Trading in the stock markets is not possible without appropriate Demat account and Trading account, they are electronic or digital forms of your stock market securities, all the shares/securities you have brought or sold is done only with your Demat account or trading account. Unlike the earlier forms of trading in stock markets they offer much security and easy trading platform.
Opening Demat account:
The first step to open a demat account is getting a pan card, along with the appropriate bank account, cheques, address proof’s and applying for demat from a near by stock broker.
After applying for a Demat account the process completes within 4-5 days, you can also apply for a Demat account in online on website of your choice stock brokerage. While applying for a demat account should be very careful about signatures all signatures on your pan card, application, bank cheques address proofs should match.. Opening a Demat account with an good bank account having cheque book, online transfer, mobile transfer facilities is preferable even through, they are not essential for your demat account, they facilitate an easy way of trading and transfer between your demat, trading accounts and bank account. Most brokerages are opening Demat account at a cost of Rs.500/-. After opening of Demat account apply for trading account.
Trading account:
Within one day of opening of demat account you will got trading account if applied, the trading account acts much like your original demat account, it is just a easy user friendly facility created by the stock brokerages. Opening a trading is no risk but also faster all the work is done by your stock broker, generally it is opened free of cost, but Stock Exchanges or SEBI does not promise any security to your money in trading account as it is completely related your stock brokerage. Almost all trading is preferable through the trading account (expect long-term investment where demat account offers good security) the trading account offers
Facilities like:
“Easy trading without any relation to your demat account
Displays your account details instantaneously
Updates of the intraday, delivery margins.
Displays any messages you are getting from your brokerage (E.g.: stock tips)
Facilitates the online transfer and online trading in the stock markets
Easy trading by your brokerages without any signatures by persons, i.e. trading can be done by broker with a simple phone call.”
Now you are eligible to start trading in stock markets, you can also take sophisticated webtools for faster and convenient trading.
Online platform:
If you want to trade in shares without our stockbroker, you can! Using your stock brokerage website, login. And access using a user-friendly trading platform. What you need for this is opening an online trading account. Most brokerages suggest this at the time of opening trading account. But much care should be taken while trading using your online account, because putting a wrong order may leads to heavy losses in shares. So only trade with the guidelines of your broker first, and then trade 1 or 2 shares until you got necessary to access to online trading account. But trading using wifi or from Internet cafes is less preferable as they not provide enough security and less speed. Quoting in the order column is preferable than using in the market column as the alterations in your Internet speed may sell/buy shares at different prices. But also using installed trading software gives more security and speed than using the brokerage website.
Recently, Some brokerages like reliance money had launched mobile trading platform for its users which uses the Gprs enabled handset for its trading in shares. But, in fact SEBI is not permissioned the brokerages for starting mobile trading, as it is received many complaints in countries like u.s. but launching a mobile trading platform by avoiding all technical problems and at much faster, be definitely a boom to stock trading as in the conversion from the paper documents in trading to electronic trading as the mobile users in the Indian is far more than the internet users.
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