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The Process to Open a Trading Account Online

If you are someone who wants to start their trading journey in the stock market, you need to open a related account. A trading account allows you to buy, sell, and hold shares. It offers an excellent electronic platform that comes with a world of conveniences. This blog will elaborate on the process you need to follow to open a trading account.

What is a Trading Account?

A stock market trading account is a type of investment account that allows you to buy and sell stocks, options, and other securities. Trading accounts are offered by brokerage firms, which are companies that facilitate the buying and selling of securities.

When you open a trading account online with a brokerage firm, they will give you a trading platform that lets you buy and sell stocks online. The broker makes money by charging commissions for each trade that you make. In addition to the commissions charged by your broker, there are fees associated with having the account itself. Some brokers charge annual maintenance fees on top of the commission fees charged per trade.

How to Open a Trading Account Online?

The process of opening a stock market trading account online is simple and straightforward. You can open an account with a broker and trade from there. Here are the steps that you need to follow:

  • Step 1

Decide on investment plans by understanding the various aspects of trading in the stock market. It is critical to research well to understand what will be in store for you ahead. You may not want any surprises down the line.

  • Step 2

Choose a broker that offers trading services for your chosen investment product. It can be stocks, bonds, or even exchange-traded funds. You can choose from among online brokers like Choice India that provide such services. We help you begin your trading journey right away through our free Demat account.

  • Step 3

Open an account with us by providing all the necessary information required for registration. It includes name, address, date of birth, phone number, email address, and bank account details.

Documents required for opening a trading account online?

Here are the documents you need to open a trading account online.

  • Identity proof

PAN Card, Aadhar Card, Voter’s ID, Driving licence.

  • Residence proof

Driver’s licence, electricity bills, telephone bills, lease agreement, gas bills.

  • Bank account proof

Bank account statement or bank passbook less than three years old.

How Does the e-KYC Process Work for Opening a Trading Account Online?

KYC or Know Your Customer is a process that stockbrokers follow to verify the identity of their customers. It is a mandatory requirement for them as it ensures there is no fraud or money laundering involved in the transactions.

The KYC process involves collecting personal information like name, address, date of birth, Aadhar Card, and PAN card number. The data gets verified and authenticated by the company or third-party service providers. Once you have completed your KYC formalities, you will get the details to open a trading account online.

Bottom Line

The process to open a stock market trading account online is simple and easy. You have to complete the online form, which asks for your contact details and other personal information. After submitting the form, you can get the bank details for money deposits and withdrawals. The stockbroker will provide you with the relevant login details that will allow you to access their trading portal.