Earlier it were the stockbrokers who used to invest on behalf of you. They tend to invest in the companies that they found worth investing in. But moving with the time, stockbrokers have started customizing a lot of services that comfort client’s tastes well. Accrediting you to be the sole person for all your investments, it is only you who choose the companies you bother to invest in. Hence now with the introduction of an online trading account, the investors are free to trade as per their individual preferences. Now here you will have a pop up in your mind...
One cannot trade with the access of only a Demat Account. The reason being Demat Account or Dematerialised account is maintained just for the holding of your securities electronically. In addition, a trading account been similar to one of your bank accounts is linked to your Demat Account and is purely used for the tradings which are based on monetary affairs. More precisely, the money invested and gained through the share market is transacted through Trading Account.
Market Information: When you have access to Trading Account, you get to witness the real-time updated market information with regards to the stocks and companies.
Easy Transactions: With the smooth platform, the Trading Account lets you have easy buy and sell of your securities without any interruptions.
Quick Transactions: One can quickly transact its securities through Trading Account without sensing any lags while transacting in the stock market. Additionally, you need not travel to your respective stockbrokers' offices to clear your transactions.
Multi-Source Use: You can either use a desktop or any smart device to eloquently create your transactions on your own.
Special Facilities: You can even place your order through Trading Account after the market order.
One-Press Orders: Having a Trading Account will let you trade through your smartphones too. This will further permit you to trade on just a single click and there you can punch your orders.
Stress-Free Trading: Post punching your orders, the back-end work is looked at by your online broker in India. However, you just need to punch your order and stay relaxed.
Chat Option: You need not worry about any snag occurring while using the Trading Account, you can directly communicate it to your broker via chat option, if in case you are in mid of something.
An investor has a choice of variations in Trading Accounts available for itself. Whether you are in the urge of playing in securities, Gold, Currencies, Stocks, ETFs, or any other, here at Lakshmishree Broking you are open to all the types of Accounts. Here is the list...
-- Derivatives Trading Account lets you earn profit through estimating the future value of underlying assets like stocks, index, interest rate derivatives, and so on...
-- Online Currency Trading Account allows you to hold deposits for the speculation on currencies in the foreign exchange market.
-- Online Commodities Trading Account can be relatable to the Stock Market. Here an investor trades on goods instead of stocks and securities.
-- Equity Trading Account permits you to invest in Mutual Funds, Currency Derivatives Instruments, IPOs, and Equity.
The Trading Account is as crucial as the Demat Account in order to smoothly trade in the stock market. Trading Account Opening is similar to opening a Dematerialized or Demat Account. Moreover, having a Trading Account is quite feasible that seamlessly lets you trade your stocks and securities without holding any interruptions. Here are the simple steps involved to open a trading account in India.
Selecting a stockbroker or firm that can better fit your requirements is the most vital step in the whole Account Opening process. The reason is, you being an investor would likely be out of time while trading shares online. Therefore, ensure to have a Broker that can serve you good quality.
You shall cross-confirm the services that selected brokers can deliver you most importantly on the rates that suit you well. Because every single broker has their own different charges for the services rendered to you.
You might find the brokers that lend you with the paper listed services at the utmost low processing fees. However, practicing a little groundwork with regards to that broker and check for the actual services offered by them. Because most of the time, when it comes to charging fewer fees, the quality of service degrades.
Ring up the broker to enquire every single detail starting from account opening, transacting, and closing of an account. You being the owner have the right to know about all the charges which also includes the hidden charges.
Generally, the Broker Firms send their representatives to your place for filling up the needed forms and performing KYC. You may further submit the form along with your Address, Income, and identity proof.
Your application would be either verified through means of In-person Verification or through the phone as per the rules of the Broker Firm.
Once the verification is authentically completed, you are offered with the login Id and Password for your Trading Account to quickly start your stock transacting.
When it comes to transferring funds to and fro from your Trading Account, earlier it used to cover approximately 3 to 5 days to get reflected. However, the lagging of fund reflection into the account has many times risked the trades of the investors too. But in this era the technologies these days have got you all covered up. Presenting you with the several easy methods to let you play with your funds across your Trading Account, you can quickly access either of them at your convenience.
-- It consumes a few seconds to transfer your funds through UPI to your Trading Account.
-- You can alternatively transfer your funds by Payment gateways. One of the most trusted payment gateways is ATOM.
-- Get your funds deposited through RTGS/NEFT/IMPS if you are out of the internet.
-- The issuance of Cheques to deposit funds into your Trading Account takes only one paper to be inked.
To mention yourself as an investor and to trade in the stock market, no doubt Demat Account is the must-have basic for your investment journey. But additionally, the Trading account also plays an important role as a Demat Account for your Investments. One can hold its securities and shares in the Demat Account and the only way to transact them in the market is having a Trading Account. It permits you to proceed with the buying and selling of your shares.
In simple terms, you may consider Demat Account as your Wardrobe where you store your clothes and your personal Wallet as your Trading Account through which you can Buy and Sell your Clothes.
| Demat Account | Trading Account | |
| Nature | One can safeguard by holding shares and securities in the Demat Account. | It is tagged as the Bank Account for your shares that are held in your Demat Account. |
| Function | The Demat Account permits investors to hang on to their physical shares electronically. | You can transact the shares through Trading Account that are secured in your Demat Account. |
| Role | A perfect place for investors who tend to safeguard their shares for long-term investments. | It is preferable for investors who practice short-term investments. |
| Approvals | Your Demat account can only be opened at NSDL /CDSL. | It needs to be approved as per exchanges to transact in any particular exchange |
| Maintenance | You need to pay Annual Maintenance Charges for the services of Demat Account. | There are no AMCs tagged here. |
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