Thinking to start trading, then you have to open a trading account. Here check the trading account process and it’s working, simple guide to open trading account, required documents for it followed by it’s benefits…
An account through which traders buy or sell stocks is referred to as Trading Account. In past times, the stock exchange was carried through an open outcry system by giving hand signals or verbal communication for stock exchange. As the entire Trading is now being carried through an electronic system, the account was adopted by all.
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These online Trading accounts do allow traders to buy or sell their stocks from anywhere and don’t actually intend to have a physical presence. The Account opened through a Stockbroker who registered and operates all systems on behalf of the trader. Thus this system of account makes the trades secure and systematic of the market.
Trading Account Process & How Does Trading Work
The account is actually a mediator between the Actual Trader bank account and the Demat Account. A trader asked to place an order of stock to buy or sell from their trading account.
In this process the quantity of stock will add or delete from the Demat account of the trader. On the other hand the equal sum of amount will deduct or add to the trader bank account. These entire processes will online and carried through quick steps without actually getting risk of losing the stock or money.
Required Documents for Trading Account
Opening a trading account is quite easy nowadays and there are few lists of verified documents that must be provided while opening account.
- Income tax Return Acknowledgment Slip of Current Financial Year
- Annual Statement of Account authenticated by an Average Chartered Accountant
- Form 16 or Salary Slip
- Income history by providing last 6months statement
- Ownership of Assets document with self declaration
- PAN Card with clear photography
- Aadhaar Card
- Driving License or Passport
- Government ID proof of residence
- Bank Passbook first page
- Utility Bill of Electricity or Water board
How to Open a Trading Account
To do trading online, a Trading Account has to create with a stock broker. Here are steps which you can follow and get a Trading Account created.
- Find a Broker
Meet a broker with good reputation of orders and who takes decisions at correct time
- Select Brokerage fees
Choose the Brokerage fees which applied on opening of your Trading Account
- Visit brokerage firm
You can else go to the brokerage firm to quickly open an account
- Provide KYC documents
Give your KYC documents as discussed above and fill relevant forms
- Pay amount
Once forms are submitted and amount is paid, the Trading Account will be created
- After verification account will be active
Upon verification, the application will be process and activated to use
Benefits of Trading Account – Online Trading
There are numerous advantages to having a account if you properly use it and make sure you list all of its features firmly.
One Point Access: Having a Account does enable you to access all different exchange platforms in one place. National Stock Exchange, Bombay Stock Exchange, National Commodity and Derivatives exchange and Multi Commodity Exchange are multiple stock exchanges in India which can seen under one Account.
Reliable Details: The investment and trading is all about making the correct decision at the right time. The account does enable you to access the research reports updated by professionals and let you make decisions. Having reliable information does allow getting a higher probability of earning higher returns.
Notifications and Customization: Trained executive provides customized support to the clients and resolves any technical issues. They help individuals in holding their trading platform by giving SMS & Email notification in regular time.
Flexibility: The App based Trading Account does allow the trader to easily get into trading along with their other works. Online trading brings flexibility and allows traders to track their investments from anywhere.
Seamless Transactions: The transaction of amount for buying or selling of Stocks becomes easier and even quicker without much difficulties. The advanced technology allows traders to easily make the decision and invest with having a clear view of their investment.
- Trading account is which type of account?
A trading account is an online stock market trading account which is different from a demat account and in order to have your trading account created you either need to work with an online brokerage or else register on an online stock market service or app.
- Trading account vs demat account?
A trading account allows you to invest in the stock market and it either created with the help of a brokerage or else an online trading account service or app. Whereas a demat account allows you to invest in the market but not online stocks.
- What is a trading account and uses?
A trading account is an online brokerage based account which allows you to buy and sell shares in the stock market rather than investing directly with a brokerage.