People who deal in share market know the term brokerage which has huge relevance in the market. It is a cost for the transaction that offers revenue to the broker irrespective of the fact whether the trader has made profit or not and got the transaction such as buy or sell. Due to no fixed standard in the market, the brokers who offer full services charge anything as per their will. For a trader who deals in bulk it is not possible to bear the high cost of brokerage as many times he may not have earned a single penny from the trade also.
In such a case, the trader needs to find a discount broker who can work at nominal brokerage and help the client get the trading regularly. To have the best discount broker one can check with the top 10 discount brokers in India who can help one in trading and earn good profit. Though the market has no shortage of such brokers also, one needs to check the services of the broker which is much important during the trading session. One may wonder that if the trader goes for volume based trading why he cannot pay higher brokerage. Well, many factors affect the decision of the trader while he is playing in the active market session. Due to the volatility of the market, sometimes one has to clear the position immediately, and at such stage, the brokerage can be troublesome, if it is higher.
The trading and brokerage:
The traders who want to make money in a short time as a result of their trading in the market prefer to go for the option of intraday trading. Doubtlessly in this segment, one has to trade carefully as a wrong trade can also create havoc for the trader. One needs to settle the account of shares bought and sold on the same day only. Hence the number of transactions in this trading is always high. Those who go for intraday trading need to keep the brokerage in mind as one may have to settle the position with a narrow profit margin also and if he has to pay a high amount of brokerage than he may make a loss due to brokerage and not the transaction. For a trader who deals in little volume may not take the brokerage amount seriously but for the bulk trader, it is much important.
The role of the discount broker:
Bulk traders prefer to hire the services of a discount broker who is ready to work at a low rate of brokerage compared to the full-service broker. The difference of service offered by the discount broker does not matter a lot for the bulk traders as usually, they trade on their own only. However, one cannot expect full service from the discount broker also. The low rate of brokerage can help the trader save a lot of amount on a regular basis, and that is why for the bulk trader the discount broker is more important than the normal full-service broker.