Trading is probably the most lucrative option in the stock market. Those who know how to deal in the market and which shares one can have a profit-making opportunity can earn a hefty amount in a few hours. However, it is not that easy as well. One needs to be well-versed with market trends, and have information about various companies and their market cap as well as other relevant information that can lead to an increase or decrease in the value of their shares in the market.
The primary condition here is one needs to have a trading account where he can trade-in. As per the SEBI norms, one can trade in only a trading account, and therefore one has to get a trading account opened with any of the brokers available in the local market. One who is not well aware of the local market can search for the best stock brokers in India and see if any of them have a branch in his city or area. One can walk into the branch and ask the concerned authority to help in opening a trading account. Here one must note that one also needs to have a demat account only then can he offer a trading account. Hence if one does not have a demat account, he needs to get the same opened first. The brokers have a printed form where numerous terms and conditions are mentioned which one needs to fill and also provide the required documents for opening an account.
The documents and process for opening an account:
For opening an account, there are a few documents required as per the laws of the market regulator as well as the government. Here the foremost important document required is the ID proof of the person which can be any document validated by the government. Aadhar card, PAN card, Passport and Driver’s License are some of the valid documents for identity proof. There must be address proof as well which includes the passport, driver’s license, Electricity bills, and Aadhar card are known as proof for the address. Adding to these documents, one also needs to 2 photographs and also provide a cheque of brokerage and margin money.On the basis of a margin money cheque, only the service provider can open the credit limit and hence one can start trading.
The choice of any of these accounts depends on the profile of the client. One who is free during market hours and has a computer or a smartphone with active internet can go for this account. In case one is not aware of how to trade in the live market, it is better to go for the offline account where the trader can be much helpful. The rate of brokerage in this type of account is a little higher compared to the same in the online account. The offline account holder can get the services from a bolt operator of the service provider who can carry out the trades as per the instructions received from the client.
