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Trade using Trading Account

How to trade online using a Trading account?

There were times when share markets were crowded with traders and investors gesturing and crying out to buy and sell shares. However, online trading has changed the game. Online trading was first implemented in India by the Securities and Exchange Board of India (SEBI) in January 2000. This digital mode took over the functioning of the market when the Indian regulations mandated every investor to get their online trading and demat account. The use of online trading and demat accounts has facilitated the reduction of paperwork and minimised the risk of fraud and theft associated with physical securities.

What is a trading account?

A trading account is an electronic account that is used to identify trading entities, place orders, and authenticate transactions. In simpler terms, it is a digital location where an investor places buy and sell orders. This account is mandatory for every investor to trade in shares and other financial instruments like mutual funds, commodities, derivatives, etc.

How to trade using a trading account?

The prerequisite to start trading is opening a trading account and a Demat account. Once you create a trading account and approach a suitable broker, this process is instant.

Under the broker's account creation portal, you will be guided through a few steps to create an account after choosing a broker.

  • Begin the process by filling in all the required details.
  • Submit all the necessary documents such as PAN, residence proof, address proof, income proof, etc.
  • Complete the Know your Customer (KYC) verification process.
  • Your account has been successfully created!

Following the creation of your trading account, here are the steps to begin trading:

  • Step 1:

    You should first deposit money from your bank account into your Trading account.
  • Step 2:

    Select the type of order that you want to place from the given options, like
    • Intra-day orders, where buying and selling take place in a single market session.
    • Delivery orders, where stocks can be held as long as you wish to hold them, etc.
  • Step 3:

    Indicate the price and the number of shares that you want to buy or sell.
  • Step 4:

    You can then submit your purchases on your broker's portal after all the selections are made.
  • Step 5:

    The request on your order to buy/sell will be notified to the stock exchanges.
  • Step 6:

    Trade is made once someone accepts your offer (for selling) or your order (for buying) with the exchange of money and shares.
  • Step 7:

    Stocks will be held in your Demat account until you trade them further using your Trading account.

Choosing an online trading account

The importance of finding the right broker cannot be overstated. From choosing a broker to creating your trading account, every decision you make in a share market needs to be carefully researched. Before choosing your broker, consider the following factors:

Quality of service

Quality is assured when the deliverables are as promised. Choosing a brokerage with a complete understanding of the market and dispute redress mechanisms is of utmost importance.

Market reputation

Reputation builds when there is proven expertise and a stronger market presence, in addition to the quality of service delivered. When choosing a brokerage, this is a key factor to consider, and that’s why m.Stock is one of the fastest-growing platforms with a global presence.

Feasible charges

Different brokerages have different charges that vary concerning the services they provide. Trades may be charged differently depending on the number of shares held, the number of trades made, and the price per share. However, that is not the case with m.Stock, as it offers zero brokerage for life and has no hidden charges, all for a one-time fee of ₹999.

Additional services

In addition to account creation, some brokers may also offer trading advice that provides support to a new investor and helps in making an informed investment decision.

Bottom line

The revolutionary mechanism of online trading accounts has made investing in the stock market efficient. An investor does not necessarily have to visit a bank or a broker's office since the online trading account provides one-point access to address these needs and accessibility to different stock exchanges. m.Stock has made the process further easy and more convenient with a smooth and easy onboarding process.

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