Open Free Trading Account Online | Motilal Oswal

Opening a Trading Account

The first step for stock market trading is to open a Demat Account and a Trading Account. Once you open a Demat Account online, you can hold all your stocks and securities here. Be it bonds, Exchange-Traded Funds (ETFs), mutual fund units, and more, every asset or security is stored here in the digital format. Now when you want to purchase and sell these securities, you can place a purchase or sell order only through your online Trading Account. So essentially you need to have a Trading Account to transact in the stock market. Any profit or loss from the transactions is accordingly credited or debited from a linked bank account.

The concept of an online Demat Account emerged with the government introducing dematerialising of share certificates. Subsequently, the open outcry system was replaced with the streamlined process of transacting through an online Trading Account. To facilitate the process of dematerialising shares and digital transactions, the National Securities Depository Limited (NSDL)was established in 1996. The process of digitising the Trading Account received a boost with the establishment of a second depository, the Central Depository Services Ltd (CDSL) in 1999. Both national depositories played a key role in developing the requisite infrastructure for a world-class Demat and Trading Account in the Indian capital market

At present, you can open the best Trading Account online effortlessly, with a reputed broker such as Motilal Oswal, and start trading with a few clicks.

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What is a Trading Account?

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A Trading Account can be defined as the account that allows you to purchase or sell stocks and securities across stock markets in the country. The key advantage of an online Trading Account is the convenience and ease of carrying transactions. You can transact online from the comfort of your home or office, or even while on the go. Besides, you don’t need to worry about any safety issues as all your transactions are encrypted and secure.

Here, you must remember that you cannot directly approach a depository, either CSDL or NSDL, to open a Trading Account online. You can only open a Trading Account through a Depository Participant (DP), who is a member of a depository. Typically, stockbroking firms in India are registered either with the CSDL or NSDL. But Motilal Oswal is registered both with CSDL and NSDL and you have the option of choosing your preferred depository while opening your online Trading Account.

Having an Online Trading Account in India

Having an online Trading Account is a prerequisite for stock market trading. Once you open a Trading Account, you will receive a unique id, which will be compulsorily required for each transaction. Along with the unique id, your Trading Account is also protected via a password. To understand the functioning of an online Trading Account, let’s take an example. Suppose you want to buy 100 shares of ABC company, you will first have to log into your Trading Account by providing your password. You then need to make a purchase order. The stockbroking firm or the DP will then carry the transaction on your behalf, via your unique id. Once the order is executed and settled in the stock exchange, the number of shares will be credited to your Demat Account and the purchase price will be deducted from your bank account. Similarly, for a sale order made through your Trading Account, the number of shares will be deducted from your Demat Account and the amount credited in your bank account.

Why Do You Need a Trading Account?

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A Trading Account is a crucial link between your Demat Account and bank account. An online Trading Account can provide you with multiple advantages. Here’s a look

  • Single-point access to multiple stock exchanges:
    An online Trading Account provides you access to multiple stock exchanges, such as the Bombay Stock Exchange(BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX). So be it trading in stocks, commodities, derivatives, futures and options, and so on, you can use your online Trading Account to trade seamlessly.
  • Access to stock market updates and information:
    if you open an online Trading Account with a reliable stockbroker, you also receive reliable market news, reports and updates, which can be used to make an informed investment decision.
  • Flexibility in making investments:
    You can access your Trading Account through a browser or mobile-based apps. This can provide you with the flexibility of trading at your convenience, from anywhere.
  • Access to stock market alerts:
    An online Trading Account can help you receive customised alerts through SMS or email.
  • Access to customer support:
    In case you are facing any issues with your online Trading Account, you have the option of contacting the customer care team.
  • Security of transactions:
    An online Trading Accounts keeps your financial transactions safe and secure, thus protecting you from online scams and cyber frauds.

The Trading Account Opening Process

Wondering about the process of opening an online Trading Account? Here’s a look at the steps involved:

  • Select the stockbroking firm:
    As part of the first step, you need to select a reliable and trusted stockbroker. While comparing different stockbroking companies, you must compare the brokerage rates and services being offered. You can select from a discount broker, providing online services at zero/minimal commission or full-service brokers providing a wide range of services, both online and offline. Along with checking the fees and charges of each stockbroker, you must also check whether you are eligible for a discount. At times, stockbrokers provide discounts when you are shifting your existing Trading Account. Also, you must look for the services being offered. You can check whether you are getting access to cutting-edge trading platforms, mobile-based trading apps, access to research advisory and other investment-related services.
  • Select your Demat Account type:
    The next step is to choose the type of Demat Account. Here, you must consider your overall investment objectives. For instance, if you are looking for long-term returns, you can select the full-service Trading Account. Both beginners and seasoned investors can opt for this type of Trading Account.
  • Fill the application form:
    Now you are required to fill the online application form. As a new customer, you also need to complete the mandatory KYC process by submitting proof of your identity and address. You will be required to sign additional forms for facilities, such as margin privileges.
  • Make a deposit in the Trading Account:
    At this step of opening your online Trading Account, you will be required to make a deposit. You can opt to deposit the minimum amount for your account as well as for categories, such as taxable account, retirement account and margin account.
  • Get Trading Account details:
    Once your application form and the documents are verified, you will receive your unique Trading Account number.
  • Start trading
    Congratulations! You have successfully opened your Trading Account. Log in to your account and make a buy or sell order.

