Features of a trading account

The stock market can offer traders returns that may not be possible through traditional instruments. Therefore, individuals with a high-risk appetite invest in stocks. Stock Market provides many financial instruments to invest in, like shares, ETFs (Exchange Traded Funds), Bonds, etc. Each instrument has unique benefits that can help fulfil a financial goal. If you are new to the trading spectrum, you should understand trading accounts.

What is a trading account?

Online trading accounts have entirely replaced the open outcry trading system based on physically established stock exchanges. A trading account facilitates stock market participants to buy and sell dematerialised securities online. It is an account with a stockbroker to facilitate online trading transactions. It is linked to the bank account and users can add funds through their bank account to a trading account to start in the share market. A detailed view of all transactions is available on the trading platform.

The purpose of opening a trading account

The primary purpose of a trading account is to enable individuals to place trade orders on the stock exchanges. This trading platform is linked to formal stock exchanges, and you can trade various securities online at the exchange. You will need a trading account to place buy/sell orders in the stock market, whether you are involved in intraday trading, delivery trading, value investing, futures and options trading, etc.

Importance and need for a trading account

Since the stock trading process is now entirely electronic, a trading account is mandatory for an individual to participate in the stock market without being present at the ground-based stock exchange. Below are the key points indicating its importance:

• Hassle-free transactions:

  A trading account links the bank account and makes online trading systematic, from fund transfers to order execution. It makes the online transaction smooth and seamless for all your trades.

• Convenience:

  An online trading account makes trading convenient and accessible from anywhere, to a great extent which is one of the primary features of online trading. Login to your trading account and trade in the stock market using a mobile or laptop; all you need is stable internet connectivity.

What are the key features of a trading account?

• Identity Proof: A copy of your PAN card can serve this purpose. Ensure that your photograph and signature on the PAN card is clearly visible.

• Access point to multiple stock exchanges:

  A trading account is essentially the link between you and stock exchanges. Your trading account allows you to trade different types of assets, including equities, commodities, and currencies on the relevant stock exchanges simultaneously. Access leading exchanges, like the Bombay Stock Exchange (BSE), Multi Commodity Exchange (MCX), and others.

• The link between your bank account and your Demat account:

  It connects your Demat account and bank account to make online trading convenient and safe.

• Access to broker’s advanced trading platforms:

  Trading accounts are equipped with new-age technology and offer trading solutions with charting and analysing tools. It helps traders to make informed trading decisions to make significant returns.

How to open a trading account with BFSL?

1. Visit the official website of Bajaj Financial Securities Ltd (BFSL) and visit the account opening form.
2. Provide the required details, like your name, age, contact number, address, bank account, etc.
3. Upload digital copies of your ID proof, address proof, and income proof.
4. Select a subscription plan designed for beginners and professionals uniquely.
5. Record a short self-declaration video. Upload it to complete the verification process.
6. E-sign the application by submitting the OTP sent on your Aadhar-linked mobile number and verify it
7. Submit it online for trading account activation.

Thus, these features of trading accounts enable traders to benefit from stock market trading.