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How to Open an Online Share Trading Account?

If you wish to trade or invest in the stock market, then opening a share trading account is a must. Previously, the process of buying and selling of shares was quite rigid. Shares were held in physical form and everything was manually noted in the company’s record book. But as time passed, everything transformed into a digital process. Now you can buy and sell shares in a hassle-free manner and trade intraday which wasn’t possible earlier. This drastic transformation of online process of buying and selling shares is called online share trading.

As we know by now, to trade online you need an online share trading account. And to open this account, you need to get in touch with a depository participant which is registered with depositories – National Securities Depository Limited (NSDL) and Central Depository Services Ltd (CDSL).

If you are wondering which is the best depository participant to open a demat account with then, don’t worry. Just open a Demat account with Samco!

Samco is India’s best equity stock broker awarded by CNBC Awaaz which gives you access to a 3-in-1 investment account - online share trading account, a Demat account and a mutual fund investing account.

But I know by now you might be wondering…what all documents do you need to open a trading account? Is it a rigid process? How much time will it take? Don’t worry. We will find answers to all of these questions in this article.

Let’s begin.

In this article we cover:

  • » Documents required to open an online share trading account as an individual

  • » Documents required to open an online share trading account as non individuals.

  • » Steps to open an online share trading account for an individual

  • » FAQs

Documents Required to Open an Online Share Trading Account for an Individual

Here is a list of documents you need to submit to open an online share trading account as an individual.

  • Permanent Account Number (PAN) Card
  • Proof of Address (You can submit any one of these documents - driving license, Aadhaar Card, recent electricity or telephone bill, Voter ID card or rent agreement)
  • Bank proof (cancelled check if you want to trade only in equities. Latest six months’ bank account statement or Income tax return along with a cancelled cheque if you wish to trade in F&O segment)

Steps to open an online share trading account

India is stomping unrestrained towards a cashless economy. You may be wondering how to open a trading account in this transformed digital India where there is a fervent push for more digital transactions as they are fast, secure, cost-efficient, and require limited man power. The answer to your question- how to open a trading account online? is also the catch-all term digital. Yes, you can now open an online share trading account in less than 15 minutes and that too in a hassle free way.

Gone are the days when signing on Demat account opening papers seemed like a never-ending process. You were overwhelmed with fatigue making never-ending rounds to the office of the broking houses to open an account. Not just that, you had to carry various photocopies of your documents.

Now you can open an online trading account with Samco Securities at the convenience of your home, and the account opening process hardly takes 15 minutes. Now you don’t need to harbour any anxieties about how to open an online trading account. We assure you that the entire process of opening a trading account with Samco Securities is seamless, straightforward and simple. Let us look at the step by step guide on how to open a share trading account online.

Steps for Opening an Online Share Trading Account

Step to open an online share trading account

1. Fill out your KYC details

Firstly, click here to open the registration form. Input your name, email and mobile number. Fill out your KYC details like PAN number, income and occupation details, address, email ID and mobile number, bank account number and nomination details.

2. Select the segments

Select the choice of segments that you’d like to trade in – Equities, Equity derivatives, Currency derivative, Commodity derivatives.

3. Upload your documents

Upload the necessary KYC documents for verification. The documents to be uploaded shall depend on the segments selected in Step 2. In case derivative segments are not selected, proof of income shall not be required to be submitted.

4. Sign your application

Sign your application digitally using your Aadhaar. Once you complete the first three steps, you shall be redirected to the UIDAI Aadhaar portal. Soon, you shall receive an OTP on your mobile and email linked to your Aadhaar. Correctly entering the OTP will digitally sign your application.

Post successful completion of the above steps, your trading account will be opened and you can start trading with Samco, the best stock broker in India.

Now that you know how to open an online share trading account, learn about the best online share trading platform in India.

If you have further doubts, you can also check out our video with a detailed step-by-step guide on how to open an online share trading account.

Check out this Step by Step Video on How to Open an Online Share Trading Account


Documents Required for Opening an Online Share Trading Account for Non Individual Investors

Hindu Undivided Family (HUF) – Trading account requirements

  • PAN of HUF
  • Latest Bank pass-book or bank statement of the HUF
  • KYC Details of the Karta of the HUF – PAN as Proof of identity, Proof of Address, Photograph
  • In case, derivatives segment needs to be activated for HUF - 6 months bank statement or Latest ITR Copy of HUF

Important Points to note:

  • Signature of all coparceners shall be required on POA page.
  • Signature of Karta shall be required on all pages of the account opening form and across photograph on form.

