Feb 09 2022 5 Min Read
To trade in the market, be it the cash segment, derivative, or commodity, one needs to have three accounts in place. A Premium Account where the shares will be stored, a bank account that will finance the buying of shares and receive money when shares are sold and a trading account to carry out the transaction.
A trading account is a platform where a buyer and seller meet to complete a transaction. A trader places an order to buy securities through his/her trading account. The stock exchange processes the transaction order and allots the required number of shares by crediting it to the Premium Account . Once the trade execution gets over, the money will be debited from the trader’s bank account to finish the trade.
When it comes to the selling, the process is reversed. A trader puts his request to sell the securities from the trading account. The order is then submitted and processed in the stock exchange. Upon execution of the order, the set number of securities or shares are debited to the trader’s Premium Account . Post the sale, the proceeds are credited to the bank account.
There are broadly two types of trading accounts
This trading account takes care of all basic investment requirements. It allows trade equity –intraday trading, F &O trading, exchange-traded funds (ETF), mutual funds and currency futures.
This account is used to trade in the commodity market such as gold, platinum, silver, copper, crude oil etc. But this requires opening an account with registered commodities exchanges like MCX or NCDEX.
It’s obligatory on the part of every person to have a trading account if he/she wants to start trading in the financial stock market. Well, this account offers innumerable benefits to the traders, if used properly.
One of the best reasons to open a trading account is to have easy access to multiple leading stock exchanges in India. You can trade on any exchange you want and make profits through the transactions via your trading account. You can find all your investments, buy and sell orders placed, profits earned, payments made, expert recommendations, and many more details related to the stock market and trading account. You are just a tap away to access the top stock exchanges in India like the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), National Commodity and Derivatives Exchange (NCDEX), and Multi Commodity Exchange (MCX).
Trading is a tricky business, one wrong move, it’ll eat up all your trading investments. Opening an online trading account secures traders by protecting continuous movements in the prices of the shares and the stock market. Moreover, it adds value to your investment by offering plenty of other stockbroking or depository services. For instance, some broking firms provide research reports to the traders. It helps them to compare the stocks and make their next move while trading.
Depository participants or stockbrokers are available 24*7 to support you with their trading account services. Right from opening your trading account to providing research reports to customization, the DPs are available all the time at your service. Additionally, you can subscribe to push notifications to receive trading and investment and buy and sell alerts. These options will help you in the long run, especially while making your trading decisions.
Be it an app or a website, convenience and comfort is the key to expanding your business further and retaining your customers. This goes the same with the trading accounts. Every depository participant or stockbroking firm has its own application and website to access deftly. As everything is online now, so is the trading account, it has become easy for traders to stay connected with the stock market on their gadgets like smartphones, laptops, PCs, or anything that has a big screen and internet connectivity. A system like this enables traders to access trading platforms wherever and whenever they want with just a push of a button. Plus, they can also monitor their transactions and trades in just one go.
No one wants to wait in long queues to buy or sell shares. Thanks to the origination of trading accounts, it saved time, energy, and cost for the traders. It gave rise to hassle-free trading, making investments easy and accessible at any point in time. Even buying and selling activity in the stock market has become plain sailing and unchallenging like before.
To trade in securities you definitely need a demat and trading account . But if you’re trading in futures and options, you don’t even need a Premium Account . A trading account will suffice. The steps to open one are
To ensure that your trading goes smooth and effortless requires a lot of work and effort from the broker and to ensure that you don’t face any hassles or struggles the brokers charge a nominal fee for maintaining the account. TradeSmart however offers a free trading account for the first year to encourage new traders to try their luck in the stock market. The various detailed charges can be summarized below.
| TradeSmart Charges | EQUITY Delivery | EQUITY Intraday |
| Brokerage | Rs. 15/trade | Rs. 15/trade |
| STT | 0.1% | 0.025% |
| Turnover Charges | 0.00297% | 0.00297% |
| GST | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp charges | 0.015% | 0.003% |
| TradeSmart Charges | EQUITY Futures | EQUITY Options |
| Brokerage | Rs. 15/trade | Rs. 15/trade |
| STT | 0.02% | 0.1% |
| Turnover Charges | 0.00173% | 0.03503% |
| GST | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp charges | 0.002% | 0.003% |
| TradeSmart Charges | Currency Futures | Currency Options |
| Brokerage | Rs. 15/trade | Rs. 15/trade |
| STT | NIL | NIL |
| Turnover Charges | 0.00035% | 0.0311% |
| GST | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI charges | 0.0001% (Rs 10/Crore) | 0.0001% (Rs 10/Crore) |
| Stamp charges | 0.0001% | 0.0001% |
| TradeSmart Charges | MCX Futures | MCX Options |
| Brokerage | Rs. 15/trade | Rs. 15/trade |
| STT | 0.01% | 0.05% |
| Turnover Charges | 0.0021% | 0.0418% |
| GST | 18% on (Brokerage + Transaction Charge) | 18% on (Brokerage + Transaction Charge) |
| SEBI charges | 0.0001% | 0.0001% |
| Stamp charges | 0.002% | 0.003% |
When it comes to brokerage, TradeSmart offers some of the best and most affordable prices for traders.
The trading account keeps a track of the daily trade activities of the trader. You cannot place a buy or sell order without the trading account. If you are planning to open a trading account jointly with a Premium Account , approach or visit a registered depository participant or a stockbroking company. Case-in-point, TradeSmart is one such top broking company that offers customized trading services for all traders and investors.
If you don’t use your trading account anymore, it’s obvious that you are not using your Premium Account . After a period, your Premium Account will not be accessible anymore and become inactive. You’ll not be able to do any trade activities from this account as well. To restart your transactions, you have to revive your account again by filling and submitting the application form along with the e-KYC verification.
Of course, you are obliged to present all the holders’ signs on the modification application without fail.
While filling the application forms, minor mistakes happen. It can be like entering the wrong date of birth, wrong address, wrong email address, etc. If you are filling the form online, you can always take a new form in case of errors. If you are filling the form offline, you can inform your stockbroker in case of errors and ask for a new form. You won’t be charged any money for filling another form.
Yes, your account opening fees will be repaid after a certain period. The number of days required to repay the account opening fees to the rejected applicants differs from one broker to another. In case, if the applicant has not furnished all the necessary documents within the stipulated period post fee payment, then he/she won’t be getting back any refund.
Yes, a trader with a trading and Premium Account with a registered stockbroking company along with a smartphone and internet connectivity can place orders online. The stockbroking company should have a separate trading portal and an app that mimics the online portal. Only then a trader can place orders. Before doing so, the trader has to activate their mobile trading platform by sending an online request to their respective stockbroker. As and when your request is approved by the broker, the trader receives the login credentials to start trading.
Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.
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