Selecting the Best Trading Account in India

To select the best Trading Account in India, you must look at the services provided by a stockbroking firm. You can select from two types of Trading Accounts in the country:

Full-service Trading Account

Along with selling and purchasing stocks and securities, this Trading Account will provide a wide array of services such as financial advisory, stock tips, market research and so on. These stock broking firms have a wide network of offices across the country and provide both offline and online services. Remember, a full-service Trading Account can provide integrated equity and derivative Trading Account, which can allow seamless stock market trading, futures and options trading, and more.

Discount Trading Account

You can choose a discount Trading Account to transact at low or minimal brokerage fees and charges. However, this type is account does not provide any additional services, including those pertaining to advisory and research.

How to Open a Trading Account with Motilal Oswal?

Did you know that you can open a Trading Account with Motilal Oswal online with minimal documentation? Yes, to open a Trading Account online, you are just required to follow the easy and simple steps given below:


Visit the Motilal Oswal official website.


Fill in and submit the online application form.


submission of required documents which includes Identity Proof, Address Proof & PAN Card Copy.


Your form and documents will now be verified.


Post verification, you have to sign a copy of the agreement.


You will now receive your unique Trading Account number.


You can now start stock market trading with Motilal Oswal.

Benefits of Motilal Oswal Trading Account

Opening an online Trading Account with Motilal Oswal can provide you with a wide range of advantages. Here’s a look:

  • Hassle-free paperless application process:
    You are not required to make any branch visits, nor do you need to undergo the process of cumbersome documentation. Just submit the online form along with the requisite documents. Post-verification, you will receive your Trading Account details.
  • 2-in-1 account:
    A key highlight of opening an online Trading Account with Motilal Oswal is that you don’t need to open separate Demat and Trading Accounts. Both the accounts can be opened via a single application.
  • Reasonable brokerage fees and charges:
    Motilal Oswal provides the most competitive and reasonable brokerage fees and transaction charges. Besides, there are no hidden charges on any transaction.
  • Research expertise:
    Motilal Oswal can help you make informed investment decisions by providing comprehensive and up-to-date market reports. The stockbroking entity has research expertise of more than 30 years.
  • Cutting-edge trading platform and mobile app:
    Opening the best Trading Account with Motilal Oswal can get you access to its state-of-the-art trading platform, the ‘MO Trader Platform’. Besides, you can receive real-time information and trade on the go with the ‘MO Investor App’. The trading and investment platform of this stockbroking form can also provide you with various facilities, such and the complete portfolio view across all asset classes, in-depth stock analysis and recommendations, and more.
  • Options to invest in various asset classes:
    Along with stock market trading, you can opt for futures & options trading, currency trading, commodity trading etc. You can also invest in bonds and mutual funds. Opening an online Trading Account with Motilal Oswal can thus help you diversify your portfolio by investing in different asset classes.
  • Personal advisory services:
    As a customer of Motilal Oswal, you receive customised advisory services. This can help you to make viable investment decisions.

Features of Trading Account

Here’s a look at the features of an online Trading Account:

  • Lightning-fast transactions:
    An online Trading Account can help you make fast and quick transactions. You can make a purchase or sell order within minutes.
  • Flexibility to invest:
    A Trading Account can help you make investments in equities, commodities, futures, currencies, bonds etc.
  • Keep track of your transactions:
    An online Trading Account can help you keep track of all purchases and sales in a single place.
  • Market information:
    Using the web browser or the mobile-based app, you can monitor the performance of stocks and get access to real-time market information.
  • Helps make sound investment decisions:
    An online Trading Account can help you review your investment decisions. By getting access to markets reports, charts, analysis and personalised financial advisory services, you can achieve your financial goals faster.

Difference Between Trading and Demat Account

To know the difference between a Trading Account and a Demat Account, you can refer to the table given below:

Demat AccountTrading Account
FunctionA Demat Account is a storage account and holds all your assets electronically or in a dematerialised form. A Trading Account helps you carry stock market transactions. To put it simply, you can purchase and sells stocks and securities using this account.
NatureA Demat Account is similar to a savings bank account. For each sale and purchase, the number of stocks is correspondingly credited or debited.A Trading Account is similar to a current bank account, where you can continuously place sale and purchase orders.
Role A Demat Account keeps your dematerialised assets safely.A Trading Account ensures safe, secure and quick transactions.
ChargesYou can be required to pay Annual Maintenance Charges (AMC) on a Demat Account. AMC charges in Motilal Oswal is FREE for 1st Year.You are required to pay brokerage fees and other transaction charges.
Account numberYou receive a unique Demat number to identify your account.You receive a unique identification number as the Trading Account number.