The stock market is an area that deals with the securities exchange through electronic mediums. In this age of technology the buyer and seller do not need to meet personally but still, the trade can take place as the exchange of the same is possible through electronic exchanges. However for the purchase or sale of the shares, one needs to have a trading, and a demat account opened with any of the service providers. For those who want to go for the trading of shares as an intraday trader must have a valid account.
One can go for the trading account opening with any of the broker or company that is listed on the exchange and authorize to carry out such trading activities. Here one must note that there must be no dealing with any trading service provider if he has no license for this service. The client needs to provide a few of his personal documents that include an ID proof and an address proof; he also needs to provide a valid cheque of the minimum amount as a margin money and a cheque for the account opening. One must know the terms and agreements before signing the deal. The rates of brokerage and other terms such as margin money, and delivery of the shares must also be known before the account opening. To get the best trading account in the market, one must compare the trading account, charges and facilities of various service providers before selecting any of the service providers.
There are two options for the trader. He can go for an offline account or an online one. The offline account is one where the client can call the operator and know the rates of concerned shares. If he thinks fit, he can place an order or can set a limit to buy or sell the shares. If the rate of the concerned companies hit that limit, he can have order executed, and the bolt operator updates him about his purchase or sell as the case may be. He has to settle the account as per the cycle informed by the service provider. For each order, the client has to pay certain brokerage irrespective of the profit or loss he has made.
In the online account, the client is not provided with any support from the branch, and he needs to place the order on his own. He can use a computer or even an application on the smartphone which act just like the main software for purchase or sale of the shares. He needs to monitor the market as per his requirement. In case of any issue with the system, he may be provided support by the service provider’s team for the time being.
As there are many service providers in the market, the client needs to check the brokerage rate and other terms such as the settlement of accounts and credit limit before opening the account as some of the service providers may also offer some liberal terms.