Demat & Markets
A demat account holds your shares and other securities in electronic form, just as a bank account holds money. A trading account is used to place buy and sell orders on the stock exchange. In India, securities are held with depositories (NSDL or CDSL) through a depository participant such as a broker or bank.
Updated: · For education only. Not investment advice.
Guides in this section
- Demat and trading accounts→
- Depositories and intermediariesComing soon
- Brokerage and chargesComing soon
- Order typesComing soon
- Reading statementsComing soon
Frequently asked questions
What is the difference between a demat and a trading account?
A demat account stores your securities, while a trading account lets you place orders to buy or sell them. To buy and sell shares on an exchange you normally need both, usually opened with a SEBI-registered broker.
What are NSDL and CDSL?
NSDL and CDSL are the two depositories in India. They keep electronic records of securities, and you use their services through a depository participant (DP) such as a broker or bank.
What charges apply on demat and trading accounts?
Common charges include an account opening fee (often free), an annual maintenance charge (AMC), brokerage on trades, and statutory charges such as STT, GST, stamp duty and exchange fees. They differ by broker, so read the broker charge sheet before opening an account.
Investments in securities markets are subject to market risks. Read all related documents carefully before investing.