How to Set Up a Stock Trading Account

• Highlights

• Find a stock broker

• Open Demat and Trading Account

• Login to your Demat and Trading account & add money

• View stock details and start trading

To start trading online, you need to open a Demat and Trading Account with a stock broker. Once the account is opened, you can log in to add money to your trading account from your bank account. Use the trading platform to view stock prices, historical data, charts, etc and get started with buying and selling shares. Explained below are the steps on how to start trading in india:

• Related Product & Tools

• Open Demat Account
• Documents required for Demat and Trading Account
• Low Brokerage Demat Account
• Demat Account Charges
• Upcoming IPO

4 Steps to start online trading in India:

1. Find a stock broker

• First step will be find an online stock broker. They provide you the facility to open a Demat and Trading Account. A trading account helps you place a buy or sell order in the stock market, whereas a Demat Account stores the shares you buy in a digital format.

• While choosing a stock broker, check the Demat and Trading Account opening charges and the Demat Annual Maintenance Charges (AMC). Bajaj Financial Securities Limited provides you an option to open free* Demat and Trading Account with zero Account opening charges and zero AMC for 1st year through its Freedom Pack. (AMC of Rs.431 is applicable from second year onwards).

• Next you have to check the brokerage charges. Whenever an order you place in stock market gets executed, the broker charges a fee, called brokerage. This fee can depend on the trading volume of your order or it can be a flat fee per trade irrespective of the trading volume. Traditional brokers levy percentage based brokerage, proportional to the trade volume, which increases the brokerage costs if you trade more often. With a flat fee per order, you can save significantly on the brokerage costs. Bajaj Financial Securities offers flat fee per trade which can save you big on the brokerage charges.

Additional Read: How to Open Demat Account?

2. Open Demat and Trading Account

To open a Demat and Trading Account, you need to fill an online account opening form with the broker. The form filling is easy and can be completed in less than 15 minutes. With Bajaj Financial Securities, you can open an account by following the below steps:

1. Visit the account opening form link

2. Enter your basic details, such as name, email id, PAN No. , DOB, etc.

3. Provide your address and bank details

4. Upload documents related to your proof of identity and proof of address

5. Choose from our affordable subscription plans. If you want to open a free* account, you can choose Freedom Plan

6. Perform a self-verification, by recording a short video of yourself and submitting it

7. E-sign your form through the OTP sent on your Aadhar linked mobile number

8. Submit the application. A confirmation regarding your account opening and login credentials will be shared with you in a short duration.

3. Login to your Demat and Trading account & add money

Once you have your Demat and Trading Account login and password, next you can log in into your account and explore the trading platform. If you have signed up with us, you can download our Mobile trading app for a seamless trading experience.

Now that your account is created, you can add money from your bank account to your trading account. Note that you can also transfer money from your trading account to your bank account.

4. View stock details and start trading

Now you are ready to get started with online trading. You can view the live market prices of shares in your trading account. You can select a share and view it's in depth detail, historical prices, charts, etc. Once you are through your analyses, you can start buying shares and start your investment journey.

*Account opening is free for Freedom Pack, with zero Annual Maintenance Charge (AMC) for 1st year & Rs. 431 from the 2nd year.

Additional Read: How to Start Share Trading

FAQs

Is it safe to trade online?

Yes. With many advanced measures of securities and authentication, it is absolutely safe to trade online. All brokerage houses now use the CDSL generated T-PIN based authentication mechanism. T-PIN is a one time user-generated PIN which once verified can be used for placing orders through the demat accounts of CDSL. So if your broker opens your account with CDSL, you can avail this facility.

How can I do trading online?

• Identify your stock broker

  The first step is to identify a stockbroker who is registered with any of the two depository participants- CDSL or NSDL.

• Open a Demat account and Trading account

  Open a Demat account and Trading account with your stockbroker. You can open a free demat account with BFSL's Freedom pack.

• Add money to your trading account

  Link Bank account with trading account and start buying and selling in the stock market.

View stock details, history, analysis and charts to help you make a good decision.

What are the benefits of online trading?

The benefits of online trading far outweigh the costs. It is a secured, online method of trading of financial securities which reduces the risk of losses and theft along with time delays. You can easily trade securities across geographical boundaries and multiply your wealth with careful research and analysis which can be supported by a robust trading system.

Online trading also allows you to experiment with various securities and trading strategies which you would have not been able to in a physical trading environment. Many complex and profitable strategies can be built with online trading in nanoseconds and even bot trading is now an acceptable method for profit generation.

Should I be experienced to start trading online?

No. You do not need to be experienced to start online trading. You can learn the steps as you apply for a demat account with a broker. Once demat and trading account are opened, you can start trading using simple instructions for delivery based trading. There are demo videos and hand-holding sessions available online.

You can also read about various types of trading strategies and the process of trading to understand how things work in online trading.

Related Products:

Disclaimer: Investments in securities market are subject to market risk, read all the related documents carefully before investing. Visit our website for other Terms & Conditions.

How to Set Up a Stock Trading Account

Source: https://www.bajajfinserv.in/insights/how-to-start-online-trading

Share this post