What is an equity account?
You need an equity trading account to be able to trade. This account enables you to buy and sell shares of companies and also hold them in a dematerialised format.
Equity account opening involves signing up for trading and demat accounts. These two will then get linked to your savings bank account (with your consent) for transferring funds. Thanks to a fully digitized process, brokerage firms like Angel One provide integrated platforms for opening equity accounts.
Trading account
A trading account lets you buy and sell securities on the stock exchange. Here you get a unique trading identification number (id).
Demat account
A Demat account is like a digital locker for the securities you buy as it holds the securities in a paperless (dematerialised) format. It has replaced the physical storing of share certificates. You can say it’s a bank account to park your investments.
The purpose of a Demat account is to hold securities purchased through a trading account and payments are done through the linked bank account.
This distinction is vital in the equity online account opening process and even if you choose to submit physical documents.
Benefits of opening an equity trading account:
Now that you know what is an equity account let’s look at benefits. It is essential to do your homework and choose the best options. Among other things, established brokerage houses have full transparency about their pricing and operations. Their websites are interactive and continuously updated. They can provide the right guidance backed by top-notch market analysis and market experts’ opinions. Finally, the best brokerage houses offer reasonable account opening and transaction brokerage rates.