The electronic transformation of Indian securities market has resulted in voluminous online trading of stocks. A trading account is a necessity in such a scenario. Find out the process of opening a trading account right here.
By and large, stock broking firms in India have to deal with millions of clients. This in turn requires the dexterity of brokers to take and maintain physical orders from their clients on a timely basis. To meet the cause, regulators have enabled a way out for making the process flawless. Now, all those interested in trading stocks are required to open up a trading account through which buying and selling of orders are generated automatically; and reach the stock exchange via registered stock brokers in good time.
So, if you have been planning your entry into the stock market but have little clue about how to go about the act, then what follows here is surely for you.
Steps to Open a Trading Account
Step 1: Selection of broker: We all know the importance of time in stock online trading as a couple of minutes can have a huge impact upon the stock’s price. This first step indicates that it is very essential to select the best broker who will take and process your order the right way.
Step 2: Comparison of service quality and rates of brokerage: This step throws light upon the importance of comparing the rates of different brokers. This is an essential requirement because the processing fees of different brokers will surely vary from each other.
Step 3: Connecting with the chosen broker for opening a trading account: It is absolutely not necessary that the brokers who charges lesser than others should be selected. The services provided by experienced brokers often attract higher fees than the market average. So, it is essential that all the pros and cons are evaluated critically before freezing upon a specific broker.
Step 4: Submission of the completed Account Opening form and Know Your Customer form along with identity proof and address proof: After you have selected the best broker as per your evaluation, you need to contact the broker / brokerage firm for gaining knowledge about the trading account opening processes. Ask around for more information on various types of trading options like Forex trading, commodity trading, share trading, and so on. Generally, the brokerage firm selected by you will send its representative to your office along with the KYC and online trading account forms.
Step 5: Waiting for the broker (or the firm) to initiate the verification process of the application: After filling up the forms, you have to submit the same along with other documents related to identity proof and address proof.
Step 6: Receipt of details about the trading account via regular post: Once the firm receives your documents, they would verify the forms either in person or over the phone. Once done, the requisite documents will be sent to you by post.
Step 7: Placement of order for buying or selling stocks after activating the account: Once everything gets processed, you will be served with the details of your trading account. Bingo! You are now all set to trade online in the online share market.
The Required Documents
To verify your submitted details, and for opening up an online trading account, the proofs of your identity and address will be required by the broker.
- As a proof of identity you can submit any one out of your PAN Card, passport, driving license, voter ID card, telephone bill, etc.
- The acceptable documents have to be issued by the State or Central Government, regulatory authorities, PSUs, public financial institutions, etc.
- As a proof of address, you can furnish your ration card, voter ID card, passport, driving license, electricity bills, bank statement photocopy, and so on. These documents have to be issued by regulated authorities as well.
So are you now empowered with the knowledge pertaining to how to proceed with initiating a trading account? Possibly yes! So, wait no longer and fulfill your wish of becoming rich through online trading.