How to Set Up an Online Trading Account

September 25, 2009

2 min Read

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Not only is owning the latest gadgets a passion for many, but utilizing them to enhance their lives is the icing on the cake.

One such technology that is growing at leaps and bounds is the online trading industry. In the past decade, more online brokerage companies have popped up allowing individuals to buy or sell securities using the provided broker’s proprietary software. The competition for new business accounts is fierce with many trading companies offering free cash, trades and other perks to entice new independent investors.

How do I set up my account?

If you have already decided on embracing online trading and have chosen an online brokerage firm, you can begin to open an online trading account. Although the steps and information may vary from company from company, you will need to complete some online forms with the following information:

Complete name
Birth Date (to prove you are over 18 years of age)
Social Security number (for tax recording purposes)
Home and or work address
Phone numbers
Security passwords of your choosing
You must fund the account by either mailing in a check or linking your checking account electronically

Generally the online trading company will have a link on their home page that is clearly labeled “open an account” or some similar verbiage. All you would need to to click through, follow the prompts and provide them with all the information they request along the way.

There may be a couple of day verification period to ensure that your other banking account as properly linked electronically with theirs, but aside from that, opening an online trading account is quick, easy and secure. Once the online trading account is open, you will have access to your account information and the ability to move your money 24/7 (although actual trades may not occur during traditional trading hours).