30 November 2022, 7 min read
A trading account is essentially a link that establishes a connection between you and the stock exchange. It is opened via a stockbroker who is registered with the exchange and executes the transaction seamlessly. With an active trading account, you can buy and sell shares. If you are above 18 years of age and are an Indian resident, then you can easily open a trading account that is mainly available in two types.
A standard account offered by most brokers in India is an equity trading account. With this account, you can trade shares, derivatives and currency contracts. However, to be able to trade commodities like gold, silver, crude oil, etc. make sure to open a commodity trading account. This account is separate from the regular trading account as the commodity segment is governed by a different regulatory authority that demands different norms.
So without further delay, let us explore further starting with the features of a trading account.
Based on the investment dealer you select, the features of a trading account may vary. However, as a smart investor, you should be looking for certain attributes in your trading account.
Some of these characteristics are mentioned below.
The trading accounts provide you access to advanced stock charts that are useful in analysing the price action. These charts form a backbone of technical analysis that is used in intraday trading. You can benefit from the indicators available on these charts to study the historical price movement and build a trading system.
Whether you are a beginner or a seasoned trader, a simple yet powerful UI must be a primary feature to look for in a trading platform. An ideal trading account provides you with a platform that is not overpopulated with unnecessary features but focuses on useful ones.
Along with decent features, choosing a dealer with an affordable brokerage plan is also important. This will ensure that the average cost of the transaction remains under budget and your take-home profits are optimal.
Even a tiny glitch during trading hours could cost traders a fortune. Therefore, getting a seamless service is of utmost importance. Here, a wise choice would be to go with Ashika Group’s Dhanush, one of India’s most reliable trading platforms. Every year, it smoothly handles trades worth more than ₹5 lakh crores of its 125,000+ happy clients.
Most trading accounts these days offer multi-devices support. Meaning that you can conveniently access trading platforms and other back office documents like contract notes, global profit and loss statements, holdings statements, etc. from any device.
Trading accounts offer a Tax P&L Statement that shows all your trading activities spread throughout the financial year in one place. This statement forms valuable input while filing income tax returns. Some trading platforms also have a feature where you can import the relevant details from this statement directly to your ITR filing software.
Now that you know what the features of a trading account are, let us explore the advantages that you can get from owning it.
A trading account offers you one-point access to almost all financial instruments like equity, derivatives, and currency contracts. Nowadays, many brokers offer equity as well as commodity trading on a single platform. So opening an account with a dealer who is registered with all the exchanges can be more advantageous.
One of the biggest plus points of owning an online trading account is that you can access it from anywhere. To access your trading account, you only need an active internet connection and an electronic device like a smartphone, laptop or tablet. Buy and sell orders can instantly be placed using any of the devices.
Your trading account offers you the flexibility to place off-market orders. For instance, if, for some reason, you cannot access your account during a particular trading session, then an off-market order can be placed in advance. The dealer saves the order until the market opens and then sends it to the exchange for execution. Subject to the price, your order gets executed even while you are away from your trading terminal.
A trading account transparently lets you buy and sell instruments as you can access the live data right on your screen. While analysing the charts, you can track the price and place orders simultaneously. You can make a better decision from the comfort of your home rather than visiting a broker’s office, asking for the price and placing verbal orders.
A trading account is interlinked with your bank account and a Demat account. A Demat account is a repository where the shares you purchase on a delivery basis are stored. When you buy or sell shares, your Demat account is debited or credited with such quantity. And when you add or withdraw funds, it directly takes place through your bank account.
There are discount brokers and full-service brokers that offer broking services in India. As a trader, you have the freedom to choose a dealer as per your requirement. While discount brokers offer low-cost services, full-service brokers are premium ones but offer additional facilities like portfolio management, trading calls, etc.
All thanks to advanced technologies like machine learning and AI, brokers nowadays offer you personalised research. Some also provide a platform where you can build trading strategies and back-test them before implementing them in the live market. You can also benefit from mock trading sessions conducted by some brokers to understand how the orders are placed before starting real trading.
Once your trading account is set up, you can start enjoying all its benefits. However, choosing a reliable broking firm is crucial to make the most of this journey. Ashika Group’s Dhanush platform can be your one-stop shop for trading and investing in equity, derivatives, mutual funds, IPOs, and more.
Backed by top-notch technology, it allows you to start global investing and apply Algo trading strategies. Make use of the advanced features and engage in a delightful trading experience with Dhanush. Join Today!
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