Scroll Top


    Trading Account

    What is a Trading Account?

    Any investment account which contains shares, cash, or other assets can be a trading account. The trading account most commonly refers to the main account of a day trader. Such investors tend to purchase and sell shares aggressively, often during the same trading session and their accounts are subject to special oversight as a result.

    The assets kept in a trading account are segregated from those who may be part of a long-term strategy of buying and holding.

    Basics of Trading Account

    Like every other brokerage account, a trading account will hold shares, cash, and other investment vehicles. The term can represent a broad spectrum of accounts, including tax-deferred retirement accounts.

    However, a trading account is generally distinguished from other investment accounts by activity level, the purpose of that activity, and the risk involved. The operation usually constitutes day trading in a trading account.

    Brokerage firms may also classify customers as trend day traders based on previous company or other fair inference. These firms will enable clients to open cash or margin accounts, but day traders typically choose the trading accounts margins. FINRA enforces special margin conditions that it considers to be standard day traders for investors.

    To open a trading account, certain minimum personal information, including social security number and contact details, is required. Based on the jurisdiction and its business details, your brokerage firm may have other requirements.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption