What is Trading Account -

A trading account is used to buy or sell equity shares in a stock market. 

In the Past system, the stock exchange functioned on the open outcry system. In this, the traders used hand signals and verbal communication to convey their buying/selling decisions.

You can open multiple stock trading accounts but each one of them should be with a different broker. It is not possible to have more than one trading account with the same broker.

• Opening stock details of raw material, semi-finished goods, and finished goods.
• Closing stock details of raw material, semi-finished goods, and finished goods.
• Total purchases of goods fewer Purchase Returns.
• Total sales of goods fewer Sales Returns.

* How Brokerage Calculated?

Brokerage is that amount, which is payable by the investor to the broker on transaction of a particular trade. Look below Example for a better understanding.

Example :
If You Purchase : 1,000 shares @ Rs. 500 / each
And Sale : 1,000 shares @ Rs. 550 / each
Brokerage Charges @ 0.4%
Total Trade Value :
(1,000 x 500) + (1,000 x 550)
5,00,000 + 5,50,000
= 10,50,000/-

Brokerage Charge : 10,50,000 x 0.4% = Rs. 4,200/- payable by the investor.

* Difference Between Trading and Demat Account

A trading account is used to place buy or sell orders in the stock market. 

The Demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from.

You can open a Demat account online. 

*  Top % Banks For Open Demat Account

1. ICICI Bank - Demat and Trading Account.
2. HDFC Bank - Demat and Trading Account.
3. Kotak Bank - Demat and Trading Account.
4. Axis Bank - Demat and Trading Account.
5. SBI Bank - Demat and Trading Account.

How to open a Trading Account?

• You can open an account online and offline also.
• Online process - Open Your savings account Netbanking and apply for a Demat account Then submit you KYC.
• Offline Process - Visit Your bank fill account opening form submit KYC.

Important Point - For opening a demate or trading account mandatory that you have 18+ and have PAN card.

Thanking You, Happy Banking.