Stock market trading and investment have gone completely online, and now you do not have to depend on your broker to place your trading orders or deposit or withdraw money. You can do everything by yourself just by opening a brokerage account. The brokerage account is a trading account that every trader and investor needs to have to buy and sell the securities in the stock market.
How Does a Brokerage Account Work?
A brokerage or trading account is the platform where you can track all the securities, check the prices, volume, and other aspects, and place an order. It is the link between the Demat and the bank account. When you place a buy order on the trading account, the units you want to purchase, get credited to the Demat account upon allotment of the shares. Along with the amount for which you have purchased the securities, certain statutory and transaction charges get debited from your bank account linked to the trading and Demat account. So, a brokerage/ trading account has a pivotal role in your trading and investment journey.
Top Features of a Brokerage Account
As mentioned above, brokerage accounts are crucial for trading and also indispensable. If you want to open the best brokerage account, you need to look at the features. Some of the top features that the best trading account should have mentioned below –
- Different brokerage plans: The first feature of the best trading account would be brokerage plans for different types of traders and investors. This helps the traders and investors to choose a plan according to their needs instead of all availing of a single plan.
- One-point access: Trading has become a side hustle for most people these days. Thus, trading accounts and platforms must offer single-point access to all the segments of trading so that the trader or the investor does not have to switch between applications or trading accounts to trade or invest in different segments or asset classes. This means your trading or brokerage account must offer all kinds of assets from all the exchanges, be it NSE, MCX, BSE, or others.
- Portfolio reporting: A trading account is where all the data and information related to the trades, pending orders, canceled orders, order history, open position, margin, profit, and other details are stored. So, your trading account must have easy access to all this information so that you can evaluate and monitor your portfolio whenever required.
- Transparency: The best brokerage account is the one that provides all information related to all of its charges, whether it is brokerage charges, additional charges, statutory or transaction charges. There should be no hidden charges as it can affect the trader’s profit adversely, and may have a huge impact on his trading strategies.
- Research and advisory services: The brokerage account you open must have research and advisory services associated with it. You need to check with the broker with whom you open the account so that you get trading tips, suggestions, and analytical reports to help you better your investments and trading strategies and earn higher returns.
- Round-the-clock access: With the advent of online trading, you can access your brokerage accounts all the time. Though you can trade as per the market trading hours only, you can check your portfolio, margin, trading details, and history all the time from your brokerage account.
- Complete control: A good brokerage account provides control to the account holder. You can choose the amount you want to have as margin, the assets you want to trade, or the type of order you want to place.
How to Open the Brokerage Account?
The process of opening the trading account is simple –
- First, you need to select the best brokerage account that suits your needs.
- Go to the broker’s website and click on the ‘ open account’ tab
- Fill out the form and enter all the details required
- Upload the documents – PAN, AADHAAR, bank statement, income proof, and others
- Wait for the approval after verification, and you are done.
With the right account, you can not only enhance your trading experience but also optimize the returns with different brokerage plans, offers, and discounts.