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If you are interested in stock market trading the first thing that you need to have is a stock trading account and the DP account. Stocks are traded at the stock market through the brokers who execute your buy or sell orders and the stocks are traded through your trading account and stocks are deposited to your DP account. You can either choose to trade through the conventional offline stock trading or you can trade online but in both cases you must have the trading account. For opening a stock trading account you need to register with any of the online trading portals or you can contact a broker for opening the trading account. The service providers will take a nominal charge for opening the account and in most of the stock broker firms will charge an annual fee for maintain the trading account. You need to also submit documents that will prove your identity, residential address and of course your income details. In India you need to have the Permanent Account Number or the PAN for opening the stock trading account.
There are so many online trading portals that are offering online trading facilities to the investors. There are of course different fees that are offered by the companies and the facilities and terms and conditions also vary from one company to the other. So you need to choose the service provider diligently so that you get the best service at the best price. Here we are offering some practical tips that will help you select the best service provider when it comes to stock trading.
Reputation – While choosing the service provider for opening share trading account the first thing that you should consider is the reputation of the company in the market. You can search and read the reviews about the company on the internet, you can read about the performance of the company at the financial newspapers and magazines, you can ask your friends – do whatever but make sure you subscribe the service of the company that has a proven track record and a name in the market.
Service – Then of course you should consider the standard of service that the company is offering. That will take into consideration the quality and efficiency of the system that they use, the expertise of the staffs and the extent of service they are offering. Be sure that the company is offering trading facilities at the stock markets that you are actually interested in trading. Besides you should also enquire if the website is supporting derivative trading, IPO investment, mutual fund investment and so on. The more you get is better as you would not need to go somewhere else for these investments.
Security - The security of your personal and banking details and financial information is a matter of great concerns. Especially if you are trading online and using online fund transfer facilities you need to be extra careful. Make sure that the company implements best online security measures to protect your financial and personal data when you are trading online through their website.
Brokerage Fees – The market for online trading companies are too much competitive as there are more and more companies coming to this business. This is of course good news for the investors. You can now expect really comparative pricing for the online trading services. So while opening the online trading account you need to make sure you find the best deal that is available in the market.
Consultancy service – before opening the trading account with a certain company you should look for the consultancy and research and analysis services that are offered by the company. You can in fact keep a close watch on the daily tips that these companies offer and see who is providing the most profitable stock tips. These consultancy and stock tips are provided by the firms at free of cost and you can really benefit from them for making some profitable stock market investments.
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