How to Transfer Funds into Your Trading Account
Investing in stock markets is one of the most lucrative ways to make quick money. You can sell/purchase the stocks of more than 7500 companies listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The first thing you need to do to invest in these stocks is open a trading account with a bank or a brokerage firm. You can open a trading account online or offline by submitting a few necessary documents such as your PAN card, Aadhar card, and bank statements.
The next thing you need to do before you can start investing in the stock market is transfer funds in a trading account. You can do this using an online payment gateway or through electronic transfer modes. You can also transfer funds in your trading account by issuing a cheque or Demand Draft (DD) in the name of the broker.
Let's learn about the three methods of trading account funds transfer in detail:
Method 1 - Using Online Payment Gateways
If you have opened your trading account online, this is the simplest method to transfer funds into it. All you need to do is click on the "Transfer Funds" option and select debit card, net banking, or United Payment Interface (UPI) as your payment method. You will be redirected to an online payment gateway where you can enter your debit card details or net banking / UPI credentials and confirm the payment.
Almost all major banks offer online payment gateways. These payment gateways are 100% secure as they keep all your confidential data safe. The biggest advantage of using this method is that funds get transferred to your trading account almost immediately.
Your broker may charge you ₹10 to ₹20 every time you add funds to your trading account using an online payment gateway. Also, remember that as per the Securities and Exchange Board of India (SEBI), you cannot use a credit card to transfer funds in your trading account. Hence, you can only use a debit card, net banking, or UPI method for this purpose.
Also Read: What is an Online Trading Account?
Method 2 – Using NEFT / RTGS / IMPS
National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) is another popular method for transferring funds in a trading account in India. Both NEFT and RTGS are the same, except that RTGS is applicable for funds transfer of above ₹2 lakhs.
To transfer funds in your trading account through NEFT, you need to first add your broker's bank account as a beneficiary and then transfer funds into it online using a One Time Password (OTP). You can also transfer the funds by submitting an NEFT cheque at your bank's branch.
It needs to be noted that funds transfer through NEFT usually takes 2 to 3 hours. However, if the transfer is done from the same bank in which your broker has an account, it would be instantaneous.
Method 3 – Using a cheque or DD
You can also transfer funds in your trading account by drawing a cheque or making a Demand Draft in favour of your broker. However, this method is only applicable for an offline trading account. If you have opened your trading account online, you can use any of the two methods mentioned above.
Also, remember that transferring funds through this method can take up to 2 to 3 days. You should also ensure that you have signed your cheque properly and accurately filled in all the details to avoid cheque bounce.
Be diligent while adding funds to your trading account. If you are not sure about something, contact the customer care of your brokerage firm or take the help of your investment advisor. While transferring funds online, also make sure that you have your smartphone ready with you with a good internet connection.
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Frequently Asked Questions
Checking the status of your trading account funds transfer is easy. You can log in to your account using your username and password, click on the "Fund Transfer" option, and go to the "Transfer Status" section to check your funds' transfer status.
In case your transaction fails, you can retry it using the same or different payment method. However, if the money has been deducted from your bank account, you can either wait for 2-3 days to get the refund or raise a complaint with the customer care of your brokerage firm.
As such, there is no upper limit on the maximum amount you can transfer in your trading account in a day. It depends on your brokerage firm and your method for transferring funds in your trading account.
For UPI transfers, the usual limit for funds transfer in a single day is ₹1 lakh, while for net banking and debit card transactions, it is ₹1 crore. The usual limit for IMPS transactions is ₹2 lakh per transaction, but you should confirm it with your bank.