In almost every sector of life, one has to get engaged in an activity for the full time to earn well. However, despite full-time activities also there are many people who are not happy with the earnings, and hence they keep on hunting for some activities where they can earn well in limited hours also. Trading in stock market is one of such areas where one can have ample income if he has sufficient knowledge and thorough understanding of the market movement as well as price trend.
With a little amount of money and a demat as well as a trading account one can start trading in this market. However, there are certain criteria where one has to define activities. He needs to decide if he wants to go for an intraday trading or delivery bases. Before choosing any of these options, he needs to choose if he wants to go for cash segment or derivative. For effective trading and good profit one needs to control the expenses as well, and hence he needs to go for the low brokerage demat account as the brokerage is the main expense in trading.
The brokerage:
For a trader as well as the broker, this aspect matters a lot. The foremost important point here is it is an expense for the trader and income for the broker. Those who want to save this expense ask for the low brokerage charges to the broker, but if the broker allows it, he may have to lose the revenue and hence he also cannot allow the same. As there are many brokers active in the market, one can check the brokerage rate from different brokers and see if any of them is ready to offer low brokerage charges.
The brokerage is usually a standard rate that the brokers charge from the client. However, there is no fixed rules and regulations for the same, and hence they charge as per own plan. There are many avenues where the brokers are forced to compromise with the rate of brokerage also. The clients who love to get the account with low brokerage must check such cases and see if there is any broker who is ready to offer an account with low charges.
The online account is one area where the client can get the account with low rates. Here the client needs to manage his trading and account on his own. He has to pass the transactions and monitor if the trade hits or not. He needs to get the credit opened and see that the profit booking or stop-loss limits are set. Hence those clients who go for high volume trading needs to keep a watch on the market as well as his account. He does not get any support from branch or terminal operator. In such case, the brokerage may be reduced. Some brokers offer the offline account at reduced brokerage if the client offers a huge margin money of his volume of trading is high that can fetch more brokerage to them.