Business
Get the charges reduced and profit increased
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.
