How to open a trading account?

First of all Congratulations on Saving enough to start your investing journey.

Now a days investing in stocks is mainly done through online. In order to start buying stocks you need 1)Savings Account 2) Demat Account  and 3) Trading account

1) Savings bank account: Choose a bank which offers better internet features. Even though many banks offer this facility, private banks (such as Axis bank, ICICI, HDFC) have better features for managing money online. Try to open an account with sweep facility. Sweep account helps to earn at a Fixed Deposit rate in a Savings account without a need to opening a separate FD account. When the money is not invested in stock the money in sweep accounts earn interest at a higher rate than the regular savings account. Ok. Now you have opened the savings account with better interest rate.

2) Trading Account: Choose the trading firm which also has a physical presence near you, so that you can visit them whenever needed. Before opening account ask for the presentation on various schemes available. Some trading firms charge a lower fee  upto a certain amount or duration as a promotional offer. Try understand the fee structure and commissions and make a note of it. If you do not understand the terms ask questions and fully understand how it works. Practice the online demo by opening the guest account.

3) Demat account: Demat is the online account for keeping  for stocks. It avoids the need to have a paper version of contract for securities sent though mail. Generally Demat  is provided along with the trading account. There is a separate fee for demat(annual fee, adding and removing stocks at a nominal fee)

Fill up the form. Pay the opening fee and wait for about a week for the account to get activated. Once the account is active then start buying stocks.

Some banks are offering 3 in 1 accounts, meaning Savings, Demat and Trading.  It may be a good idea for some but for others they might prefer a separate log in for Saving and Demat. Three in one accounts have no advantage except avoiding the need to have two log ins. Axis bank, ICICI and HDFC offer 3in 1 accounts.

Now you are ready for your investing journey. Good Luck.