How to Open Trading Account – Step by Step Guide

 In the last few years, a significant change can be noticed in the way of transactions for anything – from purchasing to selling. In simple words, the nation is moving towards cashless economy – as government is focusing on pushing digital forms of transaction in the country Digital modes of transaction are faster, secure and more cost-effective. Stock market has already migrated from physical to electronic mode of trading (from 1996). Now, trading account has become the basic need to start trading. Here, the most important question is, “how to open trading account”.

Before you start click on a link anywhere, it will be better to know about trading account. You have different accounts and that is linked and works in combination with each other. The demat account is hosted by depositories and used to store different kinds of securities bought by the investors. When you have to sell your holdings or buy new securities, you will have to use a trading account – essentially in interface between the demat account and the investor It is not possible to buy or sell a unit of security without a trading account The trading account has truly replaced the open protest system widespread in earlier times.

How to Open Trading Account?

It is far easier to open a trading account as you have to choose brokerage firm to open a trading account. For this, it will be better to do research and opt for a credible brokerage firm.

·         You need to stay in touch with the brokers immediately after zeroing in on the broker and enquire about the trading account opening procedure.

·         Your broker may require you to fill up an account opening form and know your customer form.

·         A representative from the brokerage firm will help you with the entire process.

·         You will have to submit ID proof, residence proof and in some cases proof of income. A photocopy of the Adhar Card or Passport is required.

·         PAN Card is also required to complete the process.

·         KYC is done by visiting house to verify the documents or you may be asked to verify the document online or over the phone.

·         E-Process of KYC is also done that is based on your requirement.

·         For this, you will have to ensure that your PAN card is linked to Aadhar Card and your account.

You will get your account within a few minutes or even in the day. From a selected agency, you will also get the right solution for, “How to Open Demat account”.