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A Penny Saved is a Penny Earned



For a trader, every rupee counts while he is trading in the share market. In many trades, one has to move out of the trading with a gap of a little amount only. In such situation, if one has to pay a high amount of brokerage, even the trade which can offer profit may also turn into losses. To avoid such situation, every trader looks for some of the brokers who can offer the services at a low brokerage rate. For a trader, it is an additional expense that he needs to keep under check and hence only a discount broker can prove helpful at such a stage.

The discount brokers are those brokers who offer the trading account and charge the brokerage which is much low compared to the full-service providers. The full-service providers are the brokers who offer the services of advisory as well as other investment to the client in addition to the services of trading. Hence such a broker does not allow to havea low rate of brokerage. With the discount brokers, one cannot expect any other type of services as they don’t offer such services at all.

The brokerage:

The brokerage is the charge that is to be paid by the trader to the broker. In the absence of any standard rate of brokerage, the trader may have to pay a high rate of brokerage and every broker likes it. But those traders who are experienced do not allow such a broker,andon the basis of their regular turnover, they negotiate the rates with the broker. In some of the cases, the broker has to offer or accept the offer a low rate of brokerage,but it is restricted to a few cases only. Below are some of the cases where the broker has to offer low rates of brokerage. 

How the discount broker differs?

Well, in the market one can find a discount broker as well as a full-service broker. Here the discount broker is concerned with the brokerage and its related service only. He offers the trades at a low rate of brokerage which the full-service broker cannot afford also. The full-service broker is the one who offers services for investment as well as advisory services. Such a broker has ample resources with the help of which he can guide the client and trade him well in the situation of the volatile market also.

The types:

In the market, one can find different brokers with different brokerage plans. Some of them also charged the brokerage for a fixed period as a fixed amount which the client needs to pay in advance. In some cases, one has to pay regular brokerage also where the broker adds the amount in the invoice of the share transaction only. Once thisis done, one does not need to pay any extra brokerage as it is calculated on the turnover of the sales purchase of the market. One can check the same in his bills also.

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