India has been moving towards a cashless economy. The government is actively pushing digital forms of transactions in the country. Digital modes of transactions are faster, secure and more cost-efficient. If one traces the origin of the digital revolution in the financial sector of the country, the search may end at the capital markets. The stock markets had migrated from physical to electronic mode of trading in 1996. The introduction of the Depositories Act 1996, led to the dematerialisation of shares.
Before the conversion of physical certificates into an electronic form, the stock markets operated on an open outcry system. Traders communicated verbally and through gestures to buy and sell shares. With the advent of electronic trading, investors do not have to be present at the stock exchanges and a simple online command is enough to execute a trade. However, certain tools are a prerequisite for electronic trading. You need to have a demat account, trading account and bank account to access the capital markets.
All the three accounts are linked and work in tandem with each other. The bank account is used to store cash which is used to trade in securities. The demat account is hosted by depositories and is used to store the different kinds of securities bought by the investor. But when you have to sell your holdings or buy new securities, you will have to use a trading account. The trading account is essentially an interface between the demat account and the investor. It is not possible to buy or sell a unit of security without a trading account. The trading account has replaced the open outcry system prevalent in earlier times. Now, you just have to place the order through the trading account and the request is forwarded to the stock exchanges. Upon the completion of the transaction, the securities are deposited in the demat account and the required amount is deducted from the bank account.
A trading account is not limited to stocks. There are trading accounts for currencies, commodities, bonds, gold and exchange-traded funds. There are several benefits of an online trading account. The biggest benefit is that you can open trading accounts online and do not need to visit a bank or the office of the broker. Trading accounts provide one-point access unlike physical trading.
Through a single trading account, you can access stock exchanges like BSE and the National Stock Exchange and commodity exchanges like Multi-Commodity Exchange and National Commodity and Derivatives Exchange. Open trading accounts online to get the flexibility to trade through multiple mediums. With a trading account you can trade through mobile, desktop or through a call.
Opening a trading account online opens up a host of investing possibilities. You must be wondering how to open a trading account. You can open a trading account in a few simple steps.
IIFL Securities is one of the oldest and the most credible names in the market. Opening a trading account with IIFL Securities can provide you a host of benefits.
IIFL has developed various trading platforms to suit the needs of different types of investors. Some investors need different types of charts and financial data, while some investors need just research reports. Depending on the level of investor’s sophistication, IIFL offers five different next generation platforms.
Along with the IIFL Markets, IIFL MF and TT Iris, IIFL has also developed the TT Web and the TTExe platforms.
IIFL Securities has three equity brokerage plans catering to different types of investors.
With a trading account from IIFL Securities, you can invest in the commodities and currency markets
Yes, you can trade in the derivatives market with an IIFL trading account.
IIFL is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers just provide buying and selling services.
With an IIFL demat and trading account, you can invest in mutual funds along with stocks, currencies and commodities. IIFL has developed a dedicated platform IIFL MF App for mutual fund investments.
If you are trading in the cash delivery system, you will be charged a minimum of Rs 25 per scrip under the variable brokerage and flat brokerage plans.
With IIFL, you do not have to worry about opening a separate demat account. IIFL offers demat-cum-trading account which eliminates the need to search for a demat account provider.
Yes, you can invest in IPOs and FPOs through an IIFL demat-cum-trading account.
With IIFL, you can rest assured of getting access to high-quality research reports. A team of professional analysts prepares the reports which lead to rewarding stock recommendations.