A Demat account is used to store stocks and share equities that can be traded in the stock market. One key feature of a Demat account is that it can only be used to hold assets that create ownership.

That is futures and options that are usually dealt with in cash and are contract-based, hence creating no ownership, cannot be held in a Demat account. And that is why a trading account is used.

A trading account can be used to hold futures and options without creating ownership.

What is a trading account?

A trading account is an account registered with a brokerage firm that can be used to trade in stock and shares. You can buy and sell stocks on the same day, and even the same session.

A trading account lets you day trade and you can indulge in zero difference trading where you can buy shares and sell them the same day before the market closes.

A trading account lets you trade dynamically within minutes and the profits are gauged on a short-term basis. That is trading often involves frequent buying and selling in small windows of time when the market prices are the most profitable for the trader.

A trading account ensures a seamless trading process where the orders are processed through a unique Id assigned to each trading account.

While trading in non-owned assets can be performed solely with a trading account, you can hold equities only in a Demat account.

You can make do without opening a Demat account if you choose to rematerialise your assets or choose to hold only F&O assets and indulge in cash transactions.

What is a Demat account and how is it different?

A Demat account lets you hold all your equities and shares in one place from where they can be traded using a trading account. If you own any equity shares or stocks in a company, the SEBI guidelines dictate that you have to hold them in a Demat account.

You can also hold owned assets that you are not going to trade soon in a Demat account. So, a Demat account acts as any other bank account but here, you get the option of holding your equities, shares, exchanges, and other assets.

You can link your Demat and trading accounts to sell stocks held in your Demat account and hold the purchased stocks in the same account. A Demat account can be used more efficiently in the long run as you can take your time to buy or sell the assets held in the Demat account.

A Demat account also incurs some maintenance charges annually. A trading account, on the other hand, does not incur such charges.

But certain brokerage charges are charged by the broker firm on every transaction done from a trading or a Demat account.

To conclude, there is just one major difference between a trading and a Demat account and that involves the type of assets which can be held in both accounts.

Demat accounts can hold owned assets while trading accounts let you hold and trade quickly in assets that do not create ownership.

Gill Broking makes your Share Investment & Trading Experience simple with major exchanges like NSE & BSE.

Open Trading Account Now @


Start Trading Now

Share this Post

Get The Latest Updates

Related Posts

The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

We are here to assist you !
Fill out the form and Start Trading...