A HUF trading account cannot be opened online and a physical application needs to be submitted. Download the physical share trading account opening form for an HUF Account from https://www.samco.in/samco-resources

Partnership Firm – Trading account requirements

  • Comprehensive financial statements for Firm for past 2 years comprising of balance sheet, profit and loss statement and Income tax returns.
  • For Registered Firms – Certificate of registration
  • Self-Certified copy of Partnership deed
  • List of authorised signatories along with specimen signatures of letterhead of the partnership firm.
  • KYC documents of all partners – PAN Card, Proof of address, photographs.
  • Bank Proof of Partnership Firm – Statement should be in the name of the firm

Important Points to note:

  • Signature of all partners shall be required on POA page.
  • Signature of all authorised signatories shall be required on all pages of the account opening form and across photograph on form.

A Partnership firms online trading account cannot be opened online and a physical application needs to be submitted. Download the physical account online trading account opening form for a partnership firm from https://www.samco.in/samco-resources

Companies – Trading account requirements

  • Comprehensive financial statements for the Company for past 2 years comprising of balance sheet, profit and loss statement and Income tax returns.
  • Certified copy of latest shareholding pattern of the company including details of ultimate beneficial owner (UBO), duly certified by the company secretary or whole time director or managing director.
  • KYC documents of whole time directors (at least 2 directors) – PAN Card, Proof of address, photographs.
  • KYC documents of promoters and ultimate beneficial owners – PAN Card, Proof of address, photographs.
  • Certificate of incorporation
  • Memorandum and Articles of Association
  • List of authorised signatories along with specimen signatures of letterhead of the Company
  • Certified copy of Board Resolution enabling investment in securities markets and authorising signatories to operate the account
  • Latest Bank statement in the name of the company

Important Points to note:

  • Signature of all authorised signatories shall be required on all pages of the account opening form and across photograph on form

A Companies’ online trading account cannot be opened digitally and a physical application needs to be submitted. Download the physical account trading account opening form for a company from https://www.samco.in/samco-resources

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By Deepika KhudeDeepika Khude
The author is a Certified Financial Planner (CFP) with 5 years experience in Investment Advisory and Financial Planning. Her strength lies in simplifying complex financial concepts with real life stories and analogies. Her goal is to make common retail investors financially smart and independent., Samco.in | Last Updated: Jun 21, 2022

Frequently Asked Questions on How to open an online share trading account?

Q
Can I open an online share trading account without a PAN Card?
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A
No, you cannot open an online share trading account without a PAN Card. This is a mandatory SEBI requirement. In case you do not have a PAN, you must first apply for a PAN Card and then apply for opening a Trading and Demat account.
Q
Why do I need to submit my bank details for opening an online share trading account?
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A
It is mandatory to submit your bank account for opening an online trading account since all receipts and payments to your trading account shall be carried out only with your registered bank account. Also SEBI regulations mandate that these fund transfers can only be made from a registered bank account of the user. Even an unregistered bank account that is not linked to the trading account (even though it may belong to the same account holder) cannot be used for these fund transfers.
Q
Do you need to open an account with a specific bank to open a demat account?
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A
Generally, every depository has a list of banks available with them. So, banks which have been merged with some other bank or any other such issue, then that bank won’t be there in the list. You can simply get in touch with your account opening executive and they will assist you with your query.
Q
If I already have another trading account from before with another broker, do I still need to submit all documents for opening a trading account?
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A
If you have another existing online trading account and your existing stock broker has updated your information on the KRA registry (offered by CDSL or NSDL), then you shall be classified as a KRA registered investor. In such cases, you need not submit your PAN, proof of address and photo for opening the account. You shall only need to submit your bank details and income proof in such a case.
Q
What if my Aadhaar is not linked to my mobile? Can I still open a trading account online?
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A
In case your Aadhaar is not linked to your mobile or email, then you shall not be able to complete an Aadhaar E-sign. However, you will still be able to digitally sign your application with e-mudra process. After digitally signing your application, you shall be required to collect a single page acknowledgement and then your account shall be processed.
Q
Can Non Individual entities open an online trading account?
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A
No, non-individual entities cannot open an online share trading account and they shall be required to open an account by submitting a physical form. You can download a physical form from https://www.samco.in/samco-resources
Q
What happens after I complete the application and sign the online share trading account opening form?
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A
After your application is completed, the same shall be verified by Samco’s account processing teams and once your application is verified, you shall receive a welcome kit with your account credentials. You shall also receive instructions on how to access your account and initiate transactions. In case you do not receive the same within 48-72 hours of opening the account, please raise a support ticket at www.samco.in/support and we shall get it sorted.
Q
Is it compulsory to open a Samco Demat account along with an online trading account?
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A
It is compulsory to link each trading account with at least one Demat account held by the individual. For operational efficiencies, it is recommended that a Samco Demat account should be opened along with an online trading account.