Know How to Open a Stock Account to Buy Shares

How do you start investing in stocks? How do I open a stock account and start buying shares? This time my Finance will try to discuss about how to open a stock account and how to buy shares for beginners.

Starting a Stock Investment

Of the many investment instruments, stocks are an attractive form of investment. This is because stocks are one of the investment instruments that have large returns in a relatively short period of time.
Many investors want to invest in stocks, but there are some things that novice investors need to know about starting a stock investment. Therefore in this article, we will discuss how to start a stock investment from opening a stock account to buying shares. Before we start discussing how to buy shares, let’s start from how to open a stock account.

Stock Account Requirements

The process of opening a stock account is quite simple. Before you try to open a stock account, there are several conditions that you need to prepare to be able to open a stock account. After you have prepared all the requirements above, then you can begin to determine which securities you choose. If you are still confused to determine which securities, you can read first the tips on choosing a stock broker from us. Hopefully you get a broker that suits you.
Open a Stock Account
Once you know the requirements, here are the steps you can take to open your stock account:

# 1 Meet Brokers and Make Accounts
After you have determined the broker’s choice, if you intend to open a stock account online, you can download the online form provided by the securities company on its website, then fill in and send it.
Or if you have a friend who can recommend a particular broker, you can also make an appointment with a broker to meet directly to open your account.

# 2 Fill in the Form and Attach Requirements
After you meet with a broker, you can fill out an account opening form, including a stock account and investor fund account. Form filling is similar to when opening an account at a bank. It is recommended to fill in correctly each column on the account opening form. Don’t forget to attach the account opening requirements as described above.

# 3 Choose and Open the RDI
In addition, the form for opening a stock account generally consists of two parts, namely the opening of a stock account and the opening of an investor fund account (RDI).
• The opening of the Share Account is to open an account with a securities company, and also for data submitted to the Indonesian Central Securities Depository (KSEI). This is a stock storage account that you have.
• While the Investor Fund Account (RDI) is an account of your funds, which is placed in the bank, separate from the securities company account. The benefit of RDI is that you have your own bank account for the entire settlement of your stock transactions. This RDI itself aims to save customers’ funds that are not bought by shares.
The regulation regarding the separation of accounts has not long been applied by the Indonesian government, because previously every fund deposited in a stock account will be kept in a securities account, so that your funds are combined with funds from other investors. The existence of this separation may seem a little inconvenient but the purpose of this separation is indeed for the security of investors.
At this point, you can choose a bank to hold your funds (bank for RDI). It is highly recommended that you choose RDI from the same bank as your personal account, so that you can save administrative costs such as Clearing and RTGS if you want to deposit in the RDI, or withdraw money from the RDI.