I already have a Demat account with other broker. I want to open only a trading account with AO and link that Demat account with the trading account of AO. How to go about it?
Hi @thestrategist Welcome to Angel One Community!
Previously, traders could open trading and demat accounts with different brokers. This was possible because the settlement cycle was T+2, which meant that if a trader sold shares today, the pay-in would be charged tomorrow, and the trader could use the shares tomorrow. However, now that the settlement cycle has been reduced to T+1, there is a risk that if a trader sells shares and the demat participant (DP) does not transfer the shares within the set time, the transaction may be moved to auction, and the trader will be liable for auction charges or penalties. In the coming years, the trading settlement cycle may be even further reduced to one hour.
For this reason, it is advisable for traders to open both trading and demat accounts with the same broker, such as Angel One. This will make it easier to settle trades and avoid any potential delays or penalties.