For any trader, the prime motive for trading is getting more of profit. The share market is known for its volatility,and therefore one needs to keep an eye on the price movement during the market hours. As soon as he can see that prices are increased, he must book the profit by selling the shares purchased at low price. Hence he can earn good profit in different shares. However, there is a trouble for every trader here. This trouble is known as Brokerage. It is a charge that the broker has to pay for every trade irrespective of his profit or loss.
The brokerage many times reduces the profit or increases losses. Hence what a trader looks for is a broker who can offer the services for trading at low brokerage which is also termed as discounted brokerage. For such services, only the brokers find the best discount broker in India. The discount brokers offer best of the class services as far as the trading is concerned. However, a majority of them do not offer other services such as advisory and investment. For any trader, to have the discount in brokerage matters a lot and hence even though they offer only services for trading, many of the traders love to open an account with them and earn well as a part of trading as well as saving on brokerage charges. However, the market has different types of brokerage,and every broker offers a rate of brokerage that fits the profile of the client.
Why a broker has to reduce brokerage?
There are numerous points one has to consider before accepting or rejecting a proposal. A broker checks the profile of the client on his end,and if he is a regular client, the broker will not be ready to compromise on brokerage charges. He must find something that can add to his profit,and if the client offers a huge turnover, he may find such value in his profile. Hence a broker can provide a discount to a trader if the volume of trading is large.
If a broker is new to the area of the business or he has opened a new branch, he needs to have a huge client base which can help the unit to be a profit center in short span. In such scenario, he has to offer a discount in brokerage so that all the traders of the area may get attracted to his business and get an account opened.
If the broker finds a deal where he can get a number of accounts opened in a short span, he may offer a low brokerage so that even if a few of the clients start trading with him, he may fetch good revenue. In some of the cases, if the client offers a cheque of a huge amount also, the broker may offer a discount in brokerage rate as he thinks that the client is a premier one and can go for the good amount of transactions regularly if he is satisfied with the services of the broker.