Atrading account is the medium to trade in the stock market. It can be compared to the interface of an
e-commerce site that shows the products listed by various sellers. You can place an order to buy or sell a stock through the trading account. Your order request placed via trading account is forwarded to the stock exchange and when the order gets executed, you get the shares credited in to your demat account. Generally, you get demat account along with the trading account.
Here are the steps to open Trading Account:
- Find an online stock broker: Conduct a thorough research and choose a reliable broker.
- Once deciding the broker, check for their online account opening form available on their website. PAN Card is mandatory to open a trading account.
- Fill your name, mobile number, email, etc. Add your PAN Card details. Enter your address and bank details.
- Along with these, you have to upload soft copies of your KYC documents for proof of address and proof of identity.
- Next, perform in-person verification. This step is essential to eliminate the risks of some-one else using your details to open an account. Some brokers might give you the option of e-verification where you upload a short video of yourself as an authentication.
- Depending on the broker, you might be required to take a print out of the form and sign it physically or e-sign through Aadhaar.
- Once the form is signed, send it to the broker, or in the case where broker lets you e-sign through Aadhar, you can submit the form after confirming the details. Depending on the broker, it might take anywhere from a few hours to a few days to open your trading account.
Trading Account Charges:
There is an account opening charge associated with the trading account. Some stock brokers offer you to open free trading account with zero Annual Maintenance Charge (AMC). Trading charges are levied on your transactions in stock exchange that varies across the stock brokers.