Key Points to Consider While Opening a Trading Account Online

If you are thinking of making a quick buck by trading in financial securities or a long term investor thinking of investing in the stock market, you will need a trading and demat account to put that process into action. Assuming, you already know which stocks, mutual funds, bonds to buy; now you need to know how you can buy those securities. For that cause both of these accounts plays an important role for you, and without anyone having either or neither of them, one cannot buy or sell stocks in the equity market. So, in order to open these two accounts, all you have to do is perform an account opening process with a stock broker by going through a 10-minute KYC process and providing certain government-certified documents.

Why Do You Need A Demat Account?

Just like you hold your money in your bank account, likewise, in a demat account you can hold the stocks you have bought from the stock market. All the securities with a unique identification number are visible in the demat account with the number of stocks you hold at a time.

Also Read: Features of Best Demat Account with Lowest Brokerage Charges in India

A demat account is linked with a trading account and when you buy or sell a share adjusted are made accordingly in both account. Process in background goes like this, transaction made during the day are recorded in the trading account and debit or credit of share is reflected into the demat account after T +1 or 2 settlement days as per the rules and regulations of trading settlement cycle.

Why do you Need a Trading Account?

A trading account provides you the platform to buy and sell securities in the stock market. This means every buying and selling-related transaction is recorded in your trading account. When you place a buy or sell order, it is recorded in your trading account and you can check the statement of your trading account anytime. However, your broker will send you a copy of the statement every month. So, let's find out what factors you should consider while opening a trading account in India.

Also Read: Trading Account: Definition, Eligibility Criteria and Features

7 Points to Consider Before Opening a Trading Account:#1 Account Opening Charges & Fees

Everyone wants to save themselves from paying out money for thing that can be settled by sitting on the table. You can see many ads offering free trading accounts or when you ask to open a trading account with a broker, you can be offered freely with the demat account or both accounts can be opened freely.

But believe blindly in such ads or freebies, as there could be some hidden charges or the broker might ask you to pay the annual maintenance charges or levy the charges on every transaction. You need to verify and confirm such charges before opening the trading account. If any charges or fees are levied be ready to pay or make it clear with your broker if they are going to be charged later on.

#2 The User-interface of the Trading Account

As you know trading account is used for buying and selling stocks. And you can check your trading transactions anytime as per your ease. So, check the user interface of the trading account, whether is it user-friendly or not, do you face any kind of technical issue while checking for the transactions etc.

Similarly, there are many things like there should be options to customize the view of checking the transactions and various other details like stock price, market data, and your linked demat account status and bank account etc. Everything should be simple to use and easy to access making it easier for the end-users, even people who are not tech-savvy or not habitual of such things.

#3 Trading Platform Features for Trading Account

In the age of digitalization, you can have the aces to your trading and demat account on your computer, laptop or smartphone. You can use your trading account yourself to buy and sell the shares directly from the market. Hence, apart from basic features what are the additional features your trading platform is providing while using the trading account?

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

There should be market data with live feeds or stock prices and market-related other information. You can check the technical charts from popular charting software like Trading View, the latest bidding quotes and financial data or the company.

Apart from there are many things you need while trading in the stock market, and all such data you can get in your trading account. These keys are important to analyze the market or individual stocks and make quick decisions about buying and selling.

#4 Restrictions in Number of Transactions

Just like having the additional features, there might be some restrictions on using the trading account. Hence, while opening the trading account with your broker check if there is any limit or buying or selling and the number or quantity of transactions in your trading account.

Though, some brokers offer loans on shares, while some offer pledging facilities or there are such restrictions on your trading account, you all need to inquire about such things.

However, most brokers don't have such restrictions, except, when any action is taken by the stock exchange or regulatory authority (SEBI) in India. Apart from that also check or get confirmed how much margin is offered by your broker for intraday trading or short-term trading. Do you also trade in the derivatives (future & options) market or do you need to pay any extra charges for that etc?

#5 Additional Facilities Offered by the Broker

While opening a trading account with any broker, you will get most of the common facilities while buying and selling the stocks. However, some brokers offer additional benefits to their customers through their trading accounts. You need to check and compare the trading account features with other brokers and when you find which one is giving the maximum features at the lowest charges.

Apart from margin trading brokers also provide the facility to access the research reports and recommendations for buying and selling stocks. Moreover, these should be hassle-free options to buy or sell stocks from all the popular stock exchanges with their real-time data. And most importantly, your broker is asking for any additional charges for accessing such features.

#6 Security and Safety of the Transactions

This is one of the most important factors you need to consider or thoroughly check before opening a trading account with your broker. Yes, the safety of your trading account and the security of your transactions are very important to keep your investment secured and protected from unauthorized access.

Also Read: Types of Risks Associated with Investing in the Stock Market

In the age of excessive use of digitalization, cybercrimes are also on high levels. Hence, you also need to be very careful about your digital accounts. So, please check the security levels of your trading account, like the account login verification process, accessibility at your broker end and the trading platform in which you will use the trading account is secured and protected from such cyber threats. Make sure security layers while opening the online trading account for a safe trading experience.

#7 Customer Support Service for Help

Last but not least, while using any kind of digital service also check the customer support services offered by the company. Hence, while opening a trading account also check the feedbacks of the people and integrated facility of availing the customer support service whenever you needed.

Is it available only through chatbots, or is also available through human conversation or you can visit the nearest branch of offices of the company to resolve your trading-related queries?

A customer support service in the stock market is very important and getting a quick and effective response to resolve your queries you can ace while trading in the stock market. At least your broker is providing the facility to call and get immediate online assistance to listen and understand your problem. Any kind of delay in key truncations can cost you in terms of losing money in the stock market. Hence, while opening a trading account also check about the customer support service.

How to Open a Trading Account Online in India?

In India, it is very simple to open a trading account if you have the required supportive document to verify your ID and residence proof with the KYC procedure followed by the company. Just find any one of the best discount brokers in India, and apply online to open a trading account for you.

Also Read: Trading Account: Types, How to Open and Documents Required

You will get a quick response and get the online platform to fill in the required details and submit a copy of all the required documents and photographs. Once your identity and documents are verified you will have the trading account ready for you to use for the trading in stock market.

Where to Open the Trading Account in India?

In India, only registered brokers are allowed to open the trading account. So, find a discount broker or full-fledged broker like Moneysukh and apply to open a trading account online. You can also visit the nearest branch office to open a trading account in your city. However, after opening the trading account you will have access to the same from anywhere through the best online trading platform provided by your broker that will be also connected with your demat account.

Moneysukh is one the best discount brokers in India providing the one-stop solution for trading and investing facility in equity market, commodities and currency market. Anyone looking to trade or invest in the stock market can apply here to open a trading account and demat account online.

Also Read: Discount Broker vs Full Service Broker: Difference & Which is Best?

You will get here the advantage of the best online trading app with the facility to trade unlimited and features like updated market data and technical indicators in TradingView charts with stock, industry and economy related research reports accessibility. Moreover, you will also get the advantage of trading with advanced algorithms and trading software with fast transactions and settlement facilities to make your trading experience hassle-free.

Also Read: How to Use Supertrend Indicator in TradingView: Settings & Strategy

"Moneysukh" is a well-known and experienced brokerage firm with its corporate office in New Delhi. We are Member of Nse, Bse, Ncdex, Mcx, and DP with Nsdl and Cdsl.