I was reading the latest issue of "Outlook Money"which cautioned against certain bad practices of brokers.
It had mentioned that some online brokers expect you to maintain a "running account" which, they say, means that when you purchase or sell shares, the proceeds do not immediately reflect in your account, you have to request it specifically.
Today I received a contract from Sharekhan to sign, which contained a letter saying I am willing to maintain a running account with them. I have been trading since 2003 November, but with very low volume, one or two purchases or sales per month. I am scared that for such low volume I will not be able to track a "running account".
Can someone tell me what a "running account" is? Do other brokers need it? Is it not as scary as I make it out to be?
Thanks in advance,
Deepak Shenoy
It had mentioned that some online brokers expect you to maintain a "running account" which, they say, means that when you purchase or sell shares, the proceeds do not immediately reflect in your account, you have to request it specifically.
Today I received a contract from Sharekhan to sign, which contained a letter saying I am willing to maintain a running account with them. I have been trading since 2003 November, but with very low volume, one or two purchases or sales per month. I am scared that for such low volume I will not be able to track a "running account".
Can someone tell me what a "running account" is? Do other brokers need it? Is it not as scary as I make it out to be?
Thanks in advance,
Deepak Shenoy