What is Trading Account?
Your Gateway to Stock Market!

Trading Account Meaning

What is a Trade? Generally, it is a buy and sell transaction. So if you ask yourself what is Trading Account keeping the stock market in mind. You would probably get the answer.
Well, if you guessed that trading account helps you buy and sell shares in the stock market, you are absolutely right! But there’s more to it.
What is it? That’s exactly what you will find out today!


Trading Account Meaning

A Trading Account helps you buy and sell Shares, ETFs, and Other Financial Instruments listed on the stock market. When you open a trading account with a broker, you will be provided a trading software using which you can place buy and sell orders. Or you can also place orders via a call with the broker.

Types of Trading Account

Commodity Account: This account helps you to buy and sell financial instruments in the commodity market like Gold, Silver, Crude Oil, etc.

Equity and Currency Account: When you open a normal trading account you can transact in Equity and Currency financial instruments.

Single Margin Account:This is a combination of Equity, Currency, and Commodity Account that helps you buy and sell financial instruments conveniently in all the segments.Only a few brokers like Aliceblue offer a Single Margin Account.

Online Trading Meaning

Online trading is nothing but placing buy and sell orders through a trading platform. A broker can provide you trading platform either via a Mobile or Desktop App or a Website. With an online trading platform, you access various financial products like:

  • Stocks
  • Indices
  • Mutual Funds
  • Treasury Bills
  • Bonds
  • Equity Derivatives
  • Commodities Derivatives
  • Currencies Derivatives
  • Exchange-Traded Funds

You can also access amazing features like:

  • Live News.
  • Stock Scanners to find the best stock to invest in.
  • Different types of charts.
  • Tools to analyze the charts etc.

Usually, to trade or invest in the stock market, only having a trading account is not enough, you also need to have a Bank Account and Demat Account.
Why do you need a Demat and Bank Account? Let’s understand that with an example.

  • Imagine one fine day you decide to buy Reliance Shares.
  • To buy the shares you need money in the trading account. How do you add money into the trading account? You guessed it right, with a BANK ACCOUNT.
  • After the funds are added, you need to place an order via Trading Software.
  • Once the order is successfully placed, you will receive Electronic Share Certificates of Reliance in your DEMAT ACCOUNT after 2 days.

As simple as that!
You might be knowing how to open a Bank Account but what about a Trading and Demat Account? Read on to know more…
Note* Usually Trading and Demat Account are opened simultaneously..

How to open a Trading Account?

If your Mobile no is linked with Aadhar, you can open the Trading & Demat Account online.
Follow the simple process given below:

  • First, visit our website and click on Open an Account.
  • Fill in your Name, Email, Mobile Number, and State and click on Open an Account.
  • Upload account opening documents.
  • Provide an IPV (In-person verification) by showing your PAN towards the camera along with your face.
  • E-sign the documents by verifying your Aadhaar with Mobile Number.
  • Your account will be activated within 24 hours.

Documents required to open an account:

  • Identity Proof (PAN Card Mandatory).
  • Address Proof (Aadhar, Voter ID, Passport, etc)
  • Passport Size Photo.
  • Income Proof (Latest six month's bank statement, Latest ITR copy, Three month's salary slip)
  • Bank Proof (Cancelled Cheque, Passbook Copy or Bank Statement with visible Bank Account Number, MICR, and IFSC code)
  • Scanned copy of the signature (only in case of online account opening)

Why you should open an account with Aliceblue?

There are two types of brokers, a discount broker, and a full-service broker.
A discount broker provides you trading and investing services at the lowest possible cost and a full-service broker provides full-blown services like investing tips, hand-holding, trading reports, etc. but all these services come with a higher cost. Well, Aliceblue is an Exception! We provide the services of a full-service broker but at a cost of a discount broker. Meaning, we charge the lowest brokerage yet provide full-blown services like a full-service broker. Check out some of the unique services we offer:.

Unique Services

To make your trading experience smoother we offer a single account for Equity and Commodity Exchange and also provide Two Unique Products

  1. Trade School: It is a stock market education platform that helps you learn everything about stock markets from the beginner to advanced level via webinars, live sessions, courses, etc from the Top Traders & Investors in India.
  2. Trade Store:It is a marketplace that provides amazing apps that will ease your trading and investing experience in the stock market. Trade Store has over 15-20 products that can be accessed freely or at a special price if you are an Aliceblue client.

Here’s how Trade Store can help you in your trading & investment journey:

  • Direct Mutual Funds investment i.e. you can invest in mutual funds with Zero Commission
  • Invest in IPO with a single click via UPI
  • Separate Options Trading Platform with readymade strategies
  • Buy & Sell Signals Software with 70 - 90% accuracy
  • Stock Screeners and market sentiment analyzers for better decision making
  • Predefined Technical and Fundamental analysis strategies
  • Advisory, and more.

Check out this article to learn about Brokerage, Margins, and Trading Platform offered by Aliceblue..

Corporate Office: No. 153/2, 3rd Floor, M.R.B.Arcade, Bagalur Main Road, Dwaraka Nagar, Yelahanka, Bengaluru - 560 063, Karnataka.
Registered Office: Old No.56/2 ,New No.58, LIC Nagar, Vinayagar Kovil Street, Erode -8,Tamil Nadu– 638002.
Alice Blue Financial Services (P) Ltd : NSE EQ | NSE FO | NSE CDS-90112 SEBI REG : INZ000156038
Alice Blue Financial Services (P) Ltd : BSE EQ | BSE FO | BSE CD-6670 SEBI REG : INZ000156038
Alice Blue Financial Services (P) Ltd : CDSL DP ID 12085300 DP SEBI REG : IN-DP-364-2018
Alice Blue Financial Services (P) Ltd : MCX-56710 SEBI REG : INZ000156038

attention Attention Investors
Prevent unauthorized transactions in your account update your mobile number/ email Id with your Stock Broker. Receive information of your transactions directly from Exchange on your mobile / email id at the end of the day."

Procedure to file a complaint on SEBI SCORES : Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

For queries regarding account opening or activation, email to accountactivation@aliceblueindia.com and for fund updates, email to funds@aliceblueindia.com

Disclaimer : Prevent unauthorised transactions in your account. Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day. Issued in the interest of investors. All clients have to update their email id and mobile number with Member : Investor Grievance grievances@aliceblueindia.com
KYC is a one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. 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 the refund as the money remains in investor's account.