Difference between Trading Account and Demat Account

Demat account is used to keep shares in electronic form. Demat accounts dematerialize shares by changing the physical form of shares into electronic format. You are provided with a unique Demat account number when you open an account with a Depository Participant member, mainly a Stock Broker or a Bank, to facilitate electronic settlement of financial securities; for example, Shares/Debentures/Mutual Fund etc.