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Most of the time people have doubt on the subject. They might have two account and keen to know the legal possibilities on the same. This article providing the available best answer to this doubt.
Having two trading accounts with different brokerage firm is not illegal. Decision on opening multiple account is entirely to you. Nothing can prevent you on that. The only problem after opening multiple trading account, you have to pay the fixed annual maintenance charge to the broker. TO avoid this, get the benefit from the competitions in this field. Most of the brokerage firm allow its customers to open an account by paying only the opening charge and thereafter any charges applicable only when you buy and sell shares only. There will not be any annual maintenance charges. If you want multiple trading account, go and search this facility with available brokers in your area and open account with the best one.Opening multiple trading account is not only legal but also, a requirement too. A wise investor always should have two trading accounts in his name. He can keep one account live to purchase or sell shares time to time. Because of no annual charges, he can keep the second trading account as a backup to the first one. This will not only enable him to buy shares for a long term to that account but also, work as a safe place to transfer shares from another account if something bad happen to the brokerage company that lead to possible freeze of all customers account.In India, all the brokers should be registered with Stock Exchange and they are working under the regulations and rules of SEBI (Stock Exchange Bureau of India). SEBI has well defined rule for brokers to work and any violation of the same will lead to heavy penalties or termination of there broker license. If such happening to a firm, it will be informed to customer for some days back to transfer there preset shares with the accounts in that brokerage firm to an another account that has with another brokerage firm.If a person facing this issue and if he doesn’t have an another account to transfer his shares in the limited time, he will be in trouble. It required some more time to open a new account with another brokerage firm and in most case, this will not work out for him because of the time limit in front of him to transfer his shares to a new account will be limited. There is the requirements of keeping a backup trading account with another broker.Not only the above, if an investor have long term investment focus and once he bought shares in the correct price and need to hold that for long term by considering its profit possibility, he can transfer these stocks to the back up trading account. This will be safe there as a long term asset and he can directly sell them whenever he required in the future.
Hope this article is suitable to those who have doubt on opening multiple trading accounts. If you like the article, you can send valuable feedbacks to investinternals@gmail.com or can comment here itself.
