Open Trading Account Online
What is a Trading Account?
Trading account is a special account to conduct securities transactions online. It is a prerequisite for trading and is used to buy or sell securities in the stock market. Trading account is linked to a bank account for funds to purchase securities.
A trading account contains a list of all the securities held by a trader. The traders need to be registered with the stock exchange to execute trades. This registration is done by opening a trading account with brokers or financial institutions.
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Why Open a Trading Account Online?
Opening a trading account is a prerequisite to start trading. A trader cannot perform online transactions involving buying and selling of securities without opening a trading account.
Along with the basic necessity of opening a trading account, it also functions as the online platform with numerous other supporting features. A trading account also includes features like market watch, stock screeners, portfolio trackers, charts, and other technical indicators.
Thus, a trading account serves as a single integrated platform to perform all functions related to trading, including conducting research, placing orders, and executing orders.
How to Open Trading Account Online
The most significant step while opening a trading account is to select the stockbroker to open the account with. The brokerage firm needs to be efficient, and the brokerage rates need to be optimal. Traders must compare the costs and benefits, along with the services offered, before choosing the broker.
After the trader has selected the broker with which to open the account, he must fill the account opening forms online and submit the required documents to prove their identity. The brokerage firm will verify the application and documents.
After positive verification, the trader needs to fund the account with a customary down payment. Once the account is active and has funds, the trading account is ready to be used for buying and selling securities!
Types of Trading Accounts
- Broker Trading Account
The most common type of trading account is the broker trading account. These accounts are opened with big brokerage firms and deal in stocks of large-cap companies. The risks associated with trading these big stocks is sometimes lower and rewards may turn out to be high; however, such trading accounts turn out to be quite expensive. The brokerage fees associated with mid-large cap stocks broker trading accounts are high.
- Penny Stocks Trading Account
Some stockbrokers support penny stocks trading accounts as well. Penny stocks are stocks of small companies and trade at under $1. These companies, usually, have poor financial performance and are highly risk-prone. Thus, penny stocks trading accounts are cheaper, but they are risky and poor in quality.
- Demo Accounts, Virtual Money Accounts, and CFD Accounts
Another type of trading accounts is the demo accounts. These accounts are a fantastic way to gain experience by trading without the use of real money. They are used for practice and involve virtual money in the live market environment. Traders can start with a virtual balance and trade securities of their own choice to gain practical trading experience.
Variation of these accounts is in the form of Contract for Difference (CFD) accounts. Traders need to deposit only a small percentage of the total value of the trade and can trade on margin. CFD accounts do not require a minimum balance for opening the account, with tight spreads and low commissions.
INTRO FUNDED ACCOUNT
Tradenet Education Trading Packages
Tradenet offers its clients both demo accounts and the eligibility to apply to a funded trading account.
The demo account offered by Tradenet makes the traders familiar with all the trading features and increases their proficiency in using the real trading platform. Traders can test all the functions of the trading platform in a demo environment and then implement the learnings in the live market.
If a trader can win the trading challenge on the demo account, he becomes eligible to apply for a funded account for free. The funded account will have money and access to live markets, risk-free and no costs! Traders will receive 70% of the profits earned by them. Watch this video for more details.
Under the Funded Account Programs of Tradenet, traders need to pay only for their education. By doing so, they become eligible, under certain circumstances, to apply for a funded account of up to $240,000. Not everyone is qualified, but they can apply. With the help of the funded trading accounts, traders can learn to be consistently profitable, and not worry about losing their own capital.
As a bottom line, trading accounts are a must to start trading on the stock exchanges. They vary in features, brokerage fees, and other aspects from broker to broker. The trading accounts offered by Tradenet, both demo and funded, to which some students can be eligible to apply, have exceptional features including self-study courses, access to live trading chat rooms, and supportive mentorship. Do check the benefits in this YouTube video.