Hi folks,
Do you think a seperate account for trading and investing will help?
Few pros: seperate money management, better discipline
Cons: ??
Please share your thoughts.
Cheers
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I had the exact same question & wanted to post it here. I definitely look forward to having this.
Consolidation of accounts should be done to handle multiple instruments: Stocks, ETF, Derivates, Mutual Funds, Commodities, IPOs, Bonds,FPO, OFS. If you start having multiple accounts, your life will be hell.
Your justification of money management can still be done while maintaining a single account.
Cons:
You will need to track all these accounts - userid/password, trading password, telephone pin, etc.
Periodic KYC/FATCA and other never ending regulations for all these accounts.
Pay separate yearly/maintenance fees for each of them
Moving of Funds from one account to another via payment gateways
Not able to take advantage of leverage in one asset class for another
Checking ledger entries for each of these accounts
Wasting time in later consolidating the separate accounts in your personal excel sheet 
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Wont make much of a difference.
Yes, it helps to make a point that ur trading is seperate from ur investing
However, there are a few cases where IT dept has disputed that long term tax savings wouldn’t apply to equity that you are holding, because its “business income” and therefore, the LTCG/STCG don’;t apply
having 2 accounts in ur name is also fine, and normally works, but in very rare cases it might be subject to interpretation.
Alternately, invest in relatives name (close relatives, like parents, spouse etc)
and trade in ur name.
Another way around is to register a partnership or a LLPand trade in its name.
whereas u ahve the investments in ur name
the down side is that the tax exemptions (applicable for the 1st 2.5L etc)
and the tax slabs don’t apply
Normally taxation for LLP etc is 30% flat on all profits.
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