Once you have decided what to trade in and how to trade, you will come across the next step which is the opening of an account. Now you might have heard about DEMAT and TRADING accounts. Today with Goodwill get a clear idea of what they are.<\/p>\n
Ages back, traders never had Demat accounts, the stocks that they brought wherein paper format, and had to be stored securely. Now due to this format, there were multiple risks of the stocks getting torn, damaged, or lost, also it involved intense paper works. After all this trouble the trader still had the task of storing and managing them. This was when Demat Accounts were brought into being. Demat Accounts or Dematerialised accounts convert your stocks into digitalized formats. These accounts make maintaining, storing, and transferring of stocks a cakewalk.<\/p>\n
Going back into history, traders followed an open outcry system to trade, where traders used verbal communications and gestures to buy and sell stocks. But this was hard to participate in and had several issues. All these issues were put to rest by the Trading Account. With this account now traders had access to multiple stock markets like BSE, NSE, MCX, etc. Trading Account acted like a link between the Demat accounts and bank accounts making the process much more easier.<\/p>\n
DIFFERENCE<\/strong><\/td>\n| DEMAT ACCOUNT<\/strong><\/td>\n | TRADING ACCOUNT<\/strong><\/td>\n<\/tr>\n | FUNCTION<\/strong><\/td>\n | Hold securities like share in a digitalized format.<\/td>\n | Helps conduct trade by selling and buying of shares.<\/td>\n<\/tr>\n | NATURE<\/strong><\/td>\n | Saves financial instruments in electric format.<\/td>\n | Functions like a bank account<\/td>\n<\/tr>\n | ROLE<\/strong><\/td>\n | ensures the safety of shares<\/td>\n | Carries out transactions<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | How to open a Trading account and a Demat account?<\/strong><\/h3>\n |