How to close trading account ?

Trading in financial markets is a viable investment option for many Indians because of the ease and accessibility offered by trading accounts. There are many reasons people might decide to cancel a trading account, despite all the benefits. They must follow a specific procedure and pay attention to a few key factors in order to do so. Let's take a closer look at closing a trading account.

Reasons to close a trading account

Trading account opens up opportunities to increase your wealth and improve financial skills. Closing a trading account can be a difficult decision for traders. There are many factors that could lead traders to close trading accounts.

A trader might close his trading account to simplify his trading activities. As traders gain expertise, they tend to diversify their trading accounts. One might be for equity, one for derivatives and another that is solely for intraday trade. He might decide to concentrate on one or two of them and close others.

A trader may also want to close his trading account if he is not seeing much success with his strategies, despite all his efforts. He might want to close his trading account.
One way to solve this problem is to practice trading with demo accounts. Angel One, for instance, offers a trial trading account which allows traders to trade with virtual money and fine tune their strategies.

Traders might lose their time due to life changes.

Some traders may close their trading accounts due to dissatisfaction with the platform or service provided by their broker. Doing a lot of research before choosing a broker or DP can help to avoid this.
Angel One has more than 1,000,000 satisfied customers and has more experience than 30 years. They offer research, guidance, and complete support for daily trading. These factors can make the difference in finding the right broker or closing an account prematurely.

Closing a trading account

The first step to start your Indian trading business is opening a trading account. These are the steps you need to follow in order to open a trading accounts:

- First, notify the brokerage company/Depository Participant you opened your trading account with.

- Fill out the Account Closure Form. Please read carefully. This form can be found on the DP website or at any of their branches.

If more than one person holds the trading account, all holders must sign the form. In your Account Closure form, it is important to indicate the reason for closing the account.

- Once you have completed the Account Closure Form, you must submit it to your local DP branch.

Your trading account and Demat accounts deal in securities. Make sure to clear the board before you close your trading account. These are some important points to remember about the matter.

Closing your trading account - Things to Note

Ensure that you do not have shares or other securities in a demat account connected to your trading account. They could be sold or transferred to another demat. You can also have them rematerialized so that you can store them as physical certificates.

A negative cash balance should not be shown on your connected demat account. If this happens, you will be denied the request to close your trading account.

There are no fees for closing your trading and demat accounts.

Usually, once you have filled out all the required documents, your request is processed and your trading account will be closed in 3 to 7 days.

Conclusion

Trading accounts offer a wealth of trading opportunities in different financial markets. Sometimes, however, you may need to close your trading account due to unforeseen circumstances. You can close your trading account by following the above procedure.