In the year 2000, the share markets have become electronic. This means trading is conducted through online. If you are interested to invest in share market, so you need a demat and a trading account to invest in the stock market. Trading and Demat account is opened with a stockbroker.
Using this account, you can buy or sell orders either online or phone, which will automatically be directed to the exchange through the stockbroker.
HOW TO OPEN A TRADING ACCOUNT
- First, select the stockbroker. Please check your broker is good and will take your orders in a timely manner. Remember, time is very important in the stock market. Even a few minutes can change the market price of the share. For this reason, ensure that you select a good broker.
- Compare brokerage rates. and choose the best for you.
- Brokerage firm inquires about the trading account opening procedure. Often, the firm would send a executive to your home with the account opening form and the Know Your Client (KYC) form.
- Fill these forms up. You can attach two documents that serve as proof of your identity and address.
- Once processed, you will be given your trading accounts details, you will now be able to conduct trades in the stock market
You now know about how stock markets works, how to invest in share market, demat and trading accounts.