Your Guide to Difference between Demat and Trading Account We have often noticed people getting confused between a Demat Account and a Trading Account and use both the terms interchangeably. Though they appear to be the same, there is a huge difference between a Demat Account and a Trading Account especially on the basis of the purpose served by each of them. For people who are interested in starting stock market investments, it is essential to understand the difference between the Demat Account and Trading Account. It is essential to be aware of the basic terms related to the stock markets before the investors and traders pool in their money into it. Let us understand what Demat and a Trading account is and how the two accounts are different from each other. What is a Demat Account? Demat Account or Dematerialization Account is an account that allows the investors to hold their shares in an electronic format. A Demat account converts the physical shares of investors into electronic