Stock trading is no more a barrier for retail participation with the introduction of an online trading system. The concept of demat trading was introduced in 1996 to facilitate the online trading system in India.
Here is the guidepost on how to open a trading account easily and a few considerable aspects. First, let us elaborate on trading accounts.
Understand Trading Account
A trading account is an online account, like a demat account, with a stockbroker. It is required to place buy/sell trade orders online in the stock market. You need to link your trading account with your Demat account to transact for purchasing different types of financial securities. Using your trading account, you can access multiple stock exchanges and buy or sell financial securities at the relevant stock exchange online. It can be stocks, mutual funds, derivatives, bonds, etc. When you open a
You need your trading account to access multiple stock exchanges. With your login credentials, you can use a trading account to place a buy/sell order on the stock exchange.
Aspects and Tips to Consider to Open your Trading Account
- Look for Lower Transaction Costs
When you buy or sell securities, your trades attract transaction costs. It can reduce your profits or can add up to your losses. Look for the broker charging low transaction costs.
- Find a Reputed Broker
Retail investors invest their hard-earned money. You may need a helping hand in your trading journey. You can choose reputed brokers as they offer you a free trading account and research reports prepared by experts in the industry. You can use these reports to make trading decisions at the right time.
- Look for a User-friendly Trading Platform
User experience with trading platforms provided by the brokers and availability of tools are key considerations while opening a trading account. It should be a customisable platform with charting indicators and easy to use. If you are experienced in the stock market, you can look for an automated trading option also.
- Trading App
In today’s context, most investors prefer mobiles or tablets to trade online over laptops or desktops. You can check the broker’s trading app. If they offer a user-friendly mobile trading app, it would really help you.
- Ease of Opening a Trading Account
Traders are in search of the most convenient option for online trading. Most of us do not want to physically head up to the office to open a trading account. You can look at a broker following the 100% digital trading account opening process.
- Products Available
The variety of products offered on a trading platform is important. A single trading account allows you to trade across a variety of asset classes. Financial assets can be in the cash, debt, and derivatives market. Your trading platform should allow trading in equities, indices, and forex to gain from the available opportunities.
- Leverage advantage
Most intraday traders prefer to trade on margin. Margin trading refers to a borrowing facility offered by stockbrokers to the clients. You can check for a stockbroker offering margin trading financing at a low-cost interest rate.
- Educational support
Trading requires skills, knowledge and experience to survive in the stock market. Established trading platforms offer valuable support to their clients through educational blogs and personal advisors. Industry experts’ advice can help you to increase your knowledge, develop your skillset and build trading strategies.
Formalities to Open Trading Account Online
You can create your trading account with your demat account by submitting a single online application. Fill out the demat account opening form and submit it with the scanned copies of the following documents:
- PAN card
- Residence Proof
- Canceled cheque
- e-Signature and passport size photos
- Income Proof – Form-16/ITRAcknowledgment/Recent salary slips/6-month Bank statement/Networth certificate from a CA.
These are the easy and quick tips that will help you to open your trading account on a discount broker’s website quickly.