For a trader, the profit maximization with every trade is the prime motive. The market has various segments where one can trade if he possesses necessary skills and quality with knowledge of the field. There are many aspects of trade that one needs to check before going ahead for the same. The market offers segments such as cash and derivatives where the trader can trade and earn good profit. In the cash segment also there are two segments such as intraday and delivery. In the derivative segment also there are two sub-segments which are known as future and options.
For a trader, as per the SEBI, trading is possible only in the trading account. Hence one needs to get the best discount broker in India who can help one with account opening as well as trading. The biggest point one needs to consider is the brokerage as for every trader it is an expense. Hence it is necessary for a trader to save considerable amount only by trading with the discount broker. Here one must know that there are two types of brokers which are known as a discount broker and full-service broker.
The full-service broker:
A full-service broker is one who is capable of offering numerous services to the client. These services primarily include trading, advisory, investment and research services. As the client may be new and not having much knowledge of the market, the service provider helps him with different features of his services including advisory. The rate of such broker is a little high,and hence a trader with huge volume cannot prefer to go for this service.
The discount broker:
The discount broker is primarily concerned with trading only where he charges a nominal charge for trading. In the market, there are a few operators who offer services in this segment. They have various methods of charging the brokerage. Some of these brokers charge the brokerage on a trade while a few also charge it as a lump sum charge. For a trader who trades in large volume saving on brokerage though such medium is very important. For a casual trader also this can be a viable option where he does not require to pay heavy brokerage for just a few trades.
Getting a discount broker is not that easy as usually, the broker does not compromise on this front. Hence one has to go for a few options to search a right discount broker. The personal reference is the best option for one who seeks such a broker. Another option that can help one is search on the internet. Some of the brokers who offer a discount in brokerage may not have a branch in the city of the client,but the client can go for an online account also and take benefit of saving on brokerage. Before going for any broker or any trading account, the client must read the terms and conditions related to the brokerage charges as later it can be a point of debate between the service provider and client.