Saving vs demat vs trading account

demat vs trading account
Feature	Demat	Trading
Purpose	The purpose of the Demat account is to store the shares or other assets.	The trading account is the account through which shares or other assets are bought and sold.
Use	Used to hold shares in electronic form.	Used for trading (buying and selling) in the stock market.
Example	Like a locker where you store your shares.	Like a shop where you buy and sell shares.
Interest/Profit	No interest earned, just keeps shares safe.	No interest earned, but you can make a profit by trading.
Accessibility	Cannot directly access money, only holds shares.	Used with a Demat account to trade in the market.
Opened By	People who invest in stocks.	People who actively trade in stocks.
Physical Form	Shares are kept in electronic form, not physical.	No physical items, only online transactions.
Risk	No risk in holding shares, but shares can lose value.	Higher risk, as you can gain or lose money quickly.
Fees/Charges	Annual maintenance charges may apply.	Brokerage fees are charged on every trade.
Regulation	Regulated by stock market authorities.	Regulated by stock exchanges and brokers.
Time to Open	Requires more paperwork, linked to a Trading account.	Takes some time, linked with a Demat account.
Linked Accounts	Must be linked to a Trading account to buy/sell.	Must be linked to a Demat account to hold shares.
Minimum Balance	No balance, just holds shares.	No balance, transactions are based on market value.
Transactions	No direct transactions, only holds shares.	Active buying and selling in the stock market.

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Businesses that want to raise money by selling stock can choose between two types: common stock and preferred stock.

Stock exchanges reflect the economic health of the country. For instance, the NSE and BSE measure the health of India's economy.

The trading account is the account through which shares or other assets are bought and sold.

The purpose of the Demat account is to store the shares or other assets.