What is a 2-in-1 Trading Account?

If you are looking for a strategy that can help you increase your Margin of Safety and eliminate the risk of losing money, the 2-in-1 Trading Account should be your option. This account offers a variety of features that make it an excellent option for novice and experienced traders alike. Let's take a look at what differentiates this trading account from others.

What is a 2-in-1 Trading Account?

A 2-in-1 account is an investment account for the stock Market. It is a combination of a trading account with a Demat account. Securities, including shares, Bonds, Debentures, and mutual fund units, are stored electronically in the Demat account. The trading account is required to purchase and sell shares on the Indian stock market. To execute the online share buying or selling transaction, the Demat, Bank, and trading accounts are linked. A majority of stockbrokers offer these accounts. To make it simpler for potential investors to enter the world of stock trading, the 2-in-1 account was launched, which minimises the time and paperwork needed to open two accounts.

Features of 2-in-1 Trading Account

Here are salient features of this account that you must know before opening one:

• It is a combination of a Demat and a Trading account
• Through your 2-in-1 account, you can hold and trade a variety of investments, including stocks, derivatives, Mutual Funds, exchange-traded funds, bonds, and Non-Convertible Debentures (NCDs)
• It is built using the latest techniques and continually updated with new features
• Two types of brokers are available that provide 2-in-1 accounts: full-service brokers and discount stock brokers
• It is ideal for occasional and frequent dealers
• You can invest whenever you want through the internet, a phone, a mobile app, and a network of branches

Benefits of a 2-in-1 Trading Account

Listed below are the benefits of a 2-in1 trading account:

• Online fixed deposits and mutual funds are available for investment
• SMS notifications provide crucial trading advice, stock alerts, and the most recent market news
• Data encryption provides a secure trading environment for its traders
• Investors get a wide Range of bank account and brokerage plans to choose from
• Free access to in-depth analysis of Industry sectors and markets
• It helps to access contract notes, a Portfolio tracker, a Demat ledger, fund ledgers, Capital Gain or loss information, and more

How to use a 2-in-1 trading account?

To make you understand the working of a 2-in-1 trading account, here are some steps for your better understanding:

• Open a trading account with any of the well-known brokers or banks
• You need to link any of your savings accounts to your 2-in-1 trading account
• Next step, transfer funds securely from your Savings Account to a 2-in-1 trading account via a listed payment gateway
• Now, with your 2-in-1 account, you can trade in stocks, derivatives, currencies, futures, options, and more
• Once the order is executed. The shares will be deposited into your 2-in-1 account in T+2, where "T" denotes the trading day. It means shares will be deposited within two days from the day of order execution

Top Companies or Banks Offering 2-in-1 Trading Accounts

Here is the list of top brokers Offering the service:

• Zerodha
• Upstox
• 5paisa
• Indiabulls
• SAMCO
• Sharekhan
• One Angel
• Motilal Oswal
• Karvy
• IIFL

Below-mentioned are the top-most banks providing this 2-in-1 trading account:

• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Bahrain and Kuwait
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• City Union Bank
• Corporation Bank
• DCB Bank
• Deutsche Bank
• Dhanlaxmi Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• Jammu and Kashmir Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Oriental Bank of Commerce
• Punjab National Bank
• South Indian Bank
• Standard Chartered Bank
• State Bank of Bikaner and Jaipur
• State Bank of India
• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
• Syndicate Bank
• Tamilnad Mercantile Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• Yes Bank

Conclusion

Choosing the right broker is the most crucial part of starting your investment journey. If you are an investor who makes deliberate judgments, having 2-in-1 trading could be a beneficial strategic move. However, to make an informed decision, make sure you evaluate the benefits and drawbacks of a Demat account thoroughly.

Frequently Asked Questions (FAQs)

1. Where do the unused funds stay in the 2-in-1 account?

A: The unused funds are held in the trading account of investors.

2. Can I transfer money between my savings account and my 2-in-1 equity trading account?

A: Yes, you can transfer money between your bank account and your equity trading account.

3. How much start-up capital or minimum margin is needed to begin trading?

A: The sum of money you would like to invest first is known as margin or start-up Capital. It depends on the broker or bank you opened the account with.

4. What is the estimated time for activating a 2-in-1 stock trading account?

A: The broker or bank providing the service will determine this estimated time. It typically gets opened within 7 working days once you have completed the application.

5. Will I have to fill out two application forms for a 2-in-1 trading account?

A: No, you can open both Demat and trading accounts with one single application form.