Which Type of Demat Account is Best for Trading?
If you want to try your hand in investing in share market, you will need best Demat account. Technically, Demat Account is used to hold shares, whereas Trading Account is used to place buy and sell orders.
A Demat and trading Account is needed to invest in a variety of financial products like Bonds, Mutual Funds, ETFs, stocks, and Government Securities. It is also essential while applying for Initial Public Offerings (IPOs).
A Demat Account can be seen as a Bank Account; while a Bank Account keeps your money, a Demat Account keeps your shares in electronic form. When you buy shares, the shares are credited to your Demat Account. Similarly, when you opt to sell your shares, they are debited from the same account.