In today’s technology-driven world, investors are no longer required to visit the stock exchanges to register a trading account on the investment platform. Now, all you need is a strong internet connection and a smartphone to execute trades online.
In order to start online trading, you are supposed to create the Demat account and online trading account. Moreover, the trading account needs to be linked to demat and bank account to process the transactions. Demat, bank, and trading account work in tandem.
The trading account executes all kinds of trades. You cannot purchase and sell securities without a valid and reliable trading account. All you got to do is place an order for the number of stocks you want to purchase and it will be sent to the stock exchange.
As soon as the stock exchange accepts your request, the stocks will be added to your Demat account. The amount will be deducted from the linked bank account automatically. The question is “how to create a trading account online”?
In this post, we will walk you through a few crucial steps for registering an account on the stock trading platform. So, let’s take a look:
Choose a Brokerage Firm
First things first, you can’t manage your investment portfolio and stock transactions single-handedly. You need a licensed broker to complete the transaction on your behalf.
You must hire a reliable broker by conducting proper research. Visit their official website and check their experience in this industry and the clients they have served.
You can set up an account on the trading platform on your own, but you need a professional broker to understand the industry and place an order.
Link Demat and Bank Account to the Trading Account
The bank account is used to purchase securities by making a deposit. You need a bank account to withdraw your earnings from the share market.
Demat account, on the other hand, is used to hold the stock. The different types of securities you purchase from the stock market are stored in the Demat account until you sell them.
The brokerage firm will create both a trading and Demat account for you. However, if you already own a Demat account, you can link it to the trading account.
You are going to need to submit your personal information to complete the verification process.
Submit the Basic Documents for Trading Account
In order to create a trading account, you will be required to submit the personal documents. First of all, you have to submit identity proof. Any ID issued by the government can be used as the identity proof for creating a trading account.
You can use a PAN card, Aadhar card, or a photocopy of your passport to complete the transaction. Additionally, you will need to submit the residence proof. For that, you can submit the utility bill or bank statement. Remember that a PAN card is a must for a trading account.
If you don’t have one, apply for the PAN card online before registering an account on the investment platform.
Once you have submitted the documents, the brokerage company will conduct the verification. They will either pay a visit to your home for verification or verify these documents over the phone.
Either way, it is important to complete the KYC verification to open an account on the trading platform. You could also get your documents verified automatically.
Make sure that it takes 3-4 business days to start your trading account. Once the documents are verified, your account will be opened.
You can search for the companies listed on the stock exchanges and place an order for the shares.
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