Share Market

The first step to trade online is to open an online trading account, which is also called ‘Demat Account’. It is one of the most important and essential step for trading online. For going forward, an investor needs a broker who has a good reputation in market, and who helps the investor to open an account conveniently. Online trade account makes trading easy and suitable among the traders for easy transaction.

APPLICATION FORM

When an investor has decided on which online broker he/she has to open their trading account, the thing you need is online application form. These forms are available in the banks or the firms dealing with the online trading.

Whereas, sometimes you also need a printed version of online application form from the internet and have to send a hard copy to the broker, to make it confirm. It can easily available on internet online trading site. You can fill the form and the firm themselves will contact you.

The documentation, one require to open an online trading account may vary according to your reputation with the institution. Along with the documentation and form, the photograph of the applicant, the proof of identity/residence/date of birth is also required. You just have to deposit the photocopies of the documents, whereas original is only needed for verification.

BROKER FEES

The next step is paying the fees to the broker. When you open an online trading account, some online brokers will charge you an introductory new member fee. They also offer you very attractive ad genuine joining promotions. But, it is advisable for the investor to not depend his/her whole decision on whether to open an online trading account on this phase alone. Broker fees should only be paid, if he is genuine and holds a good reputation in market.

JOINING FEES

Another step, while opening a trading account is how to deposit your money with the broker for joining. In some cases you can make your deposit via credit card, in others you’ll need to make a physical payment into a bank account. Once you have completed the online application form, and deposited your money, you can start with your online trading as soon as possible.

Opening an online trading account is the major step and an entry for the investor/trader to join the trading online. They only have to know the procedure and the standing of the firm before opening an online trading account.