Opening a trading account is one of the first steps that an individual has to take to enter into the world of the stock market. However, in an anticipation to earn quick money, most of the people invest in the shares, but exit from the market very soon, if they suffer losses and in the process, their trading account remains inactive for a long period of time. After some time, if they again show interest in making an investment in the stock market, then they have to activate their trading account after paying certain penalties to again start the process of buying or selling the shares hassle free.
Creating a good wealth and attaining financial goals are the two most prominent reasons for an individual investing in the stock market. A person, whether experienced or beginner can make profits if he regularly follows the stock market trends. It does not matter how knowledgeable you are about the market or have the potential to grow your money really fast, these things are of no good if you do not have a trading account.
It is an account through which you can buy or sell the shares at a very short period of time. It helps to gain the profits and ensure that you have a hassle-free experience trading in the stock market. However, it must be noted that all your efforts can be in vain if your trading account is not active. If such is a case, then you can experience some consequences in the form of paying penalties or fees, which are as follows:
Annual Maintenance Fees
Most of the companies charge the annual maintenance fees for the purpose of maintaining the trading account. Even if your account is not active, then also you will be required to pay the charges. Hence, it makes a great sense to keep the account active in order to avoid the charges.
Paying Reactivation Fees
In case the account is inactive, then you will not be able to trade in the stock market. If you want to make the account active again, then it is a very time-consuming process as you will be required to provide certain documents such as the Aadhaar number, pan card number and other important documents. Moreover, you will also pay an account reactivation fee.
Reduce the Losses
Most of the people have the habit of keeping the shares in their account for the long period of time to get good profits. There is nothing wrong with this strategy. However, if you ask any financial advisor company, then they will advise keeping a tab on the share price and if they are on the higher side, then you can sell them and make profits. But, you can only do this if you have an active trading account.
Therefore, the stock market is a place, where you are required to take the fast decision considering its volatility. Hence, it is important that you must have a working trading account and do not waste the golden opportunity to buy and sell the stocks and make profits.