What type of account do you need if you want to invest or trade

Investing/Trading accounts, and account types, can vary especially between different brokers. To trade in the stock markets, you require three types of accounts:

1.    De-mat Account

2.    Trading account

3.    Commodity Account

 

De-mat Account

A De-mat account is also known as Dematerialized account. In other words, converting or dematerializing your physical shares in the electronic format is known as holding a De-mat account. This account is mainly used for buying and holding equity shares.

 

Trading Account

A Trading account is used to purchase and sell shares in stock markets. Once you have a De-mat account, and want to sell your shares or purchase new securities, you need a Trading account. This account is specially used for day-trading equities, futures and options.

 

Commodities account:

To buy, sell and trade commodities, you need to open a commodity trading account with a broker.

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