For a developing economy like India, share market plays a vital role. There are various stock exchanges where public limited companies are listed, and their shares are traded. An individual who has a demat account and valid documents can start trading in any of the segments in the share market. Before starting the trading, one needs to know about the market and how to trade. It is a price-sensitive market where share prices cannot be determined quickly, and hence there are chances of loss also. To avoid loss and make a profit, one needs to study the market sentiments well. One can also take the help of a broker who deals in the market since long.
The role of a share broker:
Share broker is a person who has a valid licence and permission to carry out trade on various exchanges. He can also open demat and trading accounts of the client. The services which he offers to the client such as trading he gets an amount known as a brokerage. The rate of brokerage depends on the broker, and therefore one who wants to trade with him needs to discuss it before opening the account. There are many people who take share trading as a business and go for volume trading. For such traders, it is essential to check the brokerage rate. In many cases, the trader has to cut the position in the market with narrow margin also. Hence low brokerage rate can prove very much helpful to the trader in such a situation.
The discount broker:
In the share market, there are two types of brokers available who are known as a full-service broker and a discount broker. If the rate of brokerage is taken into account, the full-service broker can be costly compared to the discount brokers. However, the discount brokers offer their services to the bulk traders only. Hence if one wants to go for top 10 discount brokers in India he needs to check is trading volume first. The platform of internet one can find various discount brokers in India who offer bulk trading services at a nominal rate of brokerage.
These brokers believe in volume so that even if the brokerage rate is low, they can earn good revenue. Discount brokers also offer online as well as offline trading services. In the offline trading service, they provide a contact number where the client needs to call and carry out the trade. The client can also set various limits for the concerned trade. In the online trading services, one needs to have own infrastructure with the help of which we can place the order and trade in the market. From the service provider, he is provided with password and user ID for login on the website or application. With the help of the smartphone, one can also trade while he is travelling aur not present in his workplace. With the online trading service, the brokerage rate reduces significantly and proves much supportive to a bulk trader.