help you with the same:
The first step is to find a credible, SEBI-registered broker as you may have to open a DEMAT account. And, to help you out with the same, the selected broker should have a viable registration number issued by the SEBI.
Once you have found a reliable broker, go in more details and find out about their procedure of opening the account. Know more about the facilities they offer, their fees, additional charges, and more.
A typical procedure involves filling out a few forms, such as account opening form, client registration form, and more for KYC.
Submitting a handful of relevant documents is also necessary, such as ID proof, passport, aadhar card, driving license, and address proof.
It takes some time to process your documents and forms. And then, you receive your trading account after everything is verified.
Being an investor, having a trading account can help open several opportunities in this field. With an efficient and straightforward process, all you have to do is now find a reliable broker, fill up forms, submit documents and begin your journey.