Get the best services at the least cost
Getting the best services is always a priority for every client in the share market. Many options are there when it comes to trading. It depends on the profile of a trader if he wants to go for the intraday trading or future and options as well as delivery based trading. There are many brokers and broking companies in the market which like to have more clients on their platform and help them in trading in the market. As per the universal low, nothing comes free; one has to pay certain charges for using these platforms also. The charge that one has to pay here is termed as a brokerage.
How to calculate the brokerage?
One can find several brokerage calculators available in the market. The maths here is very simple. There is a fixed percentage of brokerage which is decided between the client and the service provider broker. Every trade has a transaction value which includes the amount of buying and selling. The total here is considered as the base on which decided percentage applies for the calculation. Hence here one can understand that the rate of brokerage is the key factor that plays the main role. The lower the percentage of brokerage lower is the overall amount. Due to this the normal traders who trade once in a week or a little amount daily, do not get affected but for the bulk traders, this can be big trouble, and hence they prefer to have services from some of the best discount brokers in India.
The discount broker:
Though the market has normal brokers, the services of discount brokers are different to a certain extent. They offer the account opening and trading services to the bulk traders only. As they charge a low amount of brokerage, there is nothing wrong that they need a volume so that their revenue can be maintained. The trader who goes for volume based trading, the low brokerage can be much required as a high amount of brokerage may take away his profit also. He needs only broking services but at a moderately low brokerage.
Hence on this platform, the trader who deals in large volume and the discount broker shakes hands which prove useful to both of them. The discount broker also offers offline trading to a client, but again the condition is the same as the trade must be in volume. The trader can go for the saving of additional brokerage and start investing the same in the normal market that can help him get some more profits, and the broker can get some more revenue as a part of brokerage. In a short span, the whole circle is made where both of them can find the situation much beneficial as the trader can also earn more profit with more turnover while the broker can earn more revenue with more brokerage.
Hence the services of the discount broker differ from the full service or normal broker who can help the traders who aim to have trades at less charges and get them as a sound support system.