Trading Account: Features, Work And How To Open It?

Trading Account

Do you know why trading accounts have become so attractive in the stock markets? This is because it has become an essential investment tool for investors uninterruptedly. This helps in making the process of share trading completely safe and fast, which we have discussed in this article.

How does Online Trading work? 

You can start trading online with a trading account. Completes its work by linking bank accounts and demit accounts. The investor can buy shares through the trading account. The order placed by you is sent to the stock exchange for processing. After the order is processed, the shares are credited to your Demit account and certain charges are deducted from the bank account. When the investor sells the equity shares, at that time he can place a sell order of about 10 shares by taking the help of his trading account. When the order is processed with the stock exchange, the shares are debited to your Demit account. If you want to know more about bitcoin trading, then you can read from here .

How To Open A Trading Account Online?

Opening a trading account has become the easiest for you, as the process is hassled free for you. The procedure on how you need to open a trading account is explained below:

  • Research the Internet.
  • firm or choose a good broker.
  • You need to weigh the options when researching.
  • Once the firm is selected, you should get in touch with the provider of the selected service.
  • Compare its services and brokerage charges.
  • Must go through the verification process.
  • You can easily start the online transaction process from your trading account.
  • You can have a representative of the firm open the account, form and try to know the customer. You have to fill all the forms, then attach the relevant documents.
  • After submission, the personal details with the firm will be verified by check or over the phone.
  • After the application is processed, trading account details will be provided.

Documents Required For Trading Account

Users’ trading account works as demat account and savings account. The account opening process is very simple, for which you will need some mandatory documents from organizations. While submitting the document with an expiry date, you must ensure whether it is valid for the date of submission or not. Here is a list of all the documents you will need to open a trading account.

1. Proof of Identity

Submit one of the following as proof of your identity:

  • PAN Card or Aadhar Card, Passport, Driving License, Voter ID Card with valid photo.
  • Application photo for identity card, issued to State Government and Statutory, Colleges affiliated to the University, Public Sector Undertakings, Departments/ Regulatory Authorities, Professional bodies like ICSI, ICAI, Public Financial Institutions.

2. Proof of Address

You can submit one of the following for your proof of address:

  • Passport, Ration Card, Flat Maintenance bill, Voter ID Card, Sale Agreement of Residence, Insurance Copy, Driving License.
  • Address Proof issued by Gazetted Officer, Notary Public, Member of Parliament, Multinational Foreign Banks, Member of Legislative Assembly.
  • Utility bills like landline/telephone bills, electricity/Gas Bills which are not older than 3 months.

3. Proof of Income

For Income Proof you can submit any one of the following:

  • Photocopy of an Income Tax Return Slip to the Income Tax Department to you along with the tax filing.
  • Document to prove ownership through self-declaration
  • Photocopy of an annual statement along with accounts attested by the certificate of net worth.

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