Opening an online trading account is the first step to successfully beginning your stint with trading. And this step is as crucial as anything else related to online trading. Online trading is advancement to regular trading with improved speed of transactions and nonexistence of paper-based documents.

Your online trading account is managed by your investment broker and it can hold stocks, cash, securities and a number of other types of investments. If your portfolio is very diverse and hefty, the brokers may advice you to open separate online trading accounts for retirement savings, long-term stocks, a margin account, and for conducting day-trading activities. This avoids confusion.

Think before you start
Don 't dive in blindly. Before opening your account, make sure you have a cash cushion to cover unforeseen expenses, like a health emergency, sudden trip to visit a sick relative, a major car repair, or job instability.
Open your online trading account for the kind of trading you want to do. For example: if you want to buy stocks and exchange-traded funds, you 'll need a brokerage account. Check for monthly fees and maintenance charges. The prices are pretty competitive so look for a firm that offers low trading commissions.

Your checklist of all the documents you 'll need
All these documents are mandatory to open an online trading account. So make sure you have them in one folder. A trading account is a single-holder account while a DEMAT account can have a maximum of 3-party joint holders.

For a two-in-one account combo of Trading and DEMAT you need
1.  One recent passport size photograph
2.  Proof of Bank Account: Any one of the following
     a) Copy of Bank Statement
     b) Copy of first page of the Bank Pass Book
     c) A cancelled cheque (only if the account holder's   name is printed on it)
3.  Copy of Client Master towards proof of an existing DEMAT Account
4.  Proof of your Depository Participant/Broker
5.  Proof of Identity: Pan Card
6.  Proof of Address: Any one of the following may be submitted
     a) Passport copy
     b) Driving license copy
     c) Bank Pass book copy
     d) Verified copies of: Electricity bill or telephone bill in the customer 's name (not more than two months old)
     e) Leave and license agreement/agreement for sale
     f) Copy of Ration Card
In case your permanent address is different from your address of correspondence, proofs have to be submitted separately for each one.
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Opening an online trading account is an easy 5-step process
  1. Sit with your chosen broker and scout the site for 'create a new account '
  2. Provide all the relevant documentation you 've collected and complete the form
  3. Add money to your account via the bank registered with your account or via a cheque
  4. Do a scan of the various tools and options available to you on your platform
  5. Start trading!

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