A Demat account holds your securities like stocks, bonds, and mutual funds in electronic form, while a trading account is used to buy and sell these securities. In simple terms, the trading account is for executing trades, and the Demat account is for holding the securities after the trade is completed.
Why Do You Need Both Accounts?
You need both accounts because they serve different purposes. The trading account allows you to place buy and sell orders, while the Demat account stores the securities you purchase. Without a Demat account, you cannot hold the securities you buy; without a trading account, you cannot execute trades.
How to Open a Demat and Trading Account with Angel One?
Opening both accounts with Angel One is simple and free. You can start by visiting their website and following the easy steps to complete your KYC process. Once approved, you'll have access to both accounts, allowing you to trade and hold securities seamlessly.
What Are the Benefits of Having Both Accounts?
Having both accounts allows you to trade efficiently and securely. The trading account facilitates quick execution of trades, while the Demat account ensures your securities are safely stored in electronic form. This combination provides a seamless trading experience.
Can I Open a Demat Account Without a Trading Account?
No, you cannot open a Demat account without a trading account. Both accounts are interlinked, and you need a trading account to execute buy and sell orders, which are then reflected in your Demat account.
How Are These Accounts Linked?
These accounts are linked through your unique client ID. When you execute a trade through your trading account, the corresponding securities are credited or debited from your Demat account automatically, ensuring a smooth transaction process.
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