If you want to trade stocks and shares, the ideal way is to open an online trading account with a stockbroker. The advent of broadband internet has made registering a business account online very easy and simple. In fact, it only takes a few minutes to set up an account.
The first step is to provide your personal information which includes your first name, your mother’s maiden name, date of birth, marital status, number of dependents, if married, home and office mailing address, email address, and your residence, office and mobile phone numbers One important thing to note here is that you must be 18 years or older to be able to execute any financial transaction.
You must also provide your financial information, which generally includes your employment status, the name of the employer, if you are employed, your office address, and your annual income. If you are self-employed, you must provide the detail of your annual income, your net worth and also your liquid net worth. Providing financial details is imperative as you are starting a trade where you may need to receive credit from your broker.
Since your online trading can involve large amounts of investment, it is important that your transactions remain confidential and secure against any tampering, hacking or theft. To protect your financial information and ensure that transactions and trading remain confidential, you must select a user ID and password to access your online account. It goes without saying that only you should know your password and you shouldn’t even share it with your broker. Never reveal your password to anyone or write it down anywhere under any circumstances. The best way to create a strong password is to use numeric and alphanumeric characters. Also, you should keep changing your password every few months to be safe.
Online stockbrokers use many other techniques to ensure the privacy of their investors. For example, they can assign you some image/phrase or an encrypted number/code, which only you will know. Therefore, your account page will never open unless you provide the required information. You may also be required to select certain secret questions and provide answers to them in case you forget your password or want to change it.
In order to view real-time data provided by your broker, you may also be required to read, understand, and comply with certain mandatory terms and conditions set forth in the NYSE and AMEX data subscriber agreements. To do this, check the box at the end of each agreement.
It is always advisable to be fully aware of some elementary information before opening an online trading account. For example, to choose the account that fits your requirements, you must know the types of accounts available and their advantages and disadvantages. There are generally four types of accounts: Individual Accounts, Joint Accounts, IRAs (Individual Retirement Accounts), and Education Savings Accounts. Brokers usually provide the details of each of these accounts on their web pages.
There may be times when you need to ask your broker for credit. Therefore, you should familiarize yourself with the concept of cash and margin accounts.
To open a business account online, you must be a US citizen or a resident non-citizen with a valid social security number. The Internal Revenue Service (IRS) also issues an Individual Taxpayer Identification Number (ITIN) to individuals who are required to “have a U.S. Tax Identification Number.” Administration- SSA”.
“ITINs are issued regardless of immigration status because both resident and non-resident aliens may have US tax filing and payment responsibilities. They find an exception.”
