To invest in stocks, it is mandatory to hold a demat account, without a demat account you cannot invest your money in stocks. As demat account acts like a bank account wherein, the shares are kept in a place of money/cash. With demat account, a trading account is also important to buy shares in the market. As in trading account, the transactions of buying shares can be done whereas demat account is a repository of your shares. Therefore, it is utmost important to hold a demat and trading account to buy shares and trade in market. Open Demat Account