Difference between a Trading account and Demat account?

Difference between a Trading account and Demat account?

You must had heard about two most common words when you get envolved into share market .If you are a beginner in share market you must have to be aware about two fundamental term trading account and Demat account.

If you get confused between this term in this article we are going to clear all doubt related to this term in brief.


* What is Demat account in 2022?


Before going into term you must have to get clear about its meaning. A Demat account is basically a type of account where we can hold our investment or you can say that your owned share for the future in dematerialized from .


* What is trading account?


The another most important account you need to know when you enter into share market.trading account is basically used to trade in open market within a day.To get high profit in share market you must have trading account to access this option in share market.both account are highly sensitive you must have proper information about investing your money.


* Demat account


When you start investing your money in share market the first step you need to perform is opening a Demat account. You can open a Demat account online through different trading platform like Zerodha , Angel one and grow up and many more. A Demat account is basically store your asset or share you buy in digital mode . To open a Demat account you need to fill some confidential data to online agent . It includes your pan card, adhar card and many more. Demat account work similarly like your normal bank account where you can deposit your money any time and withdraw it quickly . While opening a Demat account you don’t need any opening balance and security portfolio.


* Trading account


Share market basically work in two phase one is like you buy and sell and hold it for lifetime . On other hand trading account is basically is used to perform stock activity like trading. Trading account can be open only by the enrolling with company listed in stock list or by the help of brokerage you can open this account when you open this account you can trade daily share of different company listed on the stock exchange . Every trading account have unique account ID with there profile through which one can start trading easily.


Demat account vs Trading account


After distinction between the meaning of demat account and trading account now it’s time to look at some of the key differences between demat account and trading account.


* Difference in terms of compliance


If you want to open a Demat account you must need the approval of SEBI dealer as well as stock broker with NSDL or CDSL licenced.

But if you talk about trading account you don’t need to have such permission . You can open more than one demat account as well as trading with different stock broker. But one thing you must remember in your mind while opening more than on demat account that one demat account and trading account can be tied by a single pan card.


Difference in functionality


The next point which we can compare between demat account and trading account is there functionality . If we talk about demat account it store share securities . It act as a re materialization purpor which transfer digital stock in physical from. While trading account offer user to sell there share and equities within a day , with the help of trading account we can buy or sell same share within a day . You must have customer account I’D to operate this function.




After comparing both result we can say that demat offer there user to hold their share and equities electronically . On other hand trading account help in trading the stock exchange . Both these accounts are most essential elements of market , they both are totally different from each other. In this article we have covered most asked questions before investing into share market . We hope you all get clear about demat account and trading account in this article if you like this article kindly social media. Share market is highly risky you must have proper information before inve

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