What is the difference between demat and online trading account
The shares you purchase get credited to your demat account and it gets debited from demat account when you sell the shares. Trading account acts as an intermediary between bank account and demat account. When you open a demat account online, simultaneously your trading account too gets opened. Functionality: a critical difference between Demat and trading account relates to the roles of each account. You make the use of a trading account to buy and sell shares while these get debited from your Demat account on the stock market. Your Demat account keeps your shares and securities in an electronic format, safely. Difference Between Demat and Trading Account – Which One do I need? Understanding what are demat accounts and trading accounts are the primary steps towards transacting in the stock market.At the onset, you need both whether you are looking to invest or trade – does not matter.