Eligibility criteria to open an online trading account

So you’ve decided to start investing in the Stock Market - Congratulations! This is the start of an exciting journey. The next step in this journey is to open an online Trading account. 

An online Trading account serves as a medium through which you can buy and sell stocks in the Stock Market. Since all trading is done in electronic format, you will have to open a Demat account and an online Trading account if you wish to buy or sell shares. This is mandated by SEBI for investing in the stocks of listed companies. 

If you’re wondering about the eligibility criteria, then you’ve come to the right place. This article will tell you all you need to know.

Eligibility criteria to open an online Trading account

You can open an online Trading account through any stockbroking house or bank that is registered with SEBI. The eligibility criteria for Trading account opening are simple. Just keep the following conditions in mind:

• Nationality

You need to be an Indian citizen who is currently residing in India. Although NRIs can also invest in the Indian Stock Market, the process is slightly different for them.

• Age

It’s a popular misconception that you need to be 18+ to open an online Trading account. There are no age restrictions on investing. If you are under 18, then your parents or legal guardian can open an online Trading account in your name. 

• Documents required 

A couple of important documents including your PAN card, address proof, etc. are needed for Trading account opening. 

Documents needed for opening an online Trading account

It’s essential to get the paperwork right when opening a Trading account. For documentation, only photocopies of the documents are required when submitting. However, for verification, the original documents will be required. 

Here’s what you need: 

• PAN card 

It is mandatory to submit your PAN card when opening an online Trading account to serve as identity proof. 

• Photograph and signature 

You need a passport-size photograph and your signature on a white sheet of paper. 

• Address proof 

The Aadhaar card is the most popular address proof used. However, you can also submit your passport, driving license, utility bill, or bank statement of the last three months as address proof. 

• Bank proof 

Your online Trading account will need to be linked to your bank account so that money can be transferred for trading. As bank proof, you can submit either a canceled cheque or your passbook. 

• Income proof

Income proof is required only when you want to trade in Futures and Options. Your salary slips for three months, bank statement for six months, ITR statement, Demat holding statement, or net worth certificate – any one of these documents will work.

At Upstox, we provide a simple and quick way to open your online Trading account: 

-Simply visit the Upstox website or app

-Fill and submit the online form

-Take and upload clear pictures of your address proof, identity proof, and bank proof

Get your client ID and start trading