What Are The Fees & Charges on a Trading Account?
The concept of trading has got revolutionized with the inception of the Demat Account. Investors now can trade stress-free unlike before where physical shares were exposed to risks, such as getting misplaced, damaged, or being stolen.
As a Demat account holds the share certificates, one can get the certificates easily from the account. Be it investing or holding shares and securities, a Demat Account has made it much easier, cost-efficient, and faster. One can open an account online at the comfort of their homes, without any disruption in their everyday life.
An investor must have a trading account as well. Most stockbrokers nowadays allow investors to open a trading account during the Demat account opening procedure. They also allow free online Demat and trading account opening for investors.
What Is A Trading Account?
Just like a Demat Account which holds the shares and securities of an investor, a Trading Account is required to sell the shares and securities. It is linked to the bank account so that investors can use the money to buy or sell the shares.
A trading account is similar to a bank account and is primarily used for transactions. An investor can hold multiple accounts depending on the trading strategies. Both individuals and businesses can open a trading account to buy/sell shares, commodities, derivatives, and futures in the financial market.
The commission rates however might vary from individual accounts to business accounts. It will depend solely on the stockbroker and can be charged a flat fee per-trade or a per-share fee.
Why Do You Need A Trading Account?
There are several reasons behind having a mandatory trading account for investors:
- A trading account reflects the ratio between the price of goods sold and gross profits.
- It helps in measuring the profitability of an investor.
- It helps in speedy trade execution.
- It helps to set trading limits to maximize profit.
- It allows special services, like placing orders even after the market hours.
How Can You Open An Online Trading Account?
You can open an online trading account with any reputed stockbroker in the financial market.
Investors need to:
- Submit a proof of address (Aadhar/Voter ID/Passport/Utility bill/Driving License)
- Have a valid PAN card
- Must be an Indian citizen
- Must be 18+ years of age
What Are The Charges Of Opening A Trading Account?
The trading account opening fee varies from one stockbroker to another. In most cases, investors are charged nominal fees for opening and maintaining the account. Some full-service brokerage firms allow free account opening for the first year followed by a one-time annual maintenance charge (AMC) of Rs 295.
In the financial year 2021, investors in India opened a record of 14.2 million new Demat accounts. To manage this growing influx of new traders, each trader is now allotted a unique trading ID which will help SEBI to identify the traders and their transactions.
With the ease of Demat and trading account opening online, and the necessary steps taken by SEBI for safeguarding the account of investors, now is the perfect time to open a Demat and trading account and invest in the stock market.
Follow – https://bitcointodays.com for More Updates