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Trading Account vs Demat Account

Trading account and demat account work together to form your investment portfolio but they serve different purposes.

In simple terms, a demat account holds on to your securities for an indefinite amount of time, however long you want to before selling, whereas a trading account executes your orders, that is buying and selling of securities. When you open a demat and trading account together, both are linked automatically, making the process faster and simpler.

Why Open a Trading Account with YES SECURITIES?

A trading account is the doorway to access the stock market. Mentioned below are a few possibilities once you open it.

• You Stop Being a Bystander in the Market Without a trading account, you can watch the markets but never act on them. With one, every listed stock, ETF, bond, and IPO on NSE and BSE is within reach. The gap between dream of investing and actual investing closes.
• Your Money Has the Potential to Work Harder A savings account offers fixed, predictable returns. A trading account opens the door to equity markets, where your returns are tied to business performance and market growth. The risk is higher, but so is the potential.
• You Can Invest on Your Own Terms With a trading account, the possibilities are endless. It gives you the flexibility to invest in a way that fits your financial goals. Buy a single share or build a diversified portfolio. Invest a lump sum or set up an equity SIP for as little as you're comfortable with. Trade intraday or hold for years.
• IPOs Become Accessible Every IPO application in India goes through a linked demat and trading account. Without one, you're locked out of primary market opportunities entirely. With one, you can apply for any mainboard or SME IPO as soon as it opens.
• You Build a Clearer Picture of Your Wealth A trading account consolidates your market investments in one place. Your holdings, transaction history, P&L, and portfolio performance are visible at any point — giving you a more accurate view of your net worth than a savings account balance ever could.
• Tax Benefits Through ELSS and Long-Term Holding Equity investments held for more than a year qualify for long-term capital gains treatment. You can also invest in ELSS mutual funds through your trading account to claim deductions under Section 80C.

Advantages of Opening a Trading Account with YES SECURITIES

A trading account gives you access to the stock market, so it is important to factor in with whom you are opening your account.

• Open trading account in under 10 minutesLaunched in March 2025, our OMNI app walks you through a completely digital KYC process, from Aadhaar verification to account activation. You can open trading and demat accounts online and be market-ready the same day.
• One app. Three accounts. YES SECURITIES' 3-in-1 account integrates your Yes Bank savings account, Demat account, and trading account in a single platform. Fund transfers reflect instantly.
• Trade across 4,500+ stocks and 4 exchanges Access equities, F&O, currencies, commodities, ETFs, mutual funds, and IPOs from one trading account. YES SECURITIES is registered with NSE, BSE, MCX, and NCDEX.
• Go beyond Indian markets With access to 30+ global markets and 35,000+ international instruments, you can diversify your portfolio beyond domestic equities.
• Research that helps you decide It is not just about raw data. Daily research calls, in-depth equity reports, and the Stock Health Score (rated on Durability, Valuation, and Momentum) give you a clear view before you place a trade.
• Regulated, trusted, and operating since 2013 YES SECURITIES is a SEBI-registered broker and a fully owned subsidiary of Yes Bank. 10 years+ of operations, serving clients in retail, HNIs, and institutions across India.

Common Terms of a Trading Account

1. Trading account: A trading account is exclusively used to place buy and sell orders on stock exchanges like NSE and BSE. It is required for any market transaction.
2. Demat account: It holds your shares in electronic form. When you buy shares, they are credited here. When you sell, they are debited.
3. 3-in-1 account: A linked combination of your bank account, Demat account, and trading account. All on one platform for seamless fund transfers.
4. Market order: It is an instruction to the broker to buy or sell a stock immediately at its current market price. Execution is instant; price is not guaranteed.
5. Limit order: It is an instruction a trader gives to the broker to buy or sell only at a specific price you set. The order stays pending until the stock hits that price.
6. Stop loss order: When instructed by the trader, it informs your broker to automatically exit your position if the price falls to a level you've defined. Used to cap downside on a trade.
7. Intraday trading: It’s a type of trading where the trader buys and sells a stock within the same trading day. All positions are squared off before the market closes at 3:30 PM.
8. Delivery trade: Opposite of intraday trading, the trader buys shares and holds them beyond one trading day. Shares are credited to your Demat account after settlement.
9. Brokerage: The fee charged by your broker per trade. YES SECURITIES charges 0.40% for delivery trades and 0.04% for intraday.
10. Margin: Margin is the additional buying power provided by your broker beyond your available cash balance. It helps a trader bank on opportunities beyond their buying capacity.
11. ASBA: Application Supported by Blocked Amount. Used for IPO applications where funds are blocked, not debited, until shares are allotted.
12. Circuit breaker: A regulatory cap on how much a stock's price can move in a single session. It is set by SEBI to prevent extreme volatility.
13. AMC: Annual Maintenance Charge is the yearly fee a broker charges to keep your Demat account active. YES SECURITIES charges ₹350 per year.