What is difference between brokerage account and demat account?

An online trading account is known as Demat account. Since it is an online trading account, it does not involve a broker. This is a great relief because people are not charged for both ways brokerage.

In case of online trading, you do not even have bother about any fee for the broker. No physical shares are involved in online trading. It is a type of electronic purchase and therefore devoid of any physical transfer of shares.

Much like the online savings accounts, you can keep shares instead of money with a Demat account. What lies in between the Demat account and the exchange account is the brokerage account.

Brokerage account, and by extension a broker, is therefore considered as the middle-man, who stays at the mid-way. It is possible for you to have a single Demat account and numerous trading accounts which are linked to the same Demat account.

You have to call the firm that offers you the opportunity to open a Demat account. It would henceforth provide you the services and enable you to have online trading. Some people are of the opinion that Demat account provides a nice market experience without the least fear of loss and negative output.