Much like a Demat account, a trading account in India is essential to sell or purchase shares online on the stock market. Earlier on, the open outcry system was how the stock market functioned. Traders had to be physically present, and use verbal communication and hand-signals, likened to bidding for a share, to convey their trading decisions. Once the digital age came around, this system was replaced with the current trading accounts.
Today, traders and investors simply create an online trading account. Investors are usually required to enlist the help of a professional stockbroker to carry out their buying and selling decisions for them. While there are exceptions, brokerage firms rarely offer free trading accounts as there are maintenance and opening charges.
Due to easy accessibility via the internet, many people have jumped onto the stock market bandwagon. Around 22.5 million people with a trading account in India were partaking in the stock market in 2016. To manage this global influx of new traders, each trader is allotted a unique trading ID, which helps to individually identify traders and their transactions.
Stock markets are open for certain hours during the day during which the market can be seen and trades can be carried out. These are known as trading hours. There are various strategies to employ when trading. These include buying and selling a share on the same day (intraday trading) or holding onto a share until it starts to trend and then immediately selling it at a profitable margin.
Similar to other full-service brokerage firms, IIFL does not offer free trading accounts. However, it charges nominal fees for opening and maintaining a trading account. Here are the general charges to run a trading account with IIFL.
|Trading Account Opening Charges IIFL|
|Account Processing Charges||₹0|
|Trading Account Opening Charges [One Time]||₹295|
|Trading AMC [Yearly]||₹0 (for the 1st year)|
IIFL offers the Zero Brokerage Plan. Here’s how this plan works.
|Plan name||Zero Brokerage Plan|
|Equity Delivery %||₹ 0|
|Equity Intraday/ Futures (per lot)||₹ 20 or 0.05% whichever is lower|
|Nifty Options (per lot)||₹ 20|
|Stock/ Bank Nifty Options (per lot)||₹ 20|
|Commodity, Currency trading||₹ 20 or 0.05% whichever is lower|
|Currency Options (Per lot)||₹ 20|
|Currency Futures (Per lot)||₹ 20 or 0.05% whichever is lower|
|Commodity Options (Per lot)|
|Crude Oil||₹ 20|
|Gold Mini||₹ 20|
|Access to services|
|Market Guru seminars||No|
|Trader Terminal EXE||No|
|Analyst/ Investment advisor meetings||No|
Without access to a quality trading platform, your trades can get tedious and difficult to manage, ultimately resulting in losses. On the other hand, using a good trading platform can improve your trading skills. India Infoline (IIFL) offers its users a host of advanced and innovative trading platforms that perform with state-of-the-art technology. When you open an online trading account on IIFL, you get access to the following cutting edge trading tools and platforms.
Operating a trading account in India offers some special features and benefits to users. They are:
Yes, you can trade in the derivatives market with an IIFL trading account.
IIFL is a full-service broker and provides high-quality research and other financial data to investors. Discount brokers usually just provide buying and selling services.
With both, an IIFL demat and trading account, you can invest in mutual funds along with stocks, currencies and commodities. IIFL has also developed a dedicated platform IIFL MF App for mutual fund investments.
Yes, you can invest in IPOs and FPOs through an IIFL demat-cum-trading account.