How To Open A Trading Account

Most often, stock broking firms have thousands of clients. It is not feasible to take physical orders from every client on time. So, to make this process seamless, you open a trading account. Using this account, you can place buy or sell orders either online or by phone, which will automatically be directed to the exchange through the stock broker.

How To Open A Trading Account?

• First, select the stock broker or firm. Ensure that the broker is good and will take your orders in a timely manner. Remember, time is of utmost importance in the stock market. Even a few minutes can change the market price of the stock. For this reason, ensure that you select a good broker.
• Compare brokerage rates. Every broker charges you a certain fee for processing your orders. Some may charge more, some less. You can read about the different offerings from Kotak Securities here.
• Some give discounts on the basis of the amount of trades conducted. Take all this into account before opening an account. However, remember that it is not necessary to choose a broker who charges the lowest fees. Good quality brokerage services provided often may need higher-than-average charges. You can even pay the brokerage in advance to avoid any more fees. This is Kotak Securities Advance Brokerage.
• Next, get in touch with the brokerage firm or broker and enquire about the trading account opening procedure. Often, the firm would send a representative to your house with the account opening form and the Know Your Client (KYC) form
• Fill these two forms up. Submit along with two documents that serve as proof of your identity and address.
• Your application will be verified either through an in-person check or on the phone, where you will be asked to divulge your personal details.
• Once processed, you will be given your trading accounts details. Congrats, you will now be able to conduct trades in the stock market

Document Required To Open Trading Account

Just like the procedure for opening a demat account, you need to submit proof of identity and address along with a passport size photograph and the account opening form for opening a trading account. Here is a broad list of documents that can be used as proofs:

• Proof Of Identity

PAN card, voter's ID, passport, driver's licence, bank attestation, IT returns, electricity bill, telephone bill, ID cards with applicant's photo issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, colleges affiliated to universities, or professional bodies such as ICAI, ICWAI, ICSI, bar council etc.

• Proof Of Address

Ration card, passport, voter ID card, driving licence, bank passbook or bank statement, verified copies of electricity bills, residence telephone bills, leave and licence agreement or agreement for sale, self-declaration by High Court or Supreme Court judges, identity card or a document with address issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, colleges affiliated to universities and professional bodies such as ICAI, ICWAI, Bar Council etc.