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discount brokers

For those who want to take the stock trading as a main or side business, it is necessary to consider various factors before initiating the trades in any segment. The stock market has segments such as cash and derivative where one can find good opportunities of making quick money if he has sufficient investment and knowledge as well as resources.

The foremost requirement for any trader is a trading and a demat account with the help of which he can trade and hold the shares of different companies. The simple rule of the business of getting the product at a low rate and selling the same applies here also. The trader needs to open these accounts with any authorized broker who is affiliated with any licensed broking house or company. For the best services, one can open an account with a stockbroker who falls into the top 10 stock broker in India.

The services:

Here one may have a question that why one needs to go for any of the leading stockbrokers of the country? Well, these stockbrokers have proven record of offering the best services to the clients in terms of not only trading but also research and analysis which are much important factors for any trader who want safe and effective trading at much cost effective rates. In the stock market, one can find discount brokers as well as full-service brokers where the primary difference is of the services. In the case of a discount broker, one can find only trades with low brokerage rate while in the case of full-service broker one can have other services as well.

The brokerage:

For every trader irrespective of his trading pattern or volume, the brokerage is an important factor. It is a charge that the trader needs to pay to the brokerage and it is decided in the early stage of the relationship between the client and the broker. For the traders who deal in large volume, with the turnover, the overall charges of broking also increase, and it affects the earning to a considerable extent. Hence the trader prefers to open a trading account with any broker who can offer the services at low brokerage rate. For a broker, it is an important charge as it is revenue for him and hence usually no broker prefers to offer a discount to the client in brokerage. However, due to various reasons many times the broker has to compromise with the broking rates also, and this can prove much helpful to the traders as well as a broker.

There are some factors that affect the brokerage rate from broker side are a new branch or new business as well as bulk deal. If the broker finds an account helpful to him in the generation of significant revenue even after the discount, he can allow the same. Here one must note that a standard broker who has a franchise of any broking company or broking house, has limited authority to offer a discount but there are some brokers in the market who can offer the services with low brokerage also.

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