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How to Transfer Funds into your Trading Account?- ICICI Direct

12 Mins 02 Jan 2024 0 COMMENT
Transfer to trading account

Opening a trading account marks the beginning of an exciting journey of investing in various financial instruments like stocks, commodities, currencies etc. But before you can begin trading, you need to transfer money into the trading account to enable buying and selling.

Choosing the right fund transfer method tailored to your needs is important. Let's look at how to transfer money to a trading account smoothly and securely.

Transfer money to trading account using a payment gateway

Payment gateways offered by leading banks provide a convenient way to instantly transfer money to your trading account via net banking or debit cards. Here are some of the major benefits of using payment gateways.

  • Extremely convenient as the entire process can be done online through net banking without visiting a bank branch. Useful when you want to transfer funds urgently.
  • Money gets credited to your trading account instantly in real time enabling you to start trading immediately.
  • Highly secure process as it involves robust encryption and two-factor authentication via OTP, passwords, PIN, etc.
  • Available 24x7 allowing fund transfers at your convenience.

However, there are some limitations to be aware of:

  • Transaction charges of Rs. 10-25 are levied per transaction which can add up if you frequently transfer small amounts.
  • As per SEBI regulations, credit cards and international debit cards cannot be used for funding trading accounts. Only domestic debit cards and net banking are allowed.

Here are the detailed steps to transfer money via the payment gateway.

1. Log in to your net banking account of your bank which offers payment gateway services like SBI, ICICI, HDFC, Axis Bank, etc.

2. Go to Funds Transfer and select New Beneficiary. Fill in the trading account details - account number, broker name, and IFSC code. This links your trading account as a registered beneficiary.

3. Whenever you want to transfer money, log in to net banking and go to payment gateway/funds transfer. Select the registered trading account and enter the amount to transfer.

4. Carefully check all details before confirming the transfer to avoid errors.

5. The gateway will ask you for two-factor authentication. This is done via OTP sent to mobile, entering debit card PIN or password. This completes the transfer.

6. The money instantly gets credited to your trading account. The broker will send a confirmation message via SMS/email once it is done.

7. Save the payment gateway transaction receipt for your records. This can be used as transfer proof if required.

Using a payment gateway is the fastest and most convenient way to fund your trading account digitally in a secure manner. It is highly recommended for tech-savvy investors who use online banking.

How to transfer funds into your trading account using RTGS/NEFT/IMPS

RTGS, NEFT, and IMPS are facilities offered by all major banks in India to digitally transfer money from one bank account to another. They offer a secure way to fund your trading account as well. Here are some benefits of using them:

  • No extra transaction charges or gateway fees, making them more economical than payment gateways.
  • Can be used by bank account holders once trading account details are linked.
  • Secure process requiring two-factor authentication via OTP, debit card PIN etc.
  • Available on all working weekdays during bank working hours. IMPS is available 24x7.

However, there are some limitations:

  • NEFT transfers can take 2-3 hours to reflect in the trading account due to batch settlements.
  • RTGS is mainly meant for very high-value fund transfers above Rs. 2 lakh.

Here is the step-by-step process to use them:

1. Initiate the transfer through net banking or visit your nearest bank branch. For NEFT/RTGS, it can be done only on working weekdays and during bank working hours.

2. Add the trading account details as the beneficiary account by linking the account number, broker name, and IFSC code.

3. For IMPS, you can initiate transfer instantaneously, 24x7. For NEFT/RTGS, timings of the bank apply.

4. Enter the fund transfer amount and any applicable IMPS transfer charges.

5. Complete the transfer by authenticating via OTP, debit card PIN, or password.

6. For NEFT, funds get credited in the trading account within 2-3 hours while it's instant for IMPS.

7. Once done, save the acknowledgment slip/transfer receipt for your records.

8. If not credited within the expected time, contact the bank to investigate the delay.

By planning the timing appropriately, RTGS, NEFT, and IMPS offer flexible and economical options to transfer money into a trading account digitally.

Transfer of funds into your trading account using cheque/DD

For investors who are uncomfortable using online methods or don't have access to net banking, deposits via physical cheque or Demand Draft are an option. Here are some key aspects:

Benefits

  • Convenient option for those without access to net banking or facing tech challenges.
  • Cheque or DD can be issued for any transfer amount as per specific funding needs.

Drawbacks

  • Time-consuming process as manual clearance of physical cheques/DDs takes 2-3 working days.
  • Need to personally visit the bank branch and stand in queues for depositing cheque/DD.
  • Bounced or rejected cheques/DDs will lead to penal charges of around Rs. 500.

Process to use cheque/DD

1. Draw the cheque/DD in the name of the trading account. Fill in the correct trading account number.

2. To prevent fraud, cross the cheque/DD and mark it as 'Account payee'.

3. Submit the cheque/DD along with trading account details at a branch office of the broker/trading platform.

4. The cheque/DD gets cleared in 2-3 working days and the amount is credited.

5. When submitting, intimate the broker via email regarding cheque details as proof.

6. If the cheque bounces due to insufficient funds or other reasons, charges will apply.

7. Maintain proof of submission and intimation emails for records.

For non-tech-savvy investors, physical cheque/DD is a traditional and familiar way to fund trading accounts, although delays are involved. Proper planning is required to account for the clearing period.

Conclusion

Funding your trading account sets the stage for starting your investments. Evaluate the options like payment gateways, IMPS, NEFT, cheques/DDs based on your tech preferences, urgency, and a specific amount to transfer. Payment gateways and IMPS offer real-time credits while NEFT takes 2-3 hours. Cheques/DDs require manual clearance but are ubiquitous. Follow the processes diligently, and maintain records, and you can smoothly transfer money into trading accounts. Happy Investing!

 

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.