Share market is an avenue where one can see the ups and downs in the rate of shares of companies that are listed. The movement in prices is as per the demand and supply as well as the updates from the concerned company and market. For many people, such ups and downs prove much helpful as they can help them get profit in intraday trading in the market. However, it is not a game free from risks and hence only those who know the game can play it safely.
For such traders, the brokerage is an important term as well as the expense that they need control and therefore they try to have the account with the broker who charges them the lowest. Though the market has no specific standards and hence any broker can charge any amount as brokerage services, there are also some brokers who offer a grand discount in brokerage. Hence working with them can prove cost-effective to such traders as they do not charge heavy amount. Hence an account with such discount broker can be much helpful to such bulk traders. One can find several discount brokers in India who offer amazing services at discounted rates and hence it is necessary to know a few things about them.
The role of a broker:
Truly speaking the broker is the person who can facilitate the trader for the trading in the stock market. He offers the services with the help of which one can trade in the intraday as well as delivery based trading. However, here one must note that the rate of the brokerage in both of these segments is different. In intraday trading, the brokerage is lower compared to that in the delivery based. For a trader who loves to go for trading in any of these segments once or twice in a week it does not matter much whatever the brokerage charge he has to pay but for those traders who deal daily in the market and that too in a huge volume this rate becomes much important as at higher rate of brokerage he has to spend more amount which can reduce his overall profit significantly. Hence for such a trader who takes it as a business, it becomes troublesome to manage the show and hence normal broker cannot be allowed.
Why is it important to avail of this service?
Though the broker has a good role in market technically, in reality, he is just a facilitator for the trader, and therefore the bulk traders love to go for the broker who offers a discount in brokerage or one can say offer services at a low cost of brokerage. It helps the trader to save a huge amount of daily basis which can lead to an increase in his overall investment in the market. It leads to more volume and therefore more amount of profit and a strong portfolio.
The traders who deal in bulk knows the system well, and they hardly need any assistance from the broker other than the payout regularly.