Open the Best Trading Account to do Online Trading

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          Best Trading Account | Image Resource: economictimes.indiatimes.com

 

For online trading you have to open a demat and trading account. Once you have this account you can trade online in equity, currency, futures and options and commodity. The demat account is used to store the shares and the trading account is used to do the transactions with the exchange. The demat account is opened in the depositories and the trading account is held by the broker.

 

To open a demat and trading account you can approach online broker who offers depository services. To open the account you have to fill and account opening form and submit it along with the required documents. There is a charge for opening the account which you have to pay. You have to be present for an in-person verification. The account is available to you within the three working days from receiving the account opening form.

 

When you want to trade online and want to buy shares from a trader the money is taken from your bank account to the trading account. The transaction with the exchange is done through the trading account. The shares are stored in the demat account. When you want to sell shares the shares are transferred from your demat account to the counterparty’s demat account. The money is transferred to your account.

 

Brokerage


When you trade online there are brokerage charges to be paid. The brokers offers different brokerage plans to suit the different trading needs. You should choose the brokerage plan that suits your financial needs.

 

You should check the brokerage you will have to pay before choosing a online broker. The best trading account is the one where you have to pay the lowest brokerage.

 

Brokerage plans


There are different brokerage plans offered by the broker. The different brokerage plans are as follows:

  • Value Plan

This plan is useful when you want to trade in small volumes and save on heavy brokerage. The brokerage is less than one paise. You get an high intraday exposure. You get margin against shares. There is no minimum commitment. It is best suited for traders with less volume.

  • Power Plan

This plan is useful when you want to trade only a few times and want to invest mainly. The brokerage is Rs. 15 per order. You get high intraday exposure. You get margins against shares. There is no minimum commitment. It is ideal for traders who trade less frequently but in bigger trade size.