One should keep in mind the necessity of a bank account, without which one can't open a Trading Account. Apart from a bank account, there are certain steps one needs to follow, these are given below:
- FILL UP THE APPLICATION FORM: After getting registered with a stock broker, the investor needs to fill up an application form provided by the stock broker wherein he needs to provide all the details required for the opening up of a Trading Account.
- FILL UP THE KYC FORM: Apart from the application form, the investor also needs to fill up a KYC form, i.e., Know Your Client form wherein he needs to provide his personal details such as Name, Gender, Mobile Number, City, State, etc. along with his bank details. Filling up the KYC form is very simple in fact.
- ATTACH REQUIRED DOCUMENTS: Once both the application and KYC forms are filled up, they need to be submitted along with certain documents which act as Proof of Identity and Proof of Residence of the investor. These documents need to be verified first to check the authenticity of and genuineness of the investor.
- VERIFICATION OF DOCUMENTS: Verification of documents is necessary to check the authenticity and genuineness of an investor. The verification process is done either personally or on the phone. Either of the verification process is simple and hassle free. This is the last step in setting up of the account.
- THE ACCOUNT IS CREATED NOW: The verification process is the last step, the completion of which leads to an Acknowledgement being provided by the stock broker to the investor. Along with the Acknowledgement are the Trading Account details, among these details the most important one is the Trading Account Unique ID without which trade isn't possible.
Once the Trading Account Unique ID is received, the investor can start trading. He also needs to link his Trading Account with his Demat Account in order to store all the sale proceeds from the trade he does online.