Can anyone explain the difference in demat account and trading account.
3 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(179906 Points)
Replied 28 November 2022
A demat account helps investors hold shares and securities in an electronic format.
A trading account is an interface that allows buying and selling of shares. · It acts as an interface between the investors' bank and Demat accounts.
AMIT CHAUHAN
(9 Points)
Replied 06 December 2022
Many people mistake a demat account and a trading account accounts as one and the same. However, that is not the case, and there is a clear difference between demat and trading account. If you wish to invest in the stock market, you will require both accounts since both accounts serve a specific purpose. You require a demat account to hold or store the shares you purchase electronically. On the other hand, you need a trading account to buy and sell shares. You can open both accounts simultaneously with SEBI (Securities and Exchange Board of India), a registered broker like IIFL Securities. Moreover, a broker like IIFL lets you open both accounts for free.
https://www.indiainfoline.com/knowledge-center/demat-account/what-is-a-demat-account
Shreya Agarwal
(13 Points)
Replied 23 March 2023
A demat account and a trading account are two separate accounts that are required to invest in the stock market. The primary difference between a demat account and a trading account is the purpose they serve.
A demat account is an account that holds your securities in an electronic form. It is similar to a bank account where you can deposit and withdraw your securities. When you buy or sell securities, they are credited or debited from your demat account. A demat account is essential for holding shares, mutual funds, bonds, and other securities in electronic form.
On the other hand, a trading account is an account that is used to place buy or sell orders for securities. It is like a platform that allows you to trade in the stock market. A trading account is used to place orders for buying or selling securities, and it is linked to your demat account. The transactions that take place in your trading account are settled in your demat account.
For more information visit:-
Recent Topics
- ITR filing for non resident in one FY
- 2 buyer form 26qb
- CFS INCLUDING MAURITIUS SDS
- Tds on rent paid to two persons
- GST R-9 Turnover
- ITC wrongly Taken in GST 3B
- Tax liability in the case of Joint Ownership of Pr
- RCM-Director
- Levy of GST on the invoice that crosses Rs.20 lakh
- Clarification for ITR AY 2024-25
Related Threads
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
