How to Activate a Trading Account Online

Online trading is but one modernization that has expanded the investor class. Establishing and activating an online trading account is quite simple, and irrespective of what service you use, it can be done by spending just a few minutes online and the time it takes to sign a form and mail an envelope.

Things You'll Need

• Computer with Internet connection
• Check or electronic transfer for deposit to fund the account
• Printer and paper
• Pen, envelope and postage
• Any paperwork on existing accounts you want to roll over/fund new account

Instructions

Choose a Provider

1. Survey a range of online trading service providers. Check their fee structure, including cost of trades, account minimums, withdrawal policies and the like to make sure they will work for your investing goals.

2. Click on "Apply to Open Account" and fill out the form in its entirety. Key information included here establishes your identity, including your address, driver's license number and mandatory disclosure of your Social Security number for both identification and tax purposes. All major investing sites have secure servers to protect your data with encryption. Some sites also have you establish a link to your bank account simply to verify that you are who you say you are. Typically, you will provide your bank routing and account numbers, the investing site will deposit a few cents into your account and when it is deposited, you go back online and verify the amount/s. When complete, print a copy for your records and another copy to sign, date and mail to your trading service.

3. Select how you are going to fund your new account by rolling over retirement funds from another investment institution, mailing a check or making an electronic funds transfer from your bank to your trading account. These are the three main ways to fund an account. Either fill in the information online for electronic transfer, or mail a check in with your printed, signed and dated application.

4. Wait until your funds clear. You will not be able to make trades on your account until the funds are deposited and processed, which usually takes three to five days. You should be ready to start investing within a week of mailing the original paperwork and signatures and your deposit.

5. Once your account has been funded, log into your account online, choose your stocks and place your first trade. You're official!

Resources

• Scottrade is a good, low-fee online trading site
• Here is another that works online and has a relatively good fee structure
• Another great online investing resource