Traders used to express their orders orally or by gestures before the introduction of dematerialized shares. Traders used to be physically present at stock exchanges, referred to as the "open outcry" scheme. When the dematerialized shares arrive, what you have to do is put an order into a trading account, and the brokerage will electronically place the order on the investor's behalf. In India, there are various types of trading accounts.

Equity trading account: You will exchange stocks, futures, and options for an equity trading account. To take stock delivery or subscribe to an initial public offering, you'll need more than a share trading account. You'll need a demat account to store shares if you decide to take delivery. However, if you only trade futures and options, a brokerage account is appropriate because futures and options do not need a delivery.

Commodity trading account: Commodity trading is an essential aspect of the overall economy, so you'll need a dedicated trading account for it. Even though commodity trading is as straightforward as stock trading, independent trading accounts remain a relic of a bygone period. The regulatory bodies for commodities and equities were formerly independent, but the commodity exchange came under SEBI supervision a few years ago. Although the regulator has not changed, the practice of offering separate trading accounts has continued.

Online and offline trading accounts: Don't be misled by the name; an offline trading account does not indicate that the dealer is physically present at the exchange or broker's office. Online trading with a desktop or smartphone application is not available for offline trading accounts. In the case of offline trading accounts, one must contact a broker and place orders. As the name implies, online trading accounts allow you to trade with an application that uses the internet to send information to the brokerage.

2-in-1 account and 3-in-1 account: To exchange stocks, you'll need three different types of accounts: a brokerage account, a bank account, and a demat account. You must move funds from your bank account to your trading account. Then, this money will use to purchase shares in the trading account in the demat account. Some brokerages offer a 2-in-1 account that combines a trading and a demat account, making buying and selling and transferring shares to the demat account a breeze. The 3-in-1 account goes a bit further by integrating the demat, investing, and bank accounts into one easy bundle. A 3-in-1 account allows for smooth money and stock transactions. Banks with brokerage operations commonly offer 3-in-1 accounts.

Discount and full-service trading accounts: In recent years, discount trading accounts have become increasingly common. They have virtual trading platforms with no value-added features. On the other hand, full-service trading accounts provide investment forecasts, stock recommendations, and several different functions in addition to trading services.

Conclusion

Participating in the financial exchanges nearly invariably necessitates a brokerage account since repeated glitches could result in substantial losses for the trader, a reliable brokerage chosen for the trading account.