Earlier in the 90s, trading of shares and securities was done physically, wherein the stock brokers were responsible for the trading process and the investors had to purchase or sell their shares and securities through the physical medium, i.e., over-the-counter method. However, the stock market turned online in the early 2000s, the over-the-counter system transformed into an electronic medium where the investor got the liberty to trade anywhere only with the click of a button or with just a call. And for this facility, an investor needs a Trading Account.

Without a Trading Account, no online transaction regarding trade of shares and securities can be done. Since everything has turned online, most of the investors have also turned online for their trading process, moreover online trading is far more convenient, simple and time saving when compared to over-the-counter method. All of this is possible only with the help of a Trading Account.

In simple words, one can trade online only with the help of a Trading Account. A Trading Account, thus, acts as a medium, an interface with the help of which an investor can purchase or sell shares online. In fact, the term 'Trading' means buying and selling of shares, stocks and securities. And 'Online Trading' refers to the Trading which is done online, through an electronic medium. So, a Trading Account is the most important tool required in the trade of shares and securities online. In other words, the medium required for online trading of shares and securities is a Trading Account.

One needs to link his bank account to the Trading Account, this step is of utmost importance as the liquid cash from the bank account helps in the purchase of shares and securities. One needs money to buy shares and securities, this liquid cash requirement is met with the help of the bank account. Even the sale of shares and securities is done with the help of a bank account which helps in paying out the relevant charges and fees required for the sale.

Another important step is the linking of the Trading Account with the Demat Account. In Trading, one purchases or sells shares and securities, the purchased shares and securities need to be stored somewhere, the Demat Account fulfils this purpose. Thus, all the purchased shares and securities are safely stored in a Demat Account. The shared and securities, thus stored in the Demat Account, can be used for future trading as well.

An investor has the freedom to have multiple Trading Accounts depending upon his requirements, investment patterns and trading strategies. In short, a Trading Account is the medium required for the purchase and sale of shares and securities online.