In the world of the share market, one can find ample opportunities to make a profit, and at the same time, there are points when a loss cannot be avoided. However, if one goes as per the market rumours only, there are chances of making a loss. One who wants to make a profit needs to look at the factors that affect the trading and price trend before going for any sort of transaction. Many of the traders believe that there is no certainty of any incident to happen or not to happen and hence it is pure luck if one can make money in this market or not.
Before thinking about trading in this market, for a potential trader, it is important to know all the factors that can lead to profit or loss. It is much required to have a trading and a demat account with any broker or broking company. The charges associated with the trades or accounts also need to be considered while going for it. This helps one to have aclear picture of profit or loss after a transaction. In the absence of this fact, one may find the picture glossy which can suddenly change to gloomy.
If the expenses on every transaction can cut down, one can earn good profit in this market as well. That is the reason why many traders prefer to have online discount brokers as they can help to reduce the expense of brokerage and make the trader earn well.
How to get the discount on brokerage?
Doubtlessly there are numerous brokers in the market with whom one can get an account opened,but the brokerage is such a point where almost no broker is ready to offer adiscount. Here are some cases when the broker may feel to offer a discount to the client.
- If the volume of the trading is too high: If the broker feels that the client who is seeking brokerage has ahigh volume of trading in intraday or delivery and even if he offers adiscount, he can still earn well, he may offer some discount in the brokerage.
- If the number of accounts is huge: In some cases to increase the client base and add numerous clients at a time one may offer the discount to brokerage so that the new clients can also go for the trading and hence overall revenue in the form of brokerage may increase.
- If the client prefers an online account: Many brokers allow a client low brokerage if he goes for anonline account where he will only carry out the trade on his own,and no support from the branch will be provided unless it is an emergency.
- If the broker is new to the area: A broker who has just started the business in a new area may offer a discount in brokerage so that number of clients can join him and the business may start generating revenue. It can also help the business to sustain and grow in a short span.