The Best 3-in-1 Trading Account in India Stock Market - ICICI, HDFC, SBI, Kotak

Published on Wednesday, July 18, 2012 by Chittorgarh.com Team | Modified on Tuesday, May 21, 2019

The 3-in-1 account consists of 3 separate accounts open together including a Bank Account (a normal bank account where your money resides), a Trading Account (a share broker account which allows you to trade in equity, F&O etc. segments) and a Demat account (it holds the equity shares purchased by you).

3-in-1 Account = Bank Account + Trading Account + Demat Account

The beauty of 3-in-1 account is seamless transaction between these three accounts. It also offers wide range of investment products under this account.

When the account holder buy shares through trading account; the money get automatically debited from the saving bank account and share are automatically credited to the demat account. Similar way when shares are sold through trading account; the money gets credited to the bank account and shares are withdrawn from demat account. The money remain in your bank account can be used like any normal bank account (i.e. you can withdraw that using your debit card).

While the cost of trading is generally high with the companies offering 3-in-1 account, the hassle free investing and integrated financial solution provide unique benefits. These accounts are especially good for people who invest in stock market for long term basis or people who do not mind paying a little more brokerage for the hassle free service.

If you are a beginner in stock market or an investor in the market (not a regular trader) then this type of account are highly recommended.

Other benefits of 3-in-1 account include:

1. Investment and trading in Equity
2. Investment in IPO's
3. Online Mutual Funds investment
4. Derivative Trading (Trading in Futures & Options or F&O)
5. Saving Account can be used as normal bank account
6. Insurance, NPS, Tax Services & many more financial services

Many shares brokers in India who also provide banking facilities through there parent company, offers 3-in-1 account. Some of the popular brokers include ICICI Bank, HDFC Bank, Standard Chartered Bank, IDBI Bank Ltd, Kotak Securities, Axis Bank and SBI.

ICICI 3-in-1 trading account is the oldest and most popular service provided by ICICI Bank. There strong network of branches makes this account very attractive. HDFC 3-in-1 trading account is another very popular and equally good service provider. SBI 3 in 1 account and standard chartered 3 in 1 account are also provides good investment options.

To know more about the services offered by these companies, there reviews, complaints and rating; please visit the broker page through the link below:

1. ICICI 3 in 1 Account Review
2. SBI 3 in 1 Account Review
3. HDFC 3 in 1 Account Review
4. Kotak 3 in 1 Account Review
5. IDBI three in one Account Review
6. Axis Bank 3-in-1 Account Review

Note: If you already have a saving bank account or demat account, it can be linked to trading account to make it 3-in-1 trading account.

What is meant by 3-in-1 account?

People who are new to trading and wish to open a trading account, frequently ask these questions-

• What is a 3-in-1 account?
• What is a 2-in-1 account?
• What is the difference between 3-in-1 account and 2-in-1 account?
• Which one is best, a 3-in-1 account or a 2-in-1 account?
• Which bank is best for a 3-in-1 account?

If you wish to open a trading account to trade in stocks, derivatives, IPO etc., you have two choices- 2-in-1 account and 3-in-1 account.

What is a 3-in-1 account?

A 3-in-1 account includes a savings account from a bank, a demat account with either of the central depositories NSDL and CDSL and a trading account to buy and sell various financial instruments. All the accounts are jointly opened by a broker. Normally 3-in-1 accounts are offered by broking companies which are a part of a banking group like HDFC Securities, ICICI direct, Kotak Securities and Axis Securities.

What is a 2-in-1 account?

A 2-in-1 account includes only a demat account and a trading account. There is no bank account linked to this account. A 2-in-1 account is generally offered by a non-banking broking company like Zerodha, Sharekhan, Indiabulls etc.

What is the difference between 3-in-1 account and 2-in-1 account?

The only difference between a 3-in-1 account and a 2-in-1 account is the inclusion of a bank account in the package and the convenience it offers to a trader. Rest all remain same. The trading and the demat account offer same facilities in both types of account.

Which one is best, a 3-in-1 account or a 2-in-1 account?

From trading convenience point of view, a 3-in-1 account works better than a 2-in-1 account. You need 3 things to trade in a financial instrument-

• Money or Funds
• A trading account that gives you access to a trading platform (web-based, installable platform or a mobile app) to help you make buy and sell transactions.
• A demat account from either of the central depositories, CSDL (Central Depository Services Ltd) or NSDL (National Securities Depository Limited), where the certificates of your holdings will be stored in the dematerialized or electronic form.

If you open a 3-in-1 account then it is easy and fast for you to move funds between your bank and trading account. The transfer of funds happen in real-time. So if you see a trading opportunity, and there aren't enough funds in your trading account, then you can quickly transfer the funds and execute your trade.

If you open a 2-in-1 account then you have to transfer your funds from other bank account to your trading account. This transfer can take time between a few hours to a day depending on whether you are transferring funds via IMPS, NEFT or a cheque. The broker or the bank may also charge you a fee for fund transfer.

So the choice between a 2-in-1 account or a 3-in-1 account comes down to your convenience.

Which bank is best for a 3-in-1 account?

All major banks SBI, ICICI, Axis, Kotak, HDFC etc., who have a brokerage company in its group offer 3-in-1 accounts. The features of most of the 3-in-1 accounts are similar. However, there are a few factors to consider while choosing the best 3-in-1 account-

• Minimum Balance requirement- Does the 3-in-1 account requires you to maintain a monthly, quarterly or yearly balance? In most cases, the savings account is a zero balance account and doesn't require maintaining any balance. However, some banks put a clause of minimum trading activity in your trading account. If you don't do the minimum trading activity then your bank account may be converted from a zero balance to a minimum balance account.
• Brokerage Charges- The brokerage charges varies from broker to broker. So compare the brokerage charges before choosing your 3-in-1 account.
• Segments- Not all brokerage companies facilitate trading in all segments like equity, derivatives, currency and commodities etc. So make sure that the bank you are opening a 3-in-1 account facilitates trading in segments of your choice.
• Trading facilities- It means trading tools, platform features and other trading assistance offered by brokers. You must also consider the quality trading tools, platform features, research advice, training tips etc., offered by the broker before choosing the right 3-in-1 account.