Opening an account and passing verification
What you learn in 3 minutesA reader in India opens a trading account with a regulated broker and is asked for identity, address and bank documents before any money moves. The account is verified, then funded, and only then can a position be opened. This lesson shows what a broker must ask for under SEBI rules, why it asks, and what makes an application sit in a queue for days.
Twenty pips on a tenth of a lot
| Step | Amount | Note |
|---|---|---|
| Instrument | USD/INR | The example pair used throughout this course |
| Reference price | 83.2500 | A round number used only to make the arithmetic visible |
| Pip value on one standard lot | ₹10 | 100,000 x 0.0001, which is the pip size for this pair |
| Position size | 0.10 lots | One tenth of a standard lot |
| Pip value at this size | ₹1 | ₹10 x 0.10 |
| Move in pips | 20 pips | The distance the price travels |
| Result before costs | ₹20 | ₹1 x 20 pips |
The broker may round the pip value, charge a spread, a commission or a conversion fee, and the final figure on the statement can differ from the arithmetic here. Verification itself is free; funding is where costs begin.
The mistake people make here
The common mistake is sending a photograph of a document that is cropped, blurred or pasted into another image. The check fails, the application returns to the queue, and the reader assumes the broker is slow. Send the full page, in colour, with all four corners visible, and make sure the name matches the name on the bank account. If a document is in a different name, the application will be held until the mismatch is explained. Ask the broker which documents it accepts before uploading anything, because the list varies between brokers.Check yourself
If one pip on one standard lot of USD/INR is ₹10, what is the pip value on 0.25 lots?
₹10 x 0.25 = ₹2.50.
A move of 12 pips on 0.25 lots gives what result before costs?
₹2.50 x 12 = ₹30.
Why does a broker ask for both an identity document and a bank document?
The identity document confirms who the applicant is, and the bank document confirms where money can be sent and returned. Both are required before the account is opened.
In India
- Regulator
- SEBI
- Money
- rupee, written ₹ (INR)
- Payment methods
- UPI and bank transfer
- Instrument in examples
- USD/INR, around 83.2500
- Pip value
- one pip on one standard lot of USD/INR is ₹10