Share market is often a lucrative investment practice, where an investor has to go through defined process. However, investors no longer require to involve any third-party to invest in shares and other securities, all thanks to online trading account for making the share trading easier, convenient, and hassle-free.
With the coming up of electronic system, trading account replaced the traditional open outcry system where the traders used gestures and verbal communication to trade in the market.
A trading account is used to hold any investment account, such as shares, bonds, mutual funds, and securities. This account can be used to buy and sell shares and securities at the convenience of the investor or trader. Most often, trading account is a primary account for the traders and investors. These investors or traders tend to buy and sell the share and securities more frequently, often within the same trading session.
Technical advancements have made it easier for the traders and investors to trade in share and equities right from their comfort. Using the trading account, an investor can trade 24*7 without any geographic restriction. Trading account can be accessed from anywhere by providing the unique login credentials.
Often people confuse trading account with the demat account without realizing that there’s a thin-line difference both. A trading account is used to buy or sell orders, whereas the demat account is used to hold the shares.
Demat account holds shares and securities that are converted from physical into electronic format. Whereas, a trading account is linked to a bank account and demat account to have a smooth and hassle-free trading process.
A trading account is basically a link between demat account and a bank account, so that when an investor wants to trade in share market, he/she can place an order through this trading account. The transaction request is processed by the stock exchange and the requested number of shares are credited into the demat account upon approval and a proportionate amount gets debited from the linked bank account.
Single accessibility – The Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), the National Commodity and Derivatives Exchange (NCDEX), and the Multi Commodity Exchange (MCX) are some of the primary stock exchanges. One of the many benefits of trading account is that an investor can gain accessibility to all the stock exchanges through a single platform.
Flexibility – With faster technical developments, trading accounts have become app-based platforms, thus making it easier to access the account from anywhere and at any time. Online trading accounts are extremely flexible as compared to the traditional trading methods.
Well-researched analytics – Share market is an unpredictable market and thus, learning about the right strategies is important to make the right moves. As online trading platforms provide extended services like research reports and market predictions, it is helpful for the investors to trade in the market at the right time in a fruitful way. Right trading decisions improves the probability of earning higher returns on investment.
