Any individual can open a trading account as long as he has an identity proof and an address proof. These documents are necessary while opening a trading and a demat account. You can provide your voter’s ID, PAN card, driver’s license, passport or bills as identity proof. As proof of address, ration card, driving license, bank passbook, voter’s ID, electricity bill, telephone bill, etc. can be submitted. You should also have a savings account as it is needed to transfer/receive money when you buy/sell shares through your trading account. It is advisable to open a trading account once you are well versed with the fundamentals of trading.

The first step to open an online trading account in selecting a broker or a firm. Make sure that the broker/firm is registered with the Securities & Exchange Board of India (SEBI). Select the best service provider based on its reputation, service provided, security, brokerage fees and consultancy services. Once you’ve finalized the broker, fill the Account Opening form either online or collect it from the branch. Along with the duly filled form, submit the required KYC documents, such as your identity proof and address proof. Post verification of the application, you will receive your trading account details. You can then make online transactions and manage your stock portfolios as per your convenience.

Sometimes, applicants may face issues during the application; e.g. some may enter a different address in their Account Opening Form and their address proof may have a different address. In such cases, the verification process make take longer than expected, thus causing a delay in the opening of the account. Once, the verification of documents is done, a welcome kit is dispatched to you with your trading details.