Can A Person Have Multiple Trading Accounts In India

A trading account helps you carry out trading activities in the stock market in India. With this account, you can buy and sell the shares of companies listed in the Indian stock market over the Internet. To open a trading account, you need to look out for a stockbroker, bank, or other financial institution in India. 

There is a similarity between a trading account and a bank account. A trading account primarily helps you with transactions in the financial markets. While a bank account usually helps you transact your money. It comes under the administration of a stockbroker. After you open a Demat account and a trading account, you need to link a bank account with these two accounts. 

Why Do You Need a Trading Account?

Here are some reasons behind having a trading account. 

• With a trading account, you can set your trading limits.
• You can execute as many trades as you want quickly for maximum profits.
• Many stockbrokers provide special services on placing orders even after the market hours.
• A trading account helps you to measure your position as per profitability.
• You can get a ratio reflection between costs of goods sold and gross profits.

Is it Possible to Have Multiple Trading Accounts in India?

Now you may be wondering whether you can have multiple trading accounts in India. You can open more than one trading account without any restriction to serve your different trading strategies. 

Things to Know Before You Open a Trading Account Online

Here are a few things that you need to know to decide should you have multiple trading accounts. 

• Opening multiple trading accounts in India is a legal process. However, certain conditions come with it. It is not allowable to have multiple trading accounts with the same Depository Participant (DP).
• Having multiple trading accounts in India is helpful for a person who carries out trades and investments in the stock market. With multiple trading accounts, you can do segregation of your investment portfolio and trading portfolio with ease.
• You can avail different services and other benefits from different brokers with your different trading accounts.
• It is not necessary to open multiple trading accounts along with multiple Demat accounts. It is recommendable to link one Demat account to multiple trading accounts.
• There is a need to monitor monetary balances and transactions through your multiple trading accounts in India.
• You can open trading accounts from two types of brokers: a full-service broker and a discount broker.

Full-service brokers provide features like research, advisory, trading tips, etc. They charge you a significant amount for their services. In comparison, discount brokers charge you low brokerage fees. 

Advantages of Having Multiple Trading Accounts

So, you got the answer to your question, “Can I have multiple trading accounts?” Here is all about the advantages of having multiple trading accounts.

• It is efficient to segregate your investment portfolio.
• You can access various benefits like comparatively low brokerage, better research reports, etc.
• You can trade in securities using your trading accounts safely and securely.
• Compared to the physical trading process, you can perform trading activities quickly, easily, and conveniently with your online trading accounts.
• There is a cut down on trading expenses owing to the Internet compared to physical trading.
• It is fast, simple, and convenient to set up your online trading accounts using your smart devices.

Frequently Asked Questions (FAQs)