Approach any SEBI and exchange registered entity for opening Trading and Demat Account. It can be a bank or a stock broker, such as Bajaj Financial Securities Limited. They’ll require you to fill an account opening form that you can complete online within minutes. You just need to ensure to keep certain documents handy. You can start buying and selling shares in the stock market once you have your trading account. Read further to know how to open trading account online in India.
What is a Trading Account?
Share market has shares of companies listed on it that investors can buy and sell. A Trading Account is the interface that helps you place buy and sell order in the share market. You cannot participate in share trading without a trading account.
Benefits of Trading Account
- It helps place buy and sell order in the share market
- It can be accessed from anywhere using mobile or laptop
- Trading in Futures and Options requires you to have a trading account
- It keeps a track of your transactions in share market
Opening a trading account online is easy and can be completed in a few steps. You just have to share a few details and upload documents related to address and identity proof. Let us look at the steps on how to open trading account:
Step by Step Procedure on How to Open a Trading Account
Step 1: Select Broker or Firm
Step 2: Compare brokerages rates and services provided
Step 3: Get in touch with selected broker for account opening
Step 4: Fill account opening and KYC form
Step 5: Application verification process
Step 6: Get trading account details
Step 7: Place buy/ sell order
Now let us look in detail the different steps on how to open trading account. A stockbroker provides you Demat & Trading Account to trade in stock market, but for that you have to submit your details and perform the necessary process as required by the regulatory authorities. Opening a trading account online begins with research to find a suitable stockbroker. Read on to know in detail the steps to open a trading account.
1. Choose a Stock Broker
There are plenty of stock brokers offering you the option to open trading account. There are 2 kinds you need to choose from: 1) Traditional brokers 2) Discount brokers.
2. Compare brokerages rates and services provided
Traditional brokers will offer you trading account along with additional services such as advisory, recommendations and research reports, etc. Due to the extra services, the brokerage levied on your trade transactions will be higher. Discount brokers provide you with trading account and access to basic tools which you can use to make trade decisions by yourself. As a result, they charge lower brokerage, generally a flat fee per trade irrespective of the transaction value of the trade.
3. Get in touch with selected broker for account opening
Gone are the days of offline account opening. Now you can get in touch with a stockbroker online and visit their account opening section. You can also check their service numbers and call them to sort out any query and also to understand the promptness of service.
4. Fill Account opening & KYC Form
Once zeroing on the choice of broker, next you fill an online account opening form. With Bajaj Financial Securities you can open a trading account online in less than 15 minutes by following the below steps:
- Visit account opening form
- Provide your PAN details and fill your name, contact number, email, etc.
- Add your address details, and bank details.
- Upload KYC documents for proof of identity and proof of address, a photo, signature, and the documents for bank details, like cancelled cheque or bank statement. If you want to opt for Futures &Options trading, then Income proof has to be submitted in addition.
- Do an In-Person Verification. Record a short video of yourself and submit.
- E-sign the document using Aadhar registered mobile number
5. Application Verification Process
The online application you fill for Demat & Trading account is reviewed by the verification team at the broker’s end. The details filled in the application form is matched with the details in your proof document. Any deviation from the proof document can lead to rejection of application.
6. Get your Trading Account details
Once your account is opened, you will receive a confirmation along with login credentials. You can access your trading account and view the live share prices, create watchlist, and buy shares of your favourite companies. But before that you will need to add money into your trading account from your bank account.
7. Place buy/ sell order
Once your account is opened, you can login to your account and start buying and selling shares. Also, a Power of Attorney (POA) form will be sent to you by the stock broker. It is a document that you need to print, sign and send to the stock broker. It authorizes the stock broker to debit shares from your account whenever you place a sell order. As per the regulations, Power of Attorney (POA) authorization is required to facilitate the sell instruction from your account
Additional Read: How to open Demat Account?
Documents required to open Trading Account
For opening a Demat & Trading Account online with Bajaj Financial Securities Limited, you will need the soft copies of identity proof and address proof. PAN card is also mandatory to open a trading account.
Proof of Address: Any of these documents can be provided as address proof- Passport, driving license, voter ID, Aadhaar card with masked Aadhar number or last 3-month bank statement
Proof of Identity: Any of these documents will serve as proof of identity: PAN Card (mandatory), Passport, Driving License, Passport, etc.
Apart from these, there are some other documents required to open trading account. Irrespective of the stockbroker you choose most of them will ask for the same documents. Generally, a user can be KRA verified or KRA non-verified. A user who already has a Demat & Trading Account or is investing in mutual funds, they will come under KRA verified status. For these users, the documents required will be fewer. For example, they will not be required to provide address proof. Similarly, if a user is willing to trade in Futures and Options, they need to necessarily provide income proof at the time of account opening. So, apart from the address proof and identity proof, below are the documents required to open trading account -
- Signature on white paper
- Bank details- Cancelled cheque, bank statement with IFSC code and bank account no.
- Income proof - for F&O trading (Anyone: 6-month bank statement, 3-month salary slip, Net-worth certificate, Holding report, ITR statement or Demat holding statement).
Additional Read: How to start trading stocks
Trading Account Charges
Below are the brokerage charges for different subscription packs associated with BFSL Demat and Trading Account:
Yearly Subscription Charge: 1st year: Free
2nd year onwards: Rs. 431
Demat AMC: Free
Brokerage Charges: Rs. 20/ order (Equity Delivery, Intraday and F&O)
- Margin Trade Financing
Yearly Subscription Charge: Rs. 2500
Demat AMC: Free
Brokerage Charges: Rs. 10/ order (Equity Delivery, Intraday and F&O)
MTF Interest Rate: 12.5% p.a.
- Margin Trade Financing
Bajaj Privilege Club
- Yearly Subscription Fee – Rs. 9,999
- Brokerage - Flat Rs. 5/ Order (Delivery, Intraday, Future & Options)
- One of the Lowest MTF Interest Rates
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