For one who wants to have a side income which can help him get better earning, the share market can be a good option if one knows about trading and market. To have trading in this market one must have a trading and a demat account first. One cannot trade in this market without these accounts as per the norm set by the market regulator. The traders are also of two types which are casual trader and bulk trader. For the bulk trader it is necessary to have lowest brokerage trading account as he trades in volume and hence at normal rate he has to pay hefty brokerage.
The rate of brokerage:
For one who hardly goes for a few trades a day the rate of brokerage does not make a huge difference but for a bulk trader it can be a serious concern. Bulk traders need high speed transaction platform, more leverage on margin and also low rate of brokerage. As they deal in bulk in many cases they have to set off the trade with a narrow margin also. In such situation high rate of brokerage may land them in loss. In case of low rate they can save good amount on the front of this expense which can make them have better portfolio and probability to have more turnover. This can help the trader as well as the broker to have better revenue as the turnover of the trader increases, the revenue of the broker in the form of brokerage also increases even if he offers a discount. Hence it can be a better option for both parties.
Online trading:
For the traders who are familiar with online trading, it can prove a viable option. In this option they can carry out the trade on their own with the help of a smartphone, laptop or a desktop computer. However, he needs to have strong internet connection and thorough knowledge of operating the software to trade online. He needs to know how to set limits, book profit and cancel order as well as place order. In this era of technology usually people have hands on experience of operating such software and hence it cannot be a big deal for any trader. Here one needs to note that he must keep an eye on market while session is on and check balance as well as position so that right decision can be executed at right moment. Another benefit of the online trading is many of the service provider offer low rate of brokerage if the client prefers to have trades online. Hence one can also save a good amount on brokerage also.
In short one can say that the online trading can be helpful to those who want to go for bulk trading and make money in a short span. The rate of brokerage which plays a significant role also supports the client if he goes for such type of trading. In market almost every company offers online trading platform which is highly efficient.
