Pre-requisites for opening an online equity trading account

We all know that for trading in Indian equity, we need to open trading or broking account with the NSE/BSE registered broker or sub-broker and a demat account with the DP participant registered with NSDL or CDSL. But you require following things for opening above said accounts.

1. PAN
PAN (Permanent Account Number) is now mandatory for opening broking, demat accounts and investing in mutual funds. You can obtain PAN online (FAQ) or approach your auditor or broker to get one. If you apply online it costs around Rs.65 and your auditor may charge you upward of Rs.200 for this service.
2. Email ID

Now a days all brokers and DP Participants are sending contract notes, circulars, trading tips and demat holding and transaction statements through email. Hence email id is must for opening trading A/c. You can open email ACCOUNT WITH Gmail, Aol, Yahoo, Hotmail, Rediffmail or Indiatimes. Register atleast two email IDs, one is for financial transactions and another is for personal use. My personal choice is Gmail and AOL.

  1. Bank account

Net enabled bank account is required for transfer of funds to your trading account, withdrawing funds and to receive dividends. You enquire with your prospective broker for their tie-up with banks. I personally prefer HDFC Bank ( minimum balance Rs.5000) and ICICI Bank minimum balance (Rs.10000) as most of the Indian brokers have tieup with them. Those in metros can open ICICI Bank b2b bank account with Zero balance.

  1. Address and ID Proof

You need two passport sized photographs, Copy of cancelled cheque, PAN Xerox, Xerox of passport or voter ID or Driving license or bank passbook or rent agreement or Ration card or Telephone bill or Insurance policy as ID and address proof.

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