A fund trading account is an account opened by a selling institution for an investor to record the movements and balances of fund shares bought and sold through that selling institution. Generally, an investor has to open a fund account first, and then the selling institution automatically opens a fund trading account for you when you buy a fund. An investor can only open one fund account, but can have more than one trading account.
A fund trading account is an account set up by a bank for investors to trade funds with the Bank. When an investor conducts fund business through a bank outlet, he/she must first open a fund trading account. The account is used to record the fund trading activities and fund shares held by the investor. A fund trading account is an account for the movement and balance of fund shares bought and sold by the investor through that sales agent.
The difference between a fund trading account and a TA account
A "TA account" is an account established by the registrar for the investor to manage and record changes in the type and quantity of funds held by the investor, and is recorded under that account regardless of the channel through which the investor is dealing.
A "trading account", on the other hand, is an account established by the fund's sales institution (including direct sales and distribution institutions) for the investor to manage and record changes in the type and quantity of funds traded by the investor with that sales institution. For example, if an investor buys funds from different companies at the same bank, he or she will have several TA accounts with the fund company but only one trading account with that bank; conversely, if an investor buys funds from the same company at different banks, he or she will have several trading accounts but always only one TA account. The trading account is associated with the bank and the TA account is associated with the fund company.
