A stockbroker is a key person for the traders. There are many useful services offered by this professional who is authorized by the exchange or some of the broking house. He has a terminal with the help of which the trading in a live session is made possible for the traders. In the traders also there are two categories. One is the trader who rarely trades in the market or trades at a low level. Hence he is not concerned with the brokerage rate much. Another is a bulk trader who deals in large volume and hence he has great concern with the brokerage rate.
For a trader, there are two options in the market when it comes to trading. They are delivery based trading and intraday trading. In the intraday trading, the trader needs to go for the buying or selling of shares in the same trading session and cannot carry them forward. If under any situation the trade is carried forward, it converts into delivery based and one has to pay the amount to the broker to the extent of the bill. In the intraday trading, the brokerage amount is low while in the delivery based trading, it is high.
The delivery based trading is the one where the trader can buy the shares today and ready to pay the due amount to the broker. Hence those who want to invest in specific shares, love to go for the delivery based trading. This trading style is believed to be for those who want to invest and not trade.
Get the best broker:
A trader who looks forward to trade in volume needs to go for the top 10 stock brokers in India who can offer him services of trading at a discounted rate. For the traders, the charges which are required to be paid are a cost and those who want to have more profit need to reduce the same. Among these charges, the major contributor is the brokerage. Hence for every trader getting the right broker is very important. One can find a full-service broker or a discount broker.
The full-service broker offers a variety of services and hence does not compromise on the brokerage rate. The discount broker is primarily concerned with the revenue that generates from the trading of the client only. Hence if the trader goes for more brokerage, he can have more revenue. For this reason, he offers a discount in brokerage so that the clients go for more trading. This also leads the client to have more profit as he can save a good amount in the form of brokerage.
The saved amount is reinvested by the trader in the market, which leads to a significant increase in volume and a considerable amount in terms of revenue for the broker. These brokers do not hesitate to offer a low rate of brokerage but what they aim is the turnover, and hence those who can go for the bulk trading, the broker is happy to offer his services.