So you have just about opened your online trading account and are mighty pleased about it. That is hardly surprising because online trading is a unique experience where you as a trader have tremendous control over the trading process from end to end. But, your trading account is not just about execution. It interfaces with your online bank account and your demat account. You need to understand the advantages of online banking and the features of internet banking and how they interplay with your trading account. You need to also understand which is the best internet banking facility in India, its unique features and why it matters to your trading account? Here are 6 specific add-ons that your trading account will offer to you, if not you should insist on it..
1. Seamless integration of banking, trading and demat..
This is the most important feature of any internet trading account. When you buy shares, the bank account has to get debited. In case the banker and the broker are from the same group then you may be permitted to buy without margin in your trading account. But if your broker is not your banker then you need to first fund your trading account. Either ways, the procedure must be quick and seamless. On the T+2 day the shares must be credited to your demat account. You need to sign a power of attorney (POA) with your broker post which the movement in and out of your demat account will be seamless. Seamless interface is a very important facility.
2. Trusted research and analytics..
This is an add-on service that brokers are now offering on the online trading interface itself. You can screen stocks, you can shortlist your investment universe, you can evaluate the charts and you can also execute the transactions in one seamless chain. As a customer you must insist that not only must this research be trusted, reliable, objective and high class but all this must be specifically customised to you. L&T may be a great stock but may not suitable to you. You expect the broker to know that and also to tell you that.
3. Trading in multiple asset classes..
Your trading account must accommodate the client to almost purchase or sell any asset on the trading account itself. A single interface to trade equities, bonds, futures, options, ETFs and other asset classes is what is called for. That is something most of the brokers will offer. The only interface that is still separate is commodities due to statutory reasons but that too will go shortly since the regulation of the commodities market is already under the SEBI ambit. Not just trading in multiple asset classes, but the broker also provides a portfolio view that gives a consolidated view of all assets and liabilities in one place.
4. Mobile trading and low bandwidth facility..
These are 2 different things altogether but are related nevertheless. Mobile trading is a platform that is compatible with trading using your mobile phone or your tablet. Most brokers will offer you a trading app that can be downloaded. That is more secure and you can impute additional security features like TPIN to add another level of security. But the real challenge is how to trade when the bandwidth is low, or when mobile signals are weak or when you travelling to remote areas where internet bandwidth is not up to the mark. There is an alternative called the Low Bandwidth Site which is a lighter and simpler site with minimal features. You may not get all the analytics and frills in this low bandwidth site but it can serve the basic purpose of execution of trades so that you do not miss out on opportunities. This is normally required for mobile trading as mobile bandwidth continues to be quite erratic in India.
5. Call and Trade Facility..
This is an add-on feature which is an adjunct to the normal internet trading platform. If bandwidth is good you can use the normal trading site and if the bandwidth is bad then you can use the low bandwidth site. But what if there is no internet connection at all? Brokers offer what is called the “Call and Trade” Facility, wherein the customer can dial a toll free number from anywhere in India and get the trade executed by instructing the call centre executive after authenticating herself with a proper online identification. This is a great relief if the connectivity goes down at crucial trading moments.
6. Does the trading account also offer an online locker facility?
This is a very important add-on to any trading account. In this online locker, you can store the digital version of your key documents. For example, quarterly demat statements can be stored in the online locker. Similarly, if you are holding on to physical certificates of gold bonds or other debt paper then the digital copies of the same can be held in the digital locker. Basic identity proofs like your PAN Card, passport and Aadhar card can also be held in this digital locker so that for any future requirement of documentation you do not need to run around. While you may have another cloud account, it is useful to keep relevant documents readily available in this e-locker.
The advantages of internet banking and internet trading cannot be underestimated. The add-ons actually enrich your trading experience.