In this age of digital technology, online trade is the new trend. The investment approach can be completely transformed since trades in stocks, commodities, and all other financial instruments are carried out from within the comfort of one’s home. To be able to trade, however, you must open a Demat account, which is important in holding your securities in electronic format.

Demat account

A Demat Account, short for dematerialized account, is a virtual account that can be used to hold and trade securities like stocks, bonds, and equity mutual funds. It differs from conventional paper-based records by electronically holding all securities in a Demat Account so as to enable easy and safe trading. Whenever a person buys or sells shares or any of the above, it is directly done to or from his/her Online Demat Account, allowing for faster transactions and secure investment management through digital platforms.

Online Trading Account Opening

Opening a trading account online is pretty simple. Here are the basic steps in the procedure:

Pick a Broker: Choose a reliable online broker and/or trading platform. Look out for a competitive price, taking into consideration its strong customer support and user-friendly interface.

Complete the KYC: To start, you will need identification and address proof documents to complete the Know Your Customer (KYC). Most of the time, this process can be done online by sending the scanned copies of documents such as your Aadhaar card, PAN card, and bank account details.

Submit the Application: Now that KYC is completed, you will fill out the online application for the trading and Demat account. Some platforms also allow you to do this process through their mobile apps, which facilitates further convenience.

Verification and Account Activation: After submitting your application and documents, the platform will start verifying the details you have provided. After successful verification and in a short time, the account will then be activated, giving you numbers for both your Demat and trading accounts.

Create Login Credentials: Login credentials have to be created to allow access to one’s trading platform. This allows placing trades, watching the performance of one’s portfolio, and tracking the movements in one’s account.

After this is done, you can start trading on the markets.

How to Load Money into Your Trading Account Instantly

Establish your trading and Demat accounts; now you wish to fund your account because you want to trade. Funding has been created instantaneously into your trading account since it is important for seamless trading. Here’s how you can load instant cash into your trading account:

Direct bank transfer (NEFT/RTGS/IMPS): The majority of trading platforms have this option of linking your bank account to your trading account so that you can easily fund your trading account by employing the services of NEFT, RTGS, or IMPS. Of these, IMPS is the fastest method to process money transfers instantly.

IMPS allows you to transfer funds 24 hours, and the money gets instantly credited into your trading account. Most brokers will give you their IMPS details, like account number and IFSC code, which you need to add as a beneficiary in your bank account.

UPI (Unified Payments Interface): It is also one of the widely used methods to transfer funds instantly. UPI allows transfers directly to your trading account from your smartphone. Many trading platforms allow the funding of UPI payments so that money is instantly transferred after furnishing your bank credentials.

Simply scan the QR code or use the UPI ID provided by your trading platform to complete the transaction. The money is transferred instantly, and your account is updated in real time.

E-wallets and Payment Gateways: Some brokers allow you to fund your trading account using e-wallets such as Paytm, Google Pay, and other payment gateways. Such services are based on your mobile device and allow much quicker money transfers. Your trading account balance gets updated in a matter of seconds after a successful transaction.

Cheque or Demand Draft: Not all brokers accept cash through this method, and some may still accept payment through cheque or demand draft (DD). Payments through this method are not as quick as online transfers, generally taking several days before the payment actually reflects in your trading account. This is, however, still a viable option for offline payment lovers.

Third-party payment services: Now, a lot of brokers provide the facility of instant bank transfer through third-party services, either through net banking or using mobile applications like PayPal. These methods give you another option to move funds to your trading account. They may attract extra charges or limits, depending upon your broker’s policies.

Linking Your Trading Account with Bank for Direct Transfer: It has been noted that a few of the platforms allow direct funding with such automatic debit or standing instructions. So you will not need to transfer money every time to fund your trading account using this method. The service automatically deducts the required amount from your bank account at chosen intervals.

Conclusion

Open an online trading account, learn how to transfer money instantly to your trading account, and become a more active trader in the marketplace.