When a company lists on the stock market, its shares become available for trading on the stock exchange. Earlier, the exchange had an open-outcry system. In the mids, the stock exchanges adopted the electronic system. This means, all trades were conducted electronically.

You could do it through a computer, which would verify the details, the market price, and process the trade. For this reason, you need a special account through which you can conduct transactions. This is called the trading account.

How to Trade Using Online Share Trading Account? – Angel Broking

Without one, you cannot trade in the stock markets. You register for an online trading account with a stock broker or a firm. Each account comes with a unique trading ID, which is used for conducting transactions.

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 go to a shop and tell the seller that you want a packet of chips, you check the price, and finalize the transaction. Then, you take the money out of your wallet and give it to the seller. In this case, the wallet acts as the demat account, while you act as the trading account.

Just like the demat account, a trading account is a must for investing in the stock market. This is because to trade in the stock markets, you need to be registered with the stock exchange. Stock brokers are registered members of the exchanges. They traditionally conduct trades on your behalf.

Most often, stock broking firms have thousands of clients. It is not feasible to take physical orders from every client on time. So, to make this process seamless, it is advisable to open an online trading account. Using this trading account, you can place buy or sell orders either online or phone, which will automatically be directed to the exchange through the stock broker.

Link your trading and demat accounts.

The exchange will process your order. It will verify the details of the transaction, the market price, the availability of the shares in the market, and so on. It will also check the details of your demat account that is linked to your trading account.

This is especially so in case of a sell order. Place an order through your online trading account. This could be a market order, a limit or buy order, or an after-market order.

If your brokerage allows you to place orders through the phone, then you will need to supply your trading account details. Once the order is processed, the shares will be either deposited in or debited from your demat account. Transfer of shares is possible between demat accounts held with different DPs.

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You need to fill the Delivery Instruction Slip Book DIS and submit the same to your DP for transferring your shares from another demat account.

However, you need to check whether the central depositories are same or not CDSL or NSDL. If both of them are different, then you need an INTER-Depository Instruction Slip Inter DIS. If they are same, then you need an INTRA Depository Instruction Slip Intra DIS. Do try to submit that DIS when the market is on. Then, the date of submission of DIS and date of execution of DIS would be the same. Otherwise, there may be a delay.

You may also need to pay the broker some charges for the transfer. Congrats, now you know about the requisites for trading — demat and trading accounts. To open a demat account with Kotak Securities, click here. You can also open a trading account with us. Existing customers can send in their grievances to service. No need to issue cheques by investors while subscribing to IPO.

Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary broker, DP, Mutual Fund etc.

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Customer Queries Open an Account Activate an account Check Application Status FAQs. Kotak Research Center Sample Research Reports. Difference Between Demat Account and Trading Account WHAT IS A TRADING ACCOUNT? HOW TO OPEN AN ONLINE TRADING ACCOUNT? First, select the stock broker or firm.

Ensure that the broker is good and will take your orders in a timely manner. Remember, time is of utmost importance in the stock market. Even a few minutes can change the market price of the stock.

For this reason, ensure that you select a good broker. Every broker charges you a certain fee for processing your orders.

Some may charge more, some less. Some give discounts on the basis of the amount of trades conducted. Take all this into account before opening an account. However, remember that it is not necessary to choose a broker who charges the lowest fees. Good quality brokerage services provided often may need higher-than-average charges.

File Formats for Transfer of Shares to demat account of IEPF Authority

Next, get in touch with the brokerage firm or broker and enquire about the account opening procedure. Often, the firm would send a representative to your house with the account opening form and the Know Your Client KYC form Fill these two forms up.

Submit along with two documents that serve as proof of your identity and address.

Your application will be verified either through an in-person check or on the phone, where you will be asked to divulge your personal details. Once processed, you will be given your trading accounts details. Congrats, you will now be able to conduct trades in the stock market HOW TO TRADE USING DEMAT ACCOUNT? Previous Chapter Next Chapter. Mobile Trading with Kotak Stock Trader View Demo Desktop Trading with KEAT ProX View Demo.

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