What is zero brokerage trading?
This might seem like common knowledge, but it is important to note that you cannot trade in the stock markets without a trading account. It goes back to the basic rule of stock exchanges—in order to be a trader, stock brokers enter the picture. Stockbroking firms like Upstox offer trading account services to their clients. Since stockbrokers are already registered members of the stock exchanges (Upstox is registered with BSE, NSE, and MCX).
Intermediary Account
An account meant for trading can be considered an intermediary account connecting your bank account and demat account. To purchase shares, you have to transfer funds from your bank account to your trading account. Once you purchase your shares, they are kept in your demat account until you are ready to sell them. When you are ready to sell those shares, the shares are shifted from your Demat Account back into your Trading account. Thus, this account of yours can hold both cash and securities.
Different financial instruments
A trading account opens up the opportunity to invest in various kinds of instruments. You can purchase common stocks, trade in the derivatives market such as on Futures and Options, etc. You can also trade on Equities, Commodities, Currencies, and F&O with the help of an account exclusively meant for trading, with Upstox.