How to Open a Trading Account

Your trading account is your gateway to your wealth creation. In the old days, it meant a lot of paperwork. You had share certificates and trading slips beside the paper needed for bank transactions. Electronic trading began in 1992 with the creation of the National Stock Exchange. It ensured that the buyers and sellers of shares didn’t have to be physically present during trading.It is mandatory to have a trading account to invest in the stock market and make trading easy and smooth. Electronic trading has made life simpler for everyone. The introduction of dematerialisation of shares or demat accounts ensured that buyers and sellers exchanged shares and money smoothly to provide a reasonable settlement.

What is a trading account?

A trading account helps you to buy and sell shares.When you start trading electronically, your account acts as the link between your demat account and your bank account. You place the order for shares through the trading account. Once the orders are placed, the number of shares traded is stored electronically in your demat account, and the money is debited from your bank account.

Trading electronically is easy;all you need is online access. Once you log in to your trading account, you need to select the security you are interested in trading. Once you do so, a simple click on the mouse,and you can place your order.

Steps to follow before opening a trading account:

Share Trading

●       Choose a reputed depository participant or brokerage firm

You first need to choose a reputed brokerage firm that will trade on your behalf.You need to select a full-service broker. Apart from buying and selling shares, the brokerage firm should support investors with research and technology to make sound investment decisions.

●       Check the fees

For opening a trading account, the brokerage might want you to pay brokerage, which you pay every time you trade. You also need to check for demat charges.The brokerage charges you an annual maintenance charge for maintaining your demat account. You need to make sure that you are entirely aware of all the fees and the pricing system is transparent.

●       Check the trading platform:

You need to choose a brokerage that offers you a trading platform that is easy, fast and safe to use. The technology and tools available should be good enough for you to make lightning-fast decisions and not miss out on any deals.

●       Check the brokerage’s customer support:

The brokerage will need to provide you with excellent customer support. You might have days when your trading does not go as planned. Having an experienced team that understands you and your investment needs will help you make better decisions.

●       Make sure you have all the documents

To complete the stock broker’s,know your customer norms. You need to have your Aadhaar card, Permanent account number card and other details to verify your identity and proof of address. You also need to have proof of income; you might have to produce tax slips and bank statements. You would also need copies of scanned/ photographed documents.

●       Demat account and bank account

You need to have an active demat account and a bank account.Choosing a broker who will provide you with all three accounts will make the application process more manageable.

How to open a trading account online:

  • Click on “open account” on your brokerage’s website.
  • Enter your mobile number registered with your Aadhar account
  • Click on the GET OTP option
  • You will receive a message to the provided number
  • Once you enter the OTP, keep your Aadhar number, PAN card, a cancelled cheque copy, and your signature on a blank piece of paper.
  • You also need to ensure that your camera/laptop webcam is working fine
  • Sign in with your e-mail address
  • A new page will pop open asking you for your PAN card details. You have the option to use the online guide that will provide you with step-by-step instructions on how to fill in these details.
  • Fill in your PAN number and select your date of birth as per your Aadhaar card.
  • You also have the option to select if you want to receive any of these updates on WhatsApp.
  • You then have to link your bank account details
  • Identify yourself by validating your Aadhaar
  • You then enter your other details and upload all the documents mentioned above
  • Finally, you have to verify your live photo and e-sign all your documents.

Conclusion:

Having a trading account opens up an ocean full of opportunities for you. Investing in stocks through a trading account helps you save and create wealth.You can get instant access to a wide range of investment products and services. It is also a safe and secure environment for personal details and data to be stored.

Disclaimer:

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai – 400020, India, Tel No : 022 – 2288 2460, 022 – 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

Related Posts