Business

Get the charges reduced and profit increased

1/25/2018 Lokesh kumar 0 Comments

The share market is a leading platform that can help one earn side income with the help of trading. The traders here can go for the trading activities in any of the segments from cash and derivative. However, before jumping into the ocean of share market,one must know about it. This platform offers the opportunity to profit,and at the same time, there is a risk of loss as well. As it is a business, one needs to keep prepared for both of these probabilities. However, to avoid loss, one needs to trade carefully.

The transaction:

In the market, there are cash and aderivative segment in which one can trade and earn. Before going for the trading in any of these segments, one needs to have at least a trading account and a demat account. The trader, in case of not having an account, needs to get the same opened. He can check a few of the service providers and check all the rates as well as required documents to open the account. One needs to check the brokerage rate of with a service provider as for a small trader this can be a cost that can wipe off the profit also. One needs to check for the lowest brokerage trading account before applying for account opening to any of the service providers.

The brokerage is charged in different ways by the service providers. One can go for any of the plans which can prove much cost effective to him. The brokerage is a sensitive issue,but there is no way out for the trader to avoid it. For service provider also it is of much importance as it is the main option from which he gets the revenue. Hence he does not accept any such scheme which can affect his revenue from this source.

What can be the best brokerage option?

In the market, one can find the service providers who charge brokerage in different ways. The standard practice is usually billing the amount with the brokerage added. However, some of the service providers ask for advanced brokerage and offer different options that can help the client as well as the service provider. The percentage of turnover is the most common system of charging the brokerage. One can get the bill where there is the amount of shares is mentioned,and on the total amount of shares, there is brokerage charge added as a certain percent of the bill amount. The percentage of brokerage varies from service provider to service provider.

In another system, there are also a few service providers who ask for advanced brokerage which is a fixed amount and the same taken by him through a different cheque. This amount is for a specific duration only,and within this duration, the trader can go for any number of trades in the market. Some brokers also offer a discount to brokerage in case the client prefers to go for an online account where all the transactions are carried out by himself only and no branch support is required.