Browser Output 
<?php
$new = htmlspecialchars("<a href='test'>Test</a>", ENT_QUOTES);
echo $new; // &lt;a href=&#039;test&#039;&gt;Test&lt;/a&gt; // view source code output
?>
<a href='test'>Test</a>

htmlspecialchars function enables us to escape data before storage into the database.

<?php
$new = htmlspecialchars("<a href='test'>Test</a>", ENT_QUOTES);
echo $new; // &lt;a href=&#039;test&#039;&gt;Test&lt;/a&gt;
?>

Note:

Note that this function does not translate anything beyond what is listed above. For full entity translation, see htmlentities().

htmlentities() example

<?php
$str = "A 'quote' is <b>bold</b>";

// Outputs: A 'quote' is &lt;b&gt;bold&lt;/b&gt;
echo htmlentities($str);

// Outputs: A &#039;quote&#039; is &lt;b&gt;bold&lt;/b&gt;
echo htmlentities($str, ENT_QUOTES);
?>

addslashes function enables us to escape data before storage into the database.