Indians have increasingly started to invest in the stock markets. The emergence of research-oriented trading platforms has bolstered the growth in the number of traders. With new-age trading platforms, you can buy securities anytime & anywhere. The entire process might seem simple, but you need to understand the basics of online trading first. Ask any expert, and you will know that the first step is to open a trading account with a registered stockbroker. Read on to understand the pros of having a registered trading account in India.
Understanding the basics of a trading account in India
How do traders buy and sell financial securities on the Bombay Stock Exchange, National Stock Exchange, or any other exchange? Buying and selling financial securities is not facilitated by a traditional bank account. To do so, investors require a special financial account known as a trading account. After observing market movements and asset prices, you can place an order via a trading account. Some investors might refer to it as securities, stock trading, or investment account. Since digital trading came into the picture, investment accounts have become essential. With an trading account, you do not have to be physically present at the stock exchange to place an order. You can place orders anytime within the Indian stock market trading hours. Usually, investors can access details on market and price research on the trading platform.
A registered stockbroker in India can help investors open a trading account. Every account comes with a unique number that facilitates securities transfer. Similar to bank accounts, traders are allowed to have multiple investment accounts. An investment account will act as a bridge between the bank account and the Demat account. It is crucial to note that the investment account will only be used to buy and sell securities on Indian stock exchanges. Traders will rely on their bank accounts to add funds to the investment account. After securities are purchased, they are transferred into the associated Demat account. Consider the demat account as a space for storing/holding securities in their digital form. When you decide to sell assets via the investment account, securities are withdrawn from the respective dematerialisation account.
Are you familiar with the advantages of a trading account?
Now that you understand the working of a trading account, here are its benefits:
Traders cannot make the right decisions without knowing the price changes, market movements, and other details. As discussed earlier, a trading account comes with a new-age trading platform, which offers access to price fluctuations, market reports, research insights, and more. In addition, many stockbrokers provide value-added services like personalised market reports and data insights via their trading platforms. It allows traders to make accurate investment decisions and generate high returns in the future.
A one-stop solution
With an investment account, traders can access different stock exchanges in India besides popular stock exchanges like BSE and NSE. Traders can buy assets like stocks, debentures, derivatives, commodities, and currencies. It also allows them to diversify their investments without the help of a middleman. Consider your trading account as a one-stop solution for all your investment needs in India.
A trading account can help traders track their portfolio anytime. Also, there is no restriction on the devices used to access a trading account. You can access the same through your laptop, smartphone, tablet, or any other media device registered with the account.. You can access your Indian investment account from foreign country to see the price changes. The increased accessibility has allowed traders to make decisions faster and earn returns.
Stockbrokers offer customisable trading platforms for enhanced decision-making. For example, you can activate push notifications for specific securities. If there are any sudden price changes, you will be notified with an in-app or over-the-top notification. Similarly, alert messages and email facilities are available on new-age trading platforms. These customisation functions allow traders to make decisions at the right time and maximise their returns. Trading platforms might get even better in the future.
Seamless transfer of securities
With a trading account, traders can securely transfer their securities into Demat account. A seamless transfer of securities occurs when an investment account is linked with the demat account.
In a nutshell
Without a trading/investment account, one cannot buy/sell assets on stock exchanges. Before choosing a trading account, don’t forget to consider the reputation of the stockbroker. Then, choose a trading platform that offers market reports, customisation options, and research support. It’s time to open your investment account and start trading.