The role of stockbrokers: Know it first

The role of stockbrokers: Know it first


For those who have some information and knowledge about the economy as well as corporate and finance it is easy to deal with the stock market. In the stock market, one can go for intraday trading if he wants to make some profit on a daily basis. It is a good option of earning for those who want to have some side income as it can be done with a low capital and just a few hours of work. With the help of modern technology, one can easily check the prices of shares of any company. 

How to trade in the intraday trading?

Well, it is not a rocket science at all. One needs to have an online or offline trading account and a demat account. The trading account is for the day trading while the demat account is to keep the shares that are bought and held for a long term. Usually, those who prefer to invest the amount can go for the investment and get the delivery of the shares. The companies can provide dividend on this investment when they declare it. This is a long-term option to get the benefits but if one wants to get the profit in the short term, the day trading is the best way. However, one needs to carry out the trades only with the help of proper research only and not by relying on others blindly. 

The brokerage: 

For any trader, the trading account with low brokerage can be much useful. It is a charge for a client, but income for a broker and hence no broker offers a trading account with a reduced brokerage. However, under certain circumstances, a broker or a broking firm can allow the client to have an account with a low brokerage. To get the discount brokers India one needs to check such brokers. Here are some cases when one can get the account with a low brokerage. 

  • The broker may offer a low rate of brokerage if he feels that the client is genuine and a bulk trader with the huge volume on a daily basis. In such situation, he may get more profit even with the low rate of brokerage as the volume is large. The client can negotiate the rate of brokerage on the basis of his volume. 
  • If there is a group deal: If the broker sees an opportunity to get the accounts of many people in a single deal he may offer low brokerage as there are two direct advantages to him. First, he can have a huge number of clients and second he can get a good amount of margin money as well as traders that can help him to get more profit.
  • The new area or new branch: In many cases when the broker opens a new branch or a new office he tries to get more clients. To attract more people, he may reduce the brokerage rate so that those who trade with high brokerage may easily move to him and start trading with him.

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