How to Open a Share Trading Account in India?
Tips On Opening Share Trading Account in India
To begin trading in the stock market, you will need two accounts: the trading and the demat (dematerialized) account. In some parts of the world, the demat account is not necessary, however, there are some share markets that do require you to have one.
Read on to find out the steps to be part of the share trading firm:
1. Go to a Brokerage Firm
The best and easiest way for you to create these much-needed accounts for trading is to go to a brokerage firm.
A brokerage agency is where you will find a stockbroker or an agent and for those of you who do not know, they are the ones who are going to either do the trades for you or they will act as the mediator between you and the company of your choice.
Aside from that, you will also need to know about full-service and discount brokers. The former offers a full suite of services that every beginner trader would need. This includes, but is not limited to, buying and selling of stocks, providing educational materials, opening accounts, and so much more.
The discount brokers, on the other hand, provides only the essential services like trading and being an intermediary. Because of their limited service, their prices are also much lower than the full-service ones.
2. Look at the Different Prices
When you’re getting a stockbroker, do not just go to just one broker agency; go to a lot of them and ask about their pricing models.
There are some brokers that you pay after every transaction and there are also some brokers that you will pay just a small commission.
Furthermore, some agencies will require you to do a minimum deposit and there are also others that don’t.
Lastly, some agencies also offer discounts and perks that are not present in others such as discounted prices on huge trades, information and data dissemination to clients, among others.
3. Complete the Necessary Forms
Since going to a brokerage firm is a great step for beginners to start trading, you will be asked to fill out a number of forms, one of which is the KYC or the Know Your Client form.
This is basically a sheet that requires your personal information and your financial credentials. You will also be required to present two valid IDs. You can bring your birth certification, PAN Card, Voter’s ID, Passport, just to name a few.
They will cross-check this to see if the information you’ve input in the form matches your credentials on your identification cards. Once everything is verified, you will then be given your very own trading account details.
All of this can be done conveniently by going to a stock brokerage firm. After that, you not only have the dematerialize account, but you will also have a bonafide trading account as well. Happy trading!