Step-by-step guide on how to open a trading account

Trading is an exciting business’. It can be a rewarding experience both financially and mentally. But, only if you have the perfect tools and time to research each trade properly. Trading account provides a platform to an individual to buy or sell securities, bonds, derivatives and ETFs. Thus, opening of trading account is the beginning to start with stock trading.

Hence, you must know these following steps on how to open a trading account online in India:

1. The first step involves selection of a stock broker or firm. You need to ensure that the broker is good and will thereby take your orders in a timely manner. Remember, time plays a very crucial role in stock trading. A few minutes can change the market price of the shares. Therefore, for this reason, you must ensure that you select a good broker.

2. Besides, you need to compare brokerage rates. Every broker charges a certain fee in order to process your order. Some may charge you more, some charge less.

3. Though some give discounts on the basis of amount of trades conducted. Therefore, you must take all these things in to account before opening a trading account. Although, it is not necessary to select a broker who charges the lowest fee. Sometimes, for good quality brokerage services, it’s better to pay higher-than-average charges.

4. Afterwards, get in touch with the stock broker or firm and enquire further about account opening procedure. Register on the stock broker’s website and fill in the required information. Often, the company would send a representative to your house with an account opening form and know your client (KYC) form. This is in case you open the trading account offline.

5. After filling these two forms, you can submit along two documents that serve as a proof of your address or identity online.

6. Thereafter, your application will be verified either on phone or as in-person check, where you will be asked to share your personal details.

7. Once processed, you will get your trading account details and by now, you will be able to conduct trades in the share market.

So, those who want to trade in stock markets can follow these above-mentioned guidelines before opening a trading account. Beginners can also read through blogs that offer substantial guidance on how to open a trading account online in India.