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Is demat account different from online trading account ?

azizkhan's picture
Submitted by azizkhan on July 9, 2009 - 04:01

Hello ,
Can someone please explain me what is Demat account and online trading account? Now to get into stock and shares do we need both account or just demat a/c is sufficient?

which bank provides good service in opening demat a/c?


»
Submitted by opagarwal on July 10, 2009 - 00:10. #

Hello Azizkhan,

Trading Account and Demat account are two completely different accounts with different account number.

Actually to do online trading you need

1) Trading account with Broker
2) Demat account with Depositary/custodian
3) Bank account with bank

Now the banks and trading houses has made this process easy by opening all three account at single place. A bank like ICICI is a broker as well a custodian as well.

Pan card is mandatory for opening a Demat account (effective from April 01, 2006)

* Charges applicable (vary from DP to DP):
o Account Opening Fee
o Annual Maintenance Fee
o Custodian Fee
o Transaction Fee

* Similar to a bank account a Demat account may be closed after a period of inactivity. Check with the DP about the period and the charges associated with reactivating it.

 

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