Many of the traders prefer to take the stock trading as a regular business like other trading options available in the market. For any business, it is imperative to know the ins and outs before jumping in the trading,and the same golden rule applies to the stock trading as well. One can trade in any of the segment offered in the stock market subject to the knowledge of the concerned segment. The market has various options such as cash and derivatives. In both these options also there are other options from which one can either choose one or more than one options as per his interest and preference.
For trading in the market, one needs to have a demat as well as a trading account. The Demat account is made mandatory by the SEBI which is a market regulator. The trading is possible only in the trading account,and hence for a trader, it is required to get both of these accounts opened. One can check the top 10 stockbrokers who are known in the market for offering reliable services to the clients of any segment.
The demat is like a bank account,but the difference is the things that can be parked. In the demataccount, one can park only shares and other securities. The Demat account is compulsory for every trader and investor as the SEBI which regulates the stock market has made it mandatory. To open this account, one needs to contact a broker or broking house and furnish his personal documents. The documents must have a copy of identity proof and a copy of address proof. One also needs to provide a canceled cheque as well as a cheque of some amount as decided between the client and the broker to fund the account. One can check the top 10 stock brokers in the market and get this account opened with anyone of them. However, the NSDL and CDSL are only two organizations that can open the demat account. The client is free to choose any one of them as per his will.
There is online account as well as an offline account in the market. Both of these accounts have pros and cons which one must be taken into consideration. The online account is the most preferred one by those clients who love to have complete command on trading. However, it is important for them to have resources such as a computer or a smartphone with an active internet connection. Here the client must have knowledge of trading and passing various transactions as well as setting limits. The brokerage is also much low in this kind of accounts compared to the offline account. However, one has to consistently keep updated with the changes in the market and hence those who are busy during the market session cannot go for it.
The offline account is the traditional one where the trader needs to call and get the transaction done. However, here brokerage is little high but at the same time, it is an easy way for small traders.