Thursday, June 7, 2018

Hire the right broker for your trading

For a trader, there are some important decisions he has to take before going for the trading and while trading in the live market. From the opening of a demat account to trading account and finally settling the account involves a number of processes where one has to be careful else it can be harmful to his financial profile. One must know what will be charges for brokerage as well as account handling before opening an account with the broker. Another important question one must ask himself is if he wants to go for an offline account or online one.

What can be better? Offline account or an online one?

The brokerage: The brokerage is an important aspect one cannot neglect at all. One can find traditional brokers and discount brokers in the market. Both of the brokers have pros and cons which may prove asa determining factor for any of the traders. The trader here needs to know if he needs better full services or lower brokerage plans without any other services from the brokers. If one wants to save the charges on brokerage, it is better to go for the later option only.

The offline account:

The offline account is the one in which the client does not hold any command on transactions. He needs to call the bolt operator and ask him to buy or sell shares in his trading account. Hence one needs to depend on the services of a bolt operator here. The best part of this service is one does not need to have any computer or internet connection. He needs to make a call only to the operator and rest is managed by the operator. The limitations here are if the phone of the operator is busy one may lose an opportunity of buying or selling. The trader has to depend on the operator,and hence he does not know much of his account. In case one does not see the live market, he may also lose an opportunity of trading in some shares.

The online account:

This is an account where the client can command his account completely. He can pass the transactions on his own and also check his account as well as the balance. He can pass the transaction the moment he feels to have it. He can also take the decision immediately and act on it accordingly. The client can know his account and balance the same as and when he feels it. He can also place the request for payout as and when required. One can go for the transaction himself or hire an expert for the same.

The biggest limitation of this account is one needs to have resources such as a computer or a smartphone with an internet connection. One also needs to know how to manage the account and place the order as well as limits. One must have time for watching the market and decide in which segment he wants to trade and by when he needs to what.

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