Business

Benefits & Advantages of an Online Trading Account

Similar to your bank account, trading accounts work as a common platform where you can purchase and sell securities. Securities are acquired through your trading account, secured by digitally opening a Demat account, and finally, the payments are processed through the bank account that you have linked. Now that you know what is trading account, the next step is to understand what are the benefits of the same —

Reliable Information

Making the right decision at the right time is what you have to focus on while performing equity investments. Online trading domains offer effective services, including research reports. These documents are maintained by knowledgeable and experienced professionals. Additionally, the reports allow the investors to make an informed decision with regards to investment. When decisions are made with a knowledgeable approach, your earning potential increases.

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Flexibility

The advent of trading apps has made it easier for users to access on multiple devices. Online trading has introduced a flexible way of trading. It has enabled investors to track investments from anywhere and at any point of time. The app allows you to track your investment while you are on the go.

Customization and Notifications

Online trading platforms hire skilled executives to offer personalized support to their clients 24*7. Whether there are issues related to handling a certain aspect of the platform or technical issues, you get reliable support. Moreover, you can send the alert by either email or SMS to get notifications with regards to buy and sell targets.

Central Access

There are different exchanges in India, that are trading in various securities as well as commodities. Leading exchanges including National Commodity and Derivatives Exchange (NCDEX), National Stock Exchange (NSE), Multi Commodity Exchange (MCX), and Bombay Stock Exchange (BSE) work with a wide range of digital assets. With a trading account, you get one-stop access to all the exchanges through an integrated platform.

Easy and Efficient Transactions

Trading through a digital platform has streamlined the fund transfer process and made equity trading extremely seamless. By leveraging advanced technology, investors position themselves in a good position where they get to save as well as invest easily.

Process of Opening a Trading Account

To perform equity trading, you require an online trading account with a relevant stockbroker. Following are the steps involved in opening an online trading account:

  • Choose a reputed broker who can place your orders promptly/on time.
  • Every broker charges a certain fee to execute your order. Therefore, compare the brokerage rate of different brokers in your region. Moreover, ask about the available discounts to get enhanced services at competitive prices.
  • Contact a brokerage company and get informed about the procedure of opening a trading account.
  • You will need to fill up a form along with the KYC form. Also, you will be asked to attach certain documents.
  • Once all the documents are submitted, the firm will authenticate the details
  • Once verified, the firm will provide you with further trading account details.

Types of Trading Account Available

The trading account has helped traders in many/different ways. Hence, it is essential to have a trading account when you are trading in shares. Now that you have understood the process of opening a trading account, it is imperative to know about the different types of trading accounts that are available in the country.

Equity Trading Account: It is a type of trading account that helps you to trade in futures, options, and shares. It enables you to buy and sell shares of companies in the stock market.

Commodity Trading Account: Just like the name suggests, this trading account facilitates commodity trading. Commodity trading is essentially in futures and options of products like agriculture, minerals, and precious metals.

2-in-1 and 3-in-1 Account: With the inclusion of dematerialization in the trading world, things have become more streamlined for the traders. These all-encompassing accounts are meant to ease your convenience. A 2-in-1 account is a combination of trading and a Demat account, and a 3-in-1 account blends trading, Demat, and bank account.

Discount and Full-Service Trading Account: Discount trading account only facilities the generic trading services, whereas full-service trading account, will look after all the other value-added and trading services.

Leveraging an online trading platform makes it easier for you to invest in equity and gain a better return on your investments.