A trading account allows us to place our orders with the stock exchanges. Several financial firms facilitate the opening of trading accounts. Moreover, many of them are now providing web and app-based platforms to open trading accounts online too. You can open your trading account conveniently in a few simple steps, which we shall discuss in detail. However, first, see why and how you should choose a good trading account. This would help you make the right choice all the time. Here’s what you should point your attention to.
User Interface
The first and foremost thing you should check while choosing a stock market trading platform is its user interface. One has to follow specific procedures and carry out operations to trade effectively. We should not scramble while performing these tasks.
Tools
Implementing our trades properly needs the assistance of some trading tools. So, you should access all the modern and powerful trading tools. The trading platform must host all these sophisticated tools to assist you with your trading objectives.
Market Data
An online trading platform should not only allow you to place your orders. Investing in stocks and other securities requires thorough analysis and performance checks. For this purpose, we need a lot of data regarding the market position and individual performance of securities.
Updates And Notifications
Market conditions keep on changing all the time. So, it is necessary that we remain in touch with the market as much as we can. Hence, it is vital that a trading platform keep us posted through regular alerts and notifications.
Trading charges
Stockbrokers usually levy some charges on trading accounts. They depend on the kind of services you opt for. The major ones include transaction fees, intraday trading charges, delivery fees, and annual maintenance charges (AMC). Look for trading accounts which have a reasonable fee structure.
Procedure to open a trading account
Let’s now move to the process of opening trading accounts. Here are the steps one has to follow.
1. Search for a trusted brokerage house
Your first job would be to find a good firm based on the pointers mentioned above. You should always go with reputed organisations with licences to provide financial services. This ensures the safety of your investments. Consider opening your trading account with a well-known firm like Kotak Securities. Kotak Securities also offers cost-effective trading plans. Trading charges may become a burden if you pay them Individually based on different market segments. A comprehensive trading plan reduces the burden considerably. A single plan allows you to trade in multiple securities and implement various trading strategies as well.
2. Get the account opening form
After identifying a suitable broker that can fulfill all your requirements, contact it and get the trading account opening form. You can get it from their branch office. Alternatively, find it online on its website or stock market app. You can download the form or start filling up directly. Provide your personal details such as full name, address, date of birth, phone number, email, bank and pan details etc. Also, fill up the Know your Customer (KYC) form, where you will have to mention your basic personal details. As per the existing laws, it is mandatory to fulfill the KYC norms.
3. Submit the requisite documents
Now, you will have to provide all the relevant documents supporting the details shared with the stockbroker. The broker will verify the information and ascertain its authenticity. You will require the following documents.
Identity proof: Aadhaar card, Driving license, Voter id, Pan card and Passport
Address proof: Aadhaar card, Driving license, Voter id, Utility bills such as electricity bills, water bills, telephone bills, land lease papers etc.
Bank account: Photocopy of passbook and recent account statements, cancelled cheque
Submit physical copies of these documents or scan and upload them if you go for an online account opening.
4. Sign the agreement and receive your BO ID
Upon successful verification, sign the agreement provided by the broker. After that, you will get the Beneficiary Owner identification number (BO ID). The broker will then send the login id and password to the registered email id and mobile number. Use them to access your account and start placing your bids. Your investing journey thus begins. You can trade with a stock trading app or with the website depending upon your need. You can also diversify your portfolio using informed trading decisions.
