You Need To Find A Good Discount Broker For Your Trading

 Every trader in the share market dreams for maximum profit. However, with every trade, he has to bear some costs also and hence it is much required to control the cost first. Once the cost of trading is reduced the profit can be increased automatically. Among different expenses that one has to bear for trading, the main expense is of brokerage. It is the charge that one has to pay to the broker who offers trading services to the trader. In the market, one can also get some brokers who offer a discount on this charge. They are known as discount brokers.

The discount brokers and their services:

The discount brokers in India are available in limited numbers. The traders who go for the bulk trading on a regular basis love to hunt for such brokers as they can get a huge benefit of saving a good amount on brokerage with the help of these brokers. To get the benefits of a discount in brokerage the trader needs to get a trading account opened with the concerned broker. The broker and trader can agree on a specific rate or amount of brokerage that the trader will provide to the broker against the services of trading offered by the broker.

Some important parameters:

For a broker, this is his income and hence he can compromise with it only if he can get some more benefits. Hence there are certain parameters according to which the brokers decide if they will offer the services to the concerned trader or not.

  • Huge volume: The trader must be dealing in a huge volume. This turnover must meet the requirement of the broker so that he can have an idea if the services offered to the concerned trader will fetch the desired revenue or not.
  • Low rate of brokerage: The trader can have the biggest benefit in the form of a low rate of brokerage. The volume-based traders may have to face a situation where they need to go for the reverse trade and earn small profit only. In such a situation the normal brokerage rate may wipe off the profit but this does not happen to him he has gone for the services of a discount broker.
  • Effective services: The discount brokers have clients who deal in bulk trading only. Hence they know what services such traders need. They offer classic services for trading in bulk. Hence the bulk trader can have ease of trading on their platform.
  • Good exposure: The discount brokers deal with bulk traders and hence they offer good exposure to the traders on their margin fund. This proves beneficial to the trader as well as the broker as the trader can easily go for the bulk trades even if he does not have huge margin money while the broker gets a handsome amount in the form of brokerage as the trader deals in bulk only.

Due to such benefits, the discount brokers are much popular among the bulk traders.

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