This blog explains the key differences between a Demat Account and a Trading Account, highlighting their distinct functions, nature, and roles in the stock market. It clarifies how each account contributes to the trading process and the necessity of both for seamless investment activities.
Digitalisation has revolutionised the financial sector, making investing and trading more accessible and efficient. Gone are the days when you had to be physically present to trade in the stock market. Online trading now allows you to buy and sell shares anytime and from anywhere, provided you have a Demat Account and a Trading Account.
Although these accounts are often used interchangeably, they serve different functions. This article will compare a Demat Account and a Trading Account, helping you understand their unique roles.
Before diving into the differences, let's first explore each account individually.
Here are the key differences between the two:
If you wish to trade in futures, options, and currency derivatives, having a Trading Account is enough since these trading forms are settled in cash. However, if you want to trade in all equities, including intraday trading, you require a Demat Account per the Securities and Exchange Board of India (SEBI) regulations.
Read more about intraday trading by clicking here.
The DigiDemat Account by HDFC Bank allows you to open a Demat and Trading Account online and from the comfort of your home. With minimal documentation and a quick process, you can start investing in just a few clicks.
To open a Demat Account with the HDFC Bank, click here.
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.