Starting to trade stocks online in the stock market has become more accessible than ever, thanks to digital platforms and user-friendly trading apps. Whether you’re a beginner or looking to sharpen your investment skills, understanding the right steps from opening a demat and trading account to analysing market trends is essential. This guide will walk you through the basic process of how to start trading stocks online with confidence.
What is a Trading Account?
A trading account is an account from which you can execute trades in stocks, bonds, options, commodities etc. It works as a link between a Demat account and your bank account from which you can place orders in the market. The amount is deducted from your bank account and the purchased security is stored in your demat account.
How to Open a Trading Account Online?
Opening a trading account online is quick and hassle-free. It allows you to start investing in stocks and other securities with just a few simple steps.
Step 1: Choose a Stock Broker: Select a SEBI-registered broker offering online trading services.
Step 2: Fill Out the Application Form: Visit the broker’s website and complete the online account opening form.
Step 3: Upload KYC Documents: Submit PAN card, Aadhaar, bank proof and a passport-size photo.
Step 4: Complete eKYC & In-Person Verification (IPV): Verify your identity via video call or selfie, as per broker’s process.
Step 5: E-Sign the Documents: Use Aadhaar-based OTP for digital signature.
Step 6: Account Activation: Once verified your trading account is activated within 24-48 hours.
Steps to Start Online Trading in India
To start online trading for beginners you need to follow these steps:
Step 1: Choose an Online Broker
To start with you need to select an ideal online broker. Many brokerage platforms are available in India, each offering different services such as stocks and commodity trading, futures and options, margin trading accounts, etc.
You must select a broker with an easy-to-use interface and a good reputation in the market, compare brokerage fees with all the platforms, check if they have reliable customer support and proceed.
Step 2: Open Demat Account and Trading Account
Once you finalise a broker, the next step is to open a demat account with them. The primary function of a demat account is to hold your purchased securities electronically. A trading account allows you to buy and sell those securities.
To open a trading account with your broker, you must complete the Know Your Customer (KYC) process and submit documents such as your PAN card, address proof and identity card. After that you apply for the broker online or offline. Once approved your demat account will be opened.
