How to Open a Trading Account Online in India

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:

How to open a trading account online

Follow these steps to open trading account online:

Step 1: Choose a stockbroker

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.

Step 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.

Step 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.

Step 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:

1. Visit account opening form
2. Provide your PAN details and fill your name, contact number, email, etc.
3. Add your address details, and bank details.
4. 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.
5. Do an In-Person Verification. Record a short video of yourself and submit.
6. E-sign the document using Aadhar registered mobile number

Step 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.

Step 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.

Step 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 stockbroker. It is a document that you need to print, sign and send to the stockbroker. It authorizes the stockbroker 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

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 -

1. Photo
2. Signature on white paper
3. Bank details- Cancelled cheque, bank statement with IFSC code and bank account no.
4. 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).

Trading Account Charges

Below are the brokerage charges for different subscription packs associated with BFSL Demat and Trading Account:

FREEDOM PACK

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)
MTF Interest Rate: 18% p.a.

Products Included:

• Equity
• Derivative
• Margin Trade Financing

PROFESSIONAL PACK

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.

Products Included:

• Equity
• Derivative
• 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