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Trading Account has become the essential tool to invest in stock markets seamlessly. It makes the entire process of share trading secure and speedy. This article covers the following:
A trading account is used to buy or sell equity shares in a stock market. Previously, the stock exchange functioned on the open outcry system. In this, the traders used hand signals and verbal communication to convey their buying/selling decisions. Soon after the stock markets adopted the electronic system, trading accounts replaced the open outcry system. In the online method, the buyers and sellers don’t have to be physically present at the stock exchange to place orders. Instead they open a trading account with a registered stock market broker; who conducts trading on their behalf. Each trading account has a unique trading ID which is utilised to perform online transactions.
A trading account acts like a link between demat account and bank account of an investor. When an investor wants to buy shares, he places an order through his trading account. The said transaction goes for processing in the stock exchange. Upon execution, the required number of shares get credited into his demat account and a proportionate sum gets deducted from his the bank account.
A similar kind of process is followed in order to sell equity shares. The investor places a sale order for say 100 shares with the help of his trading account. It goes for processing in the relevant stock exchange. When the order is executed, the required number of shares are debited from his demat account and a proportionate sum gets credited to his bank account.
You may find multiple exchanges in India which trade in different securities and commodities. Some of the leading exchanges are National Stock Exchange (NSE), Bombay Stock Exchange (BSE), National Commodity and Derivatives Exchange (NCDEX), and Multi Commodity Exchange (MCX). Having an online trading account enables access to all these exchanges via common platform. Wealth creation becomes one-click away.
Equity investing is all about taking the right decision at the right time. Online trading platforms extend valuable services like research reports prepared by experienced and knowledgeable professionals. The reports enable investors to make informed investment decisions. Ultimately, there is a higher probability of earning higher returns.
Trained executives hired by online trading platforms provide customised support to the clients round-the-clock. It can be a technical issue or some other difficulty to handle the trading platform. Additionally, alerts can be set through SMS or emails in order to get notification about the buy and sell targets.
After trading platforms have become app-based, it has become easy to access them with the help of laptop, smartphone and other hand-held devices. Online trading has introduced the flexibility to keep a track of investments from anywhere and at any point in time.
Online trading has made the procedure of fund transfer and conducting equity trading very seamless. With the help of advanced technology, clients are in a favourable position to save and invest conveniently and easily.
Trading Account acts as an interface between investor’s Demat Account and savings bank account. The trading account opening procedure and the mandatory documents required are similar across organisations. Before submitting any document having an expiry date, ensure that it is valid on the submission date. Here is the detailed list of documents that you need for opening a trading account.
You may submit any one of these as a proof of income:
You may submit any one of these as a proof of identity:
You may submit any one of these as a proof of address:
In order to conduct equity trading online, you need to open an online trading account with a stock broker. Amongst thousands of clients, the broker may find it difficult to give your personal attention. Trading account makes the whole investing job a lot easier. You can open a trading account by following these steps: