The role and significance of stock brokers in India

To earn handsome income the business is considered as the best option. There are ample businesses in the market from which people make money. The share market is one such important place where one can trade and earn good revenue. The market here has various options in which one can deal. For trading in this market one has to open a demat and trading account which can help the clients to trade well and earn profit as per their trades. For every client the broker is the point of contact who can help him in numerous ways. Hence one who wants to go for any segment in trading needs to have an account with any of the stock brokers in India.

The market and segments:

In the stock market the segments for trading are cash and derivatives. In the cash segment if one wants to trade he can trade in intraday or delivery options. For the traders who want to make quick profit the intraday trading is the best option where he needs little margin and the profit can be made in trading of a few hours. For the traders it is easy to buy the shares in the market at low rate and sell them at a higher rate when the rate goes up. The stock brokers in India can help a trader in his trading from opening of account to trading in the account in any segment. However, for this one needs to find the right broker who can offer services at low rate of brokerage and also offer good leverage. For every trade by the broker for a client there is a brokerage that the client needs to pay to him. This brokerage is the main source of income for a broker. The market has no fixed rate of brokerage and hence the brokers charge the amount of brokerage as per the market practice.

The brokerage:

The trader can check the rate of the brokerage from different service providers. There are brokers who charge the amount as a lump sum for the total transaction value while some service providers also charge it as a fixed amount and that too in advance. It is only for a limited time and after that one needs to pay the brokerage again. Most of the brokers go for a fixed percentage on the total value of transaction. One can have better brokerage rate if he can prove the deal to be a beneficial one to the broker.

The broker always looks for the clients who prefer bulk trading and hence those who go for volume need to have low rate of brokerage. A prudent broker can know this and offer the best rate that can help him as well as the trader in the market. With the help of the low brokerage the client can have more trading which can ultimately help the broker only as he also gets more revenue in terms of increased brokerage.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top