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DEMAT/TRADING ACCOUNT

What is a Demat/Trading account and how is one different from the other?

Demat Account is simply an account that allows you to hold your shares in an electronic format. On opening a demat account, you will be given a demat account number to be able to electronically settle your trades. The workings of a demat account is very similar to that of a bank account. In your demat account, the securities are held and accordingly debited and credited. You do not need to have any shares to open a demat account; In fact, you can even have zero balance in your account.

To conduct your stock trading activities, you require a Trading Account. With this account you are assigned a unique trading ID which grants you access to conduct trading transactions. A trading account is used for the buying and selling of the securities by means of it getting debited from your demat account and sold in the market.

A demat account, on the other hand, allows investors to keep their financial instruments in an electronic format. Demat account is the place where the shares and securities that you buy from the market are stored. Unlike a trading account that functions like a current bank account, a demat account works like a saving account.

Both these accounts, as different as they may be, are crucial for any trading in the share markets. When, as an investor, you buy the shares of any company, you use the trading account to do so. The money is debited from your bank account and the shares are reflected in your demat account where they are also credited. Thus, to trade in the stock markets, it is mandatory to have both a demat as well as a trading account.

Follow the below steps to open your Demat/Trading Online account with Adroit Financial Services

-Head to the Adroit online demat account opening page.
-Enter your basic details and click Sign Up.
-Keep scanned copies (i.e., soft copies) of your documents (Aadhaar, PAN, Cancelled Cheque, and your latest bank statement) with you for when you are     directed to upload them.
-Enter your Aadhaar details and the OTP you receive on your linked mobile number in order to verify your identity
-That should be it. Your demat account should now be created.
-You’ll also receive additional confidential data - such as a Login ID and key for accessing online portals and placing trades. Keep in mind that these transactions are likely to attract charges. You might incur some charges for using certain portals.
-We will make it easier for you with E-KYC & Customer support.