The Best Help You Can Have For Trading
Share trading is a profit-making activity for those who know how to trade in the market. The market has various segments wherein one can easily deal and make money if he has sufficient knowledge of the market and trading. There are segments such as cash and derivatives where the trader can trade. Both of the segments have their own pros and cons, and one needs to check them before initiating trades in any of these segments. The trader must understand that there has to be a trading account in his name in which he can trade. Such a trading account can be opened with any of the reputed brokers in the market.
The broker:
For trading, one needs to check if an online account will be feasible for him or offline. The trader, at this stage, needs to consider a lot of factors which include his time, trading style, volume, support required from the trader, and many more. One also needs to decide if he is required to go for intraday trading or delivery. In the case of delivery trading, one has to invest a considerable amount which may not be that helpful to fetch desired profit also. Here one can earn a dividend from the company as well as other benefits such as bonus shares or splitting of shares. Another option left with one is intraday trading where one has to buy and sell the shares in the same trading session. In case one does not square off the position he may have to take the delivery of shares. In such a case, one has to pay the broker the pending amount of money within a couple of days. If one is sure about the concerned trader in the intraday, he can go for the same.
The service:
One needs to open an account with any broker to trade in the market, and for this, the broker charges some amount which is known as the brokerage. This charge of a regular broker is quite high compared to the discount brokers. The discount broker in India is one who offers trading services to the client at a low brokerage compared to the brokerage charged by the full-service broker. The full-service broker offers other services such as advisory and investment to the client which is not the case with the discount broker. Hence one can consider such a broker purely related to the trading activities only. There are also various types of brokerages charged by discount brokers. Some of them charge the brokerage as a percentage while some also charge the same as a lump sum amount on the trade. In some cases, there is also fixed brokerage which the client has to pay monthly irrespective of the amount and volume of trades in the market. Hence as a prudent client, one must go through the terms and conditions of the brokerage as well as rates so that he can plan his trading strategy and a number of trades accordingly.
