The stock market can help a number of traders who love to keep on trading in various shares of different companies. There are some basic requirements that one needs to fulfill to start trading in this market. One needs to have a Demat account and a trading account with any of the broker or broking company that is authenticated by the SEBI which is a regulator of the market. As far as the trading in concerned it is much important for a trader to have thorough knowledge and skills to identify the right moment when to hit which type of trade.
In the market, one can go for cash or derivative segment for trading. In the derivative, there are call and put options while in the cash segment there are intraday and delivery options. The Foremost important point here is to get the account with the best stock broker who can help to operate the account well. Usually, each trader loves to go for a broker who charges less brokerage, but there are also many other facilities that one needs to look at other than the low brokerage. These features include the credit limit, settlement period and research as well as tips provision. Nowadays as almost all the transactions are online one can see the bills on the screen of the computer, but there are yet some brokers who send physical bills. This can help the people who are not much comfortable with paperless transactions.
The brokerage is an aspect that every trader needs to check once. If it is high in the amount, it can lower the profit while if there is a loss, it can add to the loss also. Hence one needs to check the rate of brokerage first. Being an important part of the market, one must know about the brokerage, its rates, and types. In the cash segment there are various options, the brokers charge this expense for the trader. Some of the brokers fix a percentage that is charged on the turnover of every trade. Some brokers love to have a fixed amount irrespective of the volume or turnover. For a broker being it the major source, it is ideal to have better brokerage charges levied on the trader but the opposite side for a trader; it is better to have the least charge of brokerage as for him it is an expense.
Some of the brokers may also offer discounts in the brokerage in certain conditions. A broker, who has just opened a franchise or a branch, needs to have more clients in short period so that the branch can make a profit. In such case to get more clients the brokerage rate may be reduced. If the client is a cream client with a huge volume or turnover on a daily basis in the intraday as well as delivery trading, the broker may offer some discount so that despite low brokerage rate he can make some more profit with the help of increased turnover of such client.