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Know your trading and brokerage charges before trading

There is a myth in our society that in the stock market one can easily make money. It is true that one can earn well in this market, but for that, he needs to have some knowledge as well as decision-making power that can convert the trade in the transaction. Hence just opening a trading or Demat account with a service provider is not enough to earn. One needs to know the market sentiment and trades according to the changing trend locally as well as globally.


The brokerage:

One also needs to know what sort of stocks he is dealing in. There are cash, currency, derivatives and commodity markets and each of these markets is different from each other. Hence knowledge of one segment may not be sufficient if one wants to deal in another market. One more important part is the brokerage charges. In the cash segment, the brokerage is fixed on the basis of a percentage of the value of shares that are traded. In the derivatives, there is lot size, and the brokerage is fixed on each lot. Hence if one wants to earn more, he needs to check for the best low brokerage trading account so that the expense can be controlled which can help to increase the profit to a trader. Over a period this controlled expense can lead to extra money in the trading session, and hence one can trade in more securities than before.

The online trading:

With the change of technology and time, the online trading is more popular as it is much helpful to all the big traders who go for a number of trades in a day. For them, it is much important to see the market and keep on checking the positions to decide if one needs to hold the position or need to square it off. In such situation, the online trading offers him a complete command in his hands only. There are also many firms which offer the lowest brokerage in India for online trading and hence the trader can have more opportunities to have increased trading that can lead to more profit. With the online trading, the trader can monitor the market every moment and take actions as per the need of time. However, in the case of any technical issue, he can surely call the customer care of the service provider, and the help is extended to him. There are also many service providers who offer fewer brokerage charges in case one goes for the online trading as it reduces the burden of trades on the terminal operator.


However, for the online trading one needs to have an active internet connection with good speed as well as a computer. Hence it requires additional investment on the side of the trader. In a nutshell, it can be said that if one has a huge volume of trades he can go for the online trade else the client with the low volume can go for the offline trading only. 

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