What Is The Contrast Between Demat Account And Trading Account?


Indian stock markets are expanding significantly and alluring more investors. Any individual can take advantage of stock market investments for short-term or long-term gains. You need a demat account and a trading account with a stockbroker to enter the stock market. Approaching the stock market is convenient with demat and trading accounts. These are two different accounts, but their working system is connected closely. 

For an easy understanding of the fundamental difference between a demat account and trading, a demat account stores your equities and other securities, and a trading account reflects the flow of trade transactions over a period. Both accounts are assigned unique IDs that are used during the trading process. 

In the earlier outcry trading system, if individuals intended to invest funds in the stock market, they had to visit ground-based stock exchanges and keep shouting to place desired calls on buying or selling securities. There were issues with the safety of securities, damage, delays, theft, etc. Indeed, it seems a daunting process. 

Now, in the online trading system, you just need a demat account and trading account to participate in the stock market. Both accounts together make the trading process convenient and available at your fingertips. 

Read the post to know the key differences between demat and trading accounts.


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