Trading Account

How to Transfer Funds into your Trading account?

Before you can start trading, the first thing you need to do is transfer funds into your trading accounts. You have many options for transferring money to your account. There are two options for transferring money to your account: you can use a payment gateway or the NEFT/RTGS service. You can also pay your broker by margin cheque / DD. You will receive a payment in two ways when you purchase shares. One is that a debit is made to your trading account and the other is that a credit is given. Before you can buy shares, first transfer funds to your trading account. This is the beginning.

1. Transfer funds using a payment gateway

Payment gateways are a common way for brokers to transfer funds into the trade account. Payment gateways are available at large banks such as Citibank, HDFC Bank and Axis Bank. A payment gateway allows you to use any debit card, internet bank account or credit card to transfer funds into your trading accounts. Your fund transfer will be completed immediately. The credit will be reflected in your trading account and you can start trading immediately. Payout gateways: There are two important things to remember. First, every time you use payment gateway, your broker will charge a fee between Rs.10 to Rs.20. These fees can quickly add up if you frequently add funds to your account. Second, you cannot load funds to your trading account with a credit card or charge card. This can only be done with debit cards or via net banking.

Note:Collecting fees from brokers to allow fund transfer is an industry standard. Angel One does not charge customers any fund transfer fees. Trading with Angel One will give you an economic advantage.

2. How to add funds via NEFT / RTGS / IMPS

National Electronic Fund Transfer (NEFT) is the second most popular method for fund transfer. Typically, a NEFT transfer between HDFC and SBI takes around 2-3 hours. If the NEFT transfer is made from the same bank as your broker's account, the credit will be available immediately. First, you will need to add the broker's account as a beneficiary. Then, transfer funds using the OTP and password as the second level authentication. NEFT does not charge any fund transfer fees. NEFT allows you to transfer funds to your commodity or equity trading account. Either you can do your NEFT transfer online, or at your branch with a NEFT cheque. Both cases take the same time. The real time gross settlement (RTGS), which is identical to NEFT, is only applicable for fund transfers exceeding Rs.2 lakhs. What about IMPS. Remember that NEFT and RTGS cannot be performed outside of the normal banking hours (9.00 am to 6.00pm). The transfer will not be made if you make the NEFT before the close of NEFT timings. IMPS is the way out. IMPS transfers are instantaneous, and can be made outside of NEFT working hours and holidays. The difference between IMPS services and NEFT services from HDFC is how long it takes and the 24X7 availability of IMPS. However, IMPS can attract fund transfer fees and this will increase your trading costs.

3. Transfer by cheque/DD to broker

Transfer funds to your trading account can be done by writing a cheque for your broker. This is only possible if you have an offline trading account. You can only transfer funds to an online trading accounts via payment gateway or viaRTGS/NEFT. When transferring money via cheque/DD, there are some things you should keep in mind. The clearing credit must be received before the broker will issue credit to the broker for the cheque/DD amount. This process can take up to 2 days. Second, make sure your account has been funded and that your cheque is signed correctly. The broker will charge you a penalty fee if your cheque is rejected.

What document audit trails do you need to keep?

There are some basics you should remember when you transfer funds to your trading account. Keep a copy of the payment ID details when you transfer funds via payment gateway. The snapshots can be used to verify that credit has been added to your online account. To speed up the credit transfer to your trading account via NEFT/RTGS/IMPS, take a snapshot online and send it to your broker. Keep a copy of the cheque or DD you gave to your broker for your records. Your transfer details should be reconciled every week at the very least with your broking account ledger. You will be able to control all fund flows to and from the trading account.

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