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Procedure: Open A Trading Account
February 06 , 2013

1) The trading account helps you buy and sell shares that are held in demat form. It's like your SIM card that enables you to use your mobile phone to talk.

2) In a trading account, if enabled, you can also trade in Derivatives (Futures and Options)

3) A trading account can be online (where you login and place orders yourself) or offline (where you give orders to your broker on phone and later give him the written confirmation)

1) Most providers offer both demat and trading accounts, but you can choose to take them from different providers if you want 

2) Trading charges on the trading account are on a per trade basis (typically 0.25% - 0.75%). The fees for DP accounts may include an opening charge, and an annual charge (of a few hundred Rupees). You can compare both these to arrive at the best package

1) In some forms, Derivatives (Futures and Options) are combined with share trading. Make sure you sign here only if you want to trade Derivatives

2) You need to give the account openingcheque and possibly another cheque that goes to your trading account. This money is available for your first trade, and is call "margin".

3) Once the forms signed and documents given, the account gets opened in a week to 10 days. Thereafter, you can begin trading

4) Once you call the sales person over, he will hand you a rather large form and a set of documentation requirements.

1) Unlike a Demat account, there are usually no maintenance charges in a trading account

2) However, you may be required to comply with regulatory requirements from time to time, failing which your account could be suspended.

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