What are the main differences between otc accounts and ordinary accounts?
The difference between an OTC account and an ordinary account is that:
1, trading places is different.
OTC accounts are OTC accounts, and ordinary accounts are OTC accounts.
2. Different customers
Otc account is a special account type, which is mainly used for daily revenue and expenditure management and fund transfer of corporate and institutional customers. Over-the-counter trading refers to the trading activities outside the exchange, which are large in scale. The transaction object is not ordinary investors, but institutional investors or large investors, and both parties can freely negotiate the transaction price and quantity.
Ordinary accounts serve ordinary investors, and the transaction objects are buyers and sellers of stock exchanges, which can be used for daily consumption, storage and transfer.
3. Different types of transactions
There are relatively many types of OTC account transactions, including foreign exchange, gold, silver, crude oil, stocks, bonds, funds, futures and financial derivatives. Ordinary accounts mainly trade stocks, bonds, funds and other varieties.
4. Different transaction costs
Off-exchange accounts need to provide more professional services, and the labor cost is higher, so the account management fee and transaction fee charged are higher.
The service scope and service level of ordinary account are relatively simple, and it does not need to invest too much cost, so it is cheaper than off-site account.
5. Different security.
Otc accounts have stricter auditing standards and higher security than ordinary accounts. Banks will provide corresponding security measures according to the actual needs of customers, such as secondary verification and digital signature.
The security of ordinary accounts is protected by customers themselves, and they may encounter problems such as password leakage and online fraud, so the security is relatively low.
6. Different fund operation modes.
To transfer funds from otc account, you need to recharge it on the trading platform now, and then enter the trading platform to transfer the funds to OTC account after the recharge is completed.
The funds transferred to the master account can be directly transferred out through bank transfer.
In short, OTC accounts and ordinary accounts are aimed at different trading markets, and each account has its advantages and disadvantages. Investors should choose appropriate accounts according to their own needs and risk tolerance.