The name share market fascinates a number of people who dream of earning profit with a little amount of investment in terms of money and time. The trader needs to have some knowledge of the trading and operation of the bolt with the help of which he can do well in this market. However, before going for the trading one needs to have a trading and demat account with any of the leading broker or broking firm. This is mandatory for everyone in the market who wants to trade or invest here.
The Demat account can be opened with the help of any broker, but ultimately it can be with either NSDL or CDSL only as these two entities are only allowed to open the demat account. To open these accounts one needs to provide KYC documents with margin money to the broker. The broker helps to open the account and trade with the help of the trading account of the client. For rendering this service, he gets income in the form of brokerage. For a broker, it is an income, but for the client, it is an expense and hence like normal rules of the business world one needs to keep the expense minimum it is necessary for the trader to get the best broker in India who can offer the services at a discounted rate.
Why one needs to go for a discount broker?
The discount broker acts with low charges for the trading facilities compared to the full-service broker. The full-service broker charges high, but he also offers services such as advisory and investing. The traders who love to have intraday trading do not prefer to go for such services and hence for them the broker with low brokerage charges is only good.
While discussing the discount broker one needs to understand how he works. There are many brokers in the market, but most of them do not offer a discount or ready to offer services at a low rate. They consider themselves as a full-service broker, but many times the traders who want to go for bulk trading and do not want any services other than the trading may not be ready to hire such brokers. For them, the broker who offers a discount in trading proves much useful.
The discount brokers:
These brokers do not offer services such as advisory and investment, but they focus on trading and prefer to offer the services to the bulk traders only. They offer account opening as well as trading facilities on offline and online modes. They have good services as far as the trading in the live market is concerned. Their services can help the bulk trader save the brokerage amount and reinvest it which can lead to more profits in days ahead. Hence gradually the volume of the trader keeps on increasing which gradually increase the turnover and hence brokerage to the broker also. Hence a discount broker is an important player in the market.