There are some people who love to trade in the stock market. It is an area where one
can start trading with low investment and can earn ample amount if he has a
strategy and knowledge for the same. There are various segments in the market
which are known as cash, derivatives, and
F&O. However, in the stock market to trade one needs to have a trading
account with a valid service provider. There are many service providers who
offer online as well as offline trading accounts to the clients. However, at
the time of opening the account, the
client needs to agree to the rate of brokerage. The
service provider charges the brokerage for providing service as it is the main
source of his revenue.
The charges:
Different service providers charge
different brokerage rates. The brokerage charges have huge effects on the
trader’s income. Hence he needs to calculate the brokerage every time. However,
after a few transactions, he may be used
to calculate the amount easily. One can also download the brokerage calculator online for ease of calculation. It is an expense for
the trader, and hence almost all the
traders try to have a scheme where he can save this cost to certain extent. However, there is not much scope to get the
zero brokerage plans because if the service provider will not get any revenue then how will he survive in the market
and from where he can pay to his staff. However,
in a few cases, the companies offer such
schemes for a limited period.
Why the companies offer such schemes?
There are various reasons that companies or service providers
launch such schemes of low brokerage. There are numerous service providers in
the market who offer online as well as offline accounts to the traders. For a
service provider, the trader is the center of his activities as because of his
trades only the business can run. Hence usually a service provider does not
compromise with the brokerage. However, some time to have a considerable client
base in a limited span and make the center
profit center some of them offer low
brokerage or no brokerage schemes. For the
trader, it is essential to reduce the brokerage charges as they are
expenses which can restrict the profit or increase the loss. There are various
points that as a trader one needs to consider. The offline account in which one
can have the support of the terminal operator charges higher brokerage which
can be avoided if one goes for the online
account. In the online account, one has
to trade on his own with the help of own computer and internet connection.
Hence it can be helpful to the trader who has high volume. In many cases, the client who offers a huge margin
cheque is also offered low brokerage scheme by the service provider. In such case, the trader needs to be alert as there are
some terms and conditions from the service provider which may bring huge
changes in case of limited transactions.
