I am new to USA. In India to trade in market one needs a Demat account and a trading account. but In USA, when I opened an account with a reputable brokerage there was no mention of an account similar to Demat. https://en.wikipedia.org/wiki/Demat_account



So my question is "what is USA equivalent of Demat account ?or it is not necessary in USA."

Or Indian stock market is unnecessary using DeMat Account.


1 Answer 1


The system in The USA and much of Europe too does not distinguish between a trading account and a demat account. Instead the broker holds the assets on your behalf and you manage the trades with the same account

This has the advantage of requiring one less account and makes trades more simple. On the other hand it means the broker effectively holds your assets, creating risk if the broker has financial issues or becomes uncooperative regarding the trading account.


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