Have you ever wanted to invest in stocks but didn’t know how? Does the world of speculation and trading excite you? Do you want to use your market knowledge to multiply your money? Look no further. This article will tell you where to begin.
Modern day banking has advanced tremendously when compared to traditional banking. Earlier it was a hassle to go trade physically, and hold certificates of the shares bought. With the emergence of electronic systems and the 3 in 1 account, those worries have disappeared, and online trading has amassed ground.
A 3 in 1 account offers you the benefits of 3 separate accounts. These accounts include a Savings Bank Account, a Demat Account, and a Trading Account. All 3 accounts can be opened at one go, using a single account opening form.
A 3 in 1 account is used for the purpose of Share Market Trading. You can also use this account to invest in Mutual Funds, Derivatives and IPOs (Initial Public Offerings).
A savings account is one of the most popular forms of deposits. It offers a nominal interest rate to customers. Most banks have a minimum balance requirement that needs to be maintained. There is usually a cap on the maximum number of transactions made through a savings account. This is a highly liquid form of asset.
A demat or dematerialised account is an account which allows customers to hold shares and securities in an electronic format. It facilitates easy trade for users, as shares which are bought are held in the Demat Account. It also holds additional investments made by a customer in the form of mutual funds, government securities, bonds, among others.
A trading account is used to buy and sell equity shares on the stock market. Earlier, the stock exchange functioned on the open outcry system. But after the adoption of the electronic system, Online Trading gained popularity. Each trading account has a unique trading ID. A trading account acts as a link between a user’s demat account and bank account.
Buying: When an account holder buys shares through the trading account, the money automatically gets debited from their bank account, and shares are then subsequently credited to their demat account.
Selling: When an account holder sells shares through the trading account, the money automatically gets credited to their bank account, and the shares are then subsequently debited from their demat account.
The savings account can be used normally to make transactions, when not trading.
You can open a 3-in-1 account at the bank or online. All 3 accounts can be opened at one go, using a single account opening form. You just need to produce the following documents:
Depending on the bank’s policy, you may be required to maintain a minimum balance in your savings account.
Factors to consider while opening a 3-in-1 account
Kotak Securities is a subsidiary of Kotak Mahindra Bank. They are corporate members with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). They are also a Depository Participant (DP) with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
Kotak Securities offers a 3-in-1 Account which allows the investor to open a Trading Account and Demat Account with Kotak Securities, and a Savings Account with Kotak Mahindra Bank.
Trade Platforms available through Kotak Securities:
ICICI Securities offers ICICIdirect, which is a retail trading and investment service. ICICI Securities is the largest retail stock broker firm in India. ICICIDirect.com is the flagship website of ICICI, which offers a wide range of investment products such as: Online Equity Trading, Derivatives Trading, Mutual Fund and IPO, Bonds, among several others.
ICICIDirect’s Trading Platforms:
HDFC Bank’s Equity Trading Company is called HDFC Securities (HDFCsec). HDFC Securities provides both trading on phone, as well as online trading. HDFC Securities’ Trading Account has a unique feature that integrates the HDFC Securities Trading Account with a customer’s existing Bank Savings Account and existing Demat Account.
HDFC Securities’ trading software includes a trading terminal, browser-based trading website, and mobile trading app.
Features of HDFC Securities:
SBICAP Securities Ltd (SSL) is a 100% subsidiary of SBI Capital Markets Ltd. SBICAP offers various services like Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant Services and E-Broking. This portal allows both Indian Residents and Non-Resident Indians (NRIs) to invest in Equity, Derivatives, Mutual Funds and IPOs via its online channel.
Features of SBICAP Securities Limited:
Axis Securities is a subsidiary company of Axis Bank Ltd. Axis Direct is the flagship brand of Axis Securities Ltd offering simplified investment solutions to retail customers. Axis Securities offers a single account to its customers to invest in Equities, Mutual Funds, SIPs, IPOs, Derivatives, Bonds, NCDs, ETFs, and Company Fixed Deposits.
Axis Direct’s Trading Platforms:
Axis Direct offers 3 types of Brokerage Plans:
In conclusion, we can say that the 3 in 1 account has, by all accords, revolutionized the banking sector, and completely changed how trading is done. It has facilitated seamless transactions, and quick execution of orders. With options like Kotak Securities, ICICIdirect, HDFC Securities, SBICAP Securities Limited (SSL), and Axis Direct, among countless others- customers today have a rich pool of options to choose from and learn how to invest money wisely.
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