Though the word brokerage may not be a common term for a novice, it is a regular word for those who deal in the stock market. For a trader who depends on intraday trading for good profit the amount that he has to spend in the form of brokerage matters a lot. In the industry, there is no specific rate and hence every broker or company involved in broking charges as per own rules. Hence for such trader it becomes difficult to earn a good profit as many times he may have to square off the position at the almost negligible gap, and in such situation, the brokerage amount can be a burden on him.
For many brokers, the client who goes for bulk trading is important only because even if a minor amount they can prove as good source of earning for them and hence they hardly compromise with the rate of brokerage. However, in the market, there are also discount brokers available which can prove much helpful to such bulk traders. The trader needs to know the ins and outs of such discount brokers India before initiating the trading with them.
Why is it important to have low brokerage?
Those who deal in the market with one or two trades once or twice in a week, the charges to be paid in the form of brokerage do not matter much. For the traders, who deal in the intraday trading on a regular basis and that too with a huge volume, every penny matter. For them, the rate of brokerage can be a significant area to have a watch on. Those who offer a discount in brokerage can prove helpful to such clients as they can save handsome amount which they have to pay as a part of the brokerage to the normal broker. In such a scenario, each bulk trader prefers to go for the broker who takes nominal charges as part of his brokerage service and facilitate him for effective and regular trading in the market. One can find that the full-service brokers in the market offer good services but they charge huge amount as part of their services and hence the bulk traders do not favour them or can say cannot afford them.
For such traders, the discount brokers can be the right option even if they do not offer many other services which the full-service brokers offer, but they can help the client save on the charges of brokerage that can be important for the client.
It is obvious that every trader loves to have a look at his benefits only and hence cannot go for the broker who offers somewhat same services yet charges heavily as brokerage. The discount broker helps one to save brokerage which can be the biggest advantage to the client. Rest all the benefits offered by this broker are also as same as the normal broker, but a discount broker does not offer the services such as guidance to the market or advise as well as facilities to invest in other options.