Types of Trading Accounts in India

Last Updated on October 27, 2023 by BFSLTeam BFSLTeam

In this post, we’ll explain all the essential details of the main types of trading accounts offered in India and how they can help enhance your investment strategies and potential profits. Keep reading to find out which one is best suited for meeting your goals!

Trading Account Types

Let’s get on with the different trading types in the stock market where you can potentially invest in India.

Equity Trading Account

Equity trading accounts are a great way for traders to access stocks, futures, options, currency derivatives, and more – giving them the ability to take advantage of plenty of investment opportunities.

But if you’re looking to go beyond investments and want full access to initial public offerings or the delivery of stocks – then you will also need a Demat account. However, an existing or new trading account is sufficient for investing in futures and trading options – since no delivery is involved.

Additional Read: Scalping Trading

Commodity Trading Account

Before you hop into the commodity market, there is a crucial step: opening a commodity trading account ! Unlike with an equity trading account, when it comes to commodities, your account needs to be opened with a registered commodity broker and recognized exchange in India which includes,

• Multi Commodity Exchange (MCX)
• National Commodity and Derivatives Exchange (NCDEX)

In fact, commodity trading was recently taken under the purview of the Securities and Exchange Board of India (SEBI), so you’re in good hands! While trading in commodities may be slightly more complex than its equity counterpart, it can definitely boost your portfolio if you understand how to invest wisely.

So don’t fret about the paperwork – get a commodity trading account today and wave goodbye to lackluster returns!

Offline and Online Trading Accounts

If you’re still stuck in the dark ages, trading offline might be the way to go. With an offline trading account, you can place orders without a computer or smartphone in sight – just pick up the phone, call a broker, and be done with!

But if convenience is your thing, online trading accounts are the way to go. Thanks to modern technology, you can now do your own trading with a few clicks at any time. All you need is an application and an internet connection to get started!

2-in-One and 3-in-One Trading Accounts

For any investor looking to jump into the stock market, three types of accounts are a must-have– trading account, a bank account, and a Demat account. With these in hand, you can move money from your bank to the trading account and use that to buy shares.

Now, here’s where things could get complicated: those stocks will then be stored in the Demat account! Fortunately, many brokerages provide a 2-in-1 or 3-in-1 package, combining all two or three accounts together, helping you make hassle-free transfers with both money and shares. They usually offer them through partnering banks as well. What’s not to love?

Discount broking Account

A discount broking account is possibly the most efficient way to trade high volumes at low costs – no frills attached! Though they may not offer any discretionary advice or research reports, what they do provide is unbridled access to online trading platforms, giving traders a great opportunity to make informed investments.

Plus, with just the singular call-and-trade facility (which may vary in terms of charges) they help ensure that you get to trade only when and how you want it.

Full-service Broking Account

With a full-service trading account, investors don’t need to worry about missing out on precious insights into current market trends and news developments. They get to benefit from advisory services that provide sound financial advice which removes the hassle of scouring through reading materials, trying to decipher each one’s impact on the stock prices.

In addition, integrated research tools allow investors to smoothly transition between monitoring market performance and carrying out trades; this equips them with the ability to stay up-to-date on what’s happening while skipping out on time-consuming manual data collection.

All in all, a full-service trading account makes investing simple and convenient so there’s no need for potential traders to fear being left behind.

Conclusion

There are different types of trading accounts in India that offer various features and benefits. We have covered all the basics of trading account types here so that you don’t have to worry about the trading account is which type of account anymore.

You can choose the best one that suits your requirements and investment objectives. However, it is always advisable to consult with a professional financial advisor before making any decisions.

The experts at Bajaj Financial Securities Limited can help you choose the right trading account for you and assist you with opening an account seamlessly. So, what are you waiting for? Talk to us today and let’s get started on building your future!

Frequently Asked Questions