A Complete Guide on How to Open Trading Account
You cannot trade in the stock market with a Demat account. Yes, a Demat account merely stores your assets. The actual buying and selling of assets (shares in this case) takes place in a trading account. In essence, Demat, trading, and bank account are all interlinked and crucial for you to execute a successful trade. When you buy shares, money is first transferred from your bank account to your trading account. Once the transaction goes through, the shares are credited to your Demat account. This is why opening a trading account is a must if you want to trade in the stock market.
However, before you open a trading account, you must assess factors such as speed and reliability of trading platforms, brokerage and annual maintenance fees and the broker’s credibility. m.Stock stands tall on all these parameters with a legacy of serving millions of customers in 15+ countries for over 25 years. Our seamless trading platforms are quick and easy to use with best-in-class tools and features alongside bank-grade safety for your investments.
Let’s look at the step-by-step process and documents required to open a trading account with m.Stock
Read Also: Types of Trading Account In India
Benefits of Opening Trading Account
Opening an m.stock trading account is as easy as pie and it has a lot of benefits too, such as:
Zero brokerage:
You don’t have to worry about trade sizes or volumes because, with zero brokerage, you won’t be charged any fees no matter how big or small your trades are. This means that more money stays in your pocket, and you reach break-even faster.
Increased profit:
Without charging for brokerage services, this allows you to take home most of what you make which improves overall profitability.
No subscription fees:
Get features like Pay Later (MTF) for free without paying subscription charges. Zero surprises, only direct trading.
Access to major exchanges:
An m.Stock demat account gives you access to all major Indian stock exchanges thereby providing enough opportunity for investment portfolio diversification.
Freedom from sales pressure:
You do not have to deal with endless calls from relationship managers who keep pushing you into increasing your trading volume. With a demat account, trade at your own pace without any external pressure.
Seamless experience:
Opening and managing an account with no brokerages is quick & easy as well as hassle-free. Platforms powered by m.stock ensure a smooth account opening process coupled with virtual onboarding hence you can start within minutes.
Quick fund transfer:
Move funds in and out quickly ensuring liquidity when needed.
Documents Required to Open Trading Account with m.Stock
It’s super easy to get started and open a trading account online with m.Stock. Just follow simple steps and have these documents ready:
Identity proof:
A PAN card is compulsory.
Address proof:
Choose between an Aadhaar card, recent Electricity Bill, Passport, Voter’s ID, Driver’s Licence or Bank Passbook.
Income proof:
Submit the latest Salary Slip / Income Tax Return / Bank statement for the last 6 months.
Apart from the above-mentioned documents, there may be additional documents required. This depends on whether you are a KRA-compliant or non-KRA-compliant client. A KRA-compliant client is a person who already owns another demat account. In this case, you need to submit fewer documents. However, if you are are non-KRA client, then some additional documents that you need to submit may include:
A photograph,
A signature on white paper, and
A cancelled cheque with IFSC and account number.
Furthermore, if you plan to trade in the derivatives market, then submitting income proof becomes a mandatory requirement for you.
Steps to Open Trading Account with m.Stock
The question that most beginners ask is: how to open a trading account? Fortunately, this process has been simplified and made more accessible than ever before. Here is a step-by-step guide on how to set up an m.Stock trading account:
Step 1: Go to the m.Stock Website
Begin by visiting www.mstock.com using any web browser of your choice. Once there, you will be required to enter your 10-digit mobile number. This mobile number will serve as your main communication point for the trading account.
Step 2: Mobile Number Verification
After entering the mobile number, a One Time Password (OTP) will be sent via SMS to the given number. Enter this OTP in order to verify the mobile number thus confirming its authenticity.
Step 3: Complete E-KYC and Upload Documents
Then provide personal information such as full name, residential address, Permanent Account Number (PAN), Aadhaar card number and date of birth. These details are important for Know Your Customer (KYC) compliance.
Step 4: Link Bank Account for Fund Transfers
To facilitate a seamless transfer of funds between your trading account and bank account(s), you must link at least one bank account with your trading account. With this, transactions can be done fast and conveniently, allowing you to take advantage of market opportunities without wasting time.
Step 5: Make Online Payment
Once all required information and documents have been provided, proceed with making online payment. At this point, the verification and validation process take place. Once done, an email confirmation containing login credentials should be expected within 24 hours.
By following these steps, you can successfully open your trading account with m.stock, thereby setting the stage for venturing into a trading world full of dynamism.
Read Also: How to trade online using a Trading account?
Read Also: Importance of Trading Account and Why Do You Need it
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FAQ
Is it safe to open a trading account?
Yes, it is safe to open a trading account if you select an established stockbroker regulated by SEBI. Make sure they provide a stable trading platform with seamless functionality and strong built-in protection against threats. Moreover, personal safety precautions should also be taken such as using robust passwords and enabling two-factor authentication for the security of your account.
Can I open a trading account without a broker?
No, you usually require a broker to have a trading account. They act as intermediaries between buyers and sellers in financial markets. This means that brokers provide a platform through which you can buy or sell financial securities like shares, bonds, derivatives, etc.
Difference between trading & demat accounts?
A trading account is simply used for buying and selling instruments such as equity shares, options, and futures. On the other hand, demat accounts are meant for holding these securities electronically thereby doing away with physical share certificates altogether. In brief, when you just want to engage in trading activities, open a trading account but if all you want is to buy and hold shares, then you need to open a DEMAT account.
Are trading accounts free?
Trading accounts come with different charges depending on where or which platform or brokerage firm you decide to use. Some of the charges include account opening fees, annual maintenance charges, brokerage, etc. Some may offer zero fee at sign-up while others might ask for brokerage on each transaction. Always read terms & conditions well before opening a trading account.