A 3 in 1 trading account also called a 3 in 1 Demat account. It is an account where you can buy and sell shares, you can hold shares and you can allocate and receive money. Normally, a bank account allocates and receives money while a Demat account holds shares, and a trading account is responsible for buying and selling shares. There are several reasons why you should opt for a 3 in 1 trading account as opposed to the normal 3 separate accounts.
- Less paperwork
Opening 3 separate accounts will have significantly more paperwork and therefore, significantly more hassles as compared to the 3 in 1 trading account or the 3 in 1 Demat account. This is a great advantage and should not be overlooked because it can be overemphasized that a significant amount of paperwork has to be done with 3 separate accounts.
1. Quicker transfer of funds
This is because sometimes you will have to log into two different accounts on two different bank websites to complete the transaction. This is not the case with a 3 in 1 trading account. Therefore, please use a 3 in 1 trading account if you need to transfer funds quickly.
2. Safer transfer of funds
Using one account for the transfer of funds not only saves your time but improves your security as now there are fewer accounts to take care of and to make sure they are not hacked.
3. Lesser chances of the bank making a mistake
Even though you may say this is the banks problem, it is your loss if the funds are not transferred accurately. Therefore, you must make sure that you do make use of the 3 in 1 trading account. It is easier for the bank because your 3 in 1 trading account can be linked to your savings account.
4. Banks give advantages
Banks give several advantages to consumers who use 3 in 1 trading accounts including the fact that a diversified range of assets is available to invest in including stocks, mutual funds, bonds, debentures, and company fixed deposits. Another advantage banks give to consumers who use 3 in 1 trading accounts are that global research tools like stock comparisons are used.
These are just some of many advantages of a 3 in 1 trading account. It is crucial that you realize that you can do a lot with a 3 in 1 trading account which cannot be done with 3 separate accounts including advantages not listed in this article. Therefore, it is highly recommended to get a 3 in 1 trading account.