What is Difference Between Demat and Trading Account?
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.
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.
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.
Differentiate between Demat Account and Trading Account
|DIFFERENCE||DEMAT ACCOUNT||TRADING ACCOUNT|
|FUNCTION||Hold securities like share in a digitalized format.||Helps conduct trade by selling and buying of shares.|
|NATURE||Saves financial instruments in electric format.||Functions like a bank account|
|ROLE||ensures the safety of shares||Carries out transactions|
How to open a Trading account and a Demat account?
Opening a Demat account and a trading account might be a time-consuming work. But with Goodwill Wealth Management it need not be
CLICK HERE to open your FREE DEMAT ACCOUNT and TRADING ACCOUNT with GOODWILL WEALTH MANAGEMENT. Fill in your details and our expert will contact you to open your instant and hassle free account.
Trading with Goodwill Wealth Management
Trading with Goodwill wealth management comes with a plethora of benefits. Goodwill gives to you a choice of smart trading. With advanced apps like INTEGER and GAMA, you can trade on the go comfortably. With free webinars made available by experts at Goodwill, you can give yourself a knowledge boost with ease. After all, risk comes with not knowing where you are trading.
Goodwill regularly posts motions of the market to keep you in sync. Our experts are made available to you whenever you need them along with back-office support. Goodwill’s free trading accounts are just a cherry on top.
With Goodwill don’t just trade, trade smart!
For a no-compulsion initial consultation and a successful trade journey in 2020 amidst the crisis, join hands with GOODWILL WEALTH MANAGEMENT. Call us today on +91 80122 78000 to Indulge in Smart Trading and Smart Earning!