Trading Account Types – A Beginners Guide

Investing in the stock market has been a popular way for traders to make money in recent times. These traders are becoming increasingly interested in investing in the stock market via online apps. 

An online trading account is similar to a bank account in that it is where you hold your financial assets such as bonds and stocks. It is used to place buy/sell orders on the stock market.

Investors can now open different types of online trading accounts with their preferred brokers. This article serves as a comprehensive beginners’ guide for novice traders and as an explainer for various types of trading accounts.

Types of Trading Account

The many categories in which various diverse sorts of trading accounts are available for trading are as follows –


  • Margin Trading Accounts

A Margin Account enables clients to borrow funds from their broker (as a margin) to trade. Because they may now purchase additional securities, they have an advantage over simply individual funding.

  • Cash Trading Accounts

The client owns all of the funds and securities in a cash account. They are not permitted to borrow funds from their brokers to complete transactions. A Cash Account requires the client to pay for any stocks purchased.

  • Commodity Trading Accounts

A commodities online trading account is an equity account that permits the buying and sale of such primary economic products as agricultural produce, metals, silver, oil, and so on.

  • Equity and Derivatives Trading Accounts

A derivative is a sort of contract in which the value is determined by another agreed-upon monitory security or property.

  • Options Trading Accounts

An online trading account for trading options is a contract that allows the equity seller/purchaser to trade a security at a specific rate and time.

  • Share Trading Account

This account cannot be used for anything other than trading in stocks. A Trading Account for beginners for Share Trading facilitates the buying and sale of shares.


  • Offline Mode Trading Accounts

If a trader wishes to trade offline, he should contact a respectable stockbroker. The offline method is more hectic and time-consuming.

  • Online Mode Trading Accounts

To open an Online Trading Account, the trader must make a selection, and all necessary transactions will be done via an online trading app.


To begin trading in the Indian stock markets, a trader will need three different sorts of accounts: A bank account, a depository account, and a trading account for beginners to trade-in.

  • 2-in-1 Trading Accounts

Only a few brokerages offer a trading account that combines the Demat and the Trading Account. When shares are purchased, the primary goal of a 2-in-1 trading account for beginners is to allow for a speedy and seamless transfer of shares from Trading to Demat Account.

  • 3-in-1 Trading Accounts

The 3-in-1 trading account for beginners goes beyond the 2-in-1 trading account. It allows you to connect banking services with your trading and Demat account.


Furthermore, Trading Accounts can be classed as follows –

  • Trading Account with Full Service

Using a full-service investment service to examine market trading decisions can save investors time. A full-service account, as opposed to a low-cost brokerage account, offers more trading choices.

  • An account with a Discount Brokerage

Brokers with discount brokerage accounts provide call and trade services but no offline investing. A discount broking account is a regular online trading account that does not include any additional services.


As a beginner, you should get an online investment account with a reputed brokerage company. After thoroughly comprehending the various types of trading and investing accounts available in India, the user should thoroughly analyse and pick up the best one, suiting their requirement for a safe and secure trading experience.

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