Get the Plan with the Low Brokerage and Get High Profit
There are various ways of earning but when one falls short in income with the main source of earning; he has to look for some options for side income with the help of which the gap of income can be filled. In such situation, those who are with little capital but good knowledge of finance and companies can go for the trading in the stock market. There are intraday and delivery options with the help of which one can earn some profit. The risk in such trading is moderate, and one can start from a small scale also. Over a period once the profit is made, one can go for large volume trading that can fetch more profit also.
For trading in the stock market, one needs to have a trading account first. If one does not have it, it can be opened with any stock broker or a broking company. One needs to provide some documents such as ID proof, Address proof, banking proof and pay the charges for account opening. To trade in this account, the trader needs to pay brokerage on every trade. As it is an expense for a trader, every trader loves to have the lowest brokerage account so that the expense can be saved. In such situation, one needs to understand that there are some situations when he can have the discount in brokerage.
Discount in brokerage:
Here are some situations when one can have low brokerage plan from the broker or broking company.
- High Volume: If the trader trades on a large scale he can have a high volume of trading, and it can be a plus point for him to ask for the low brokerage plan. The broker can also understand that even if the brokerage rate is low, due to the high volume, he can earn good profit in terms of brokerage charges to the account.
- High margin money: In some cases, if the trader offers high margin money the broker allows to have a low It is because the high margin money will lead to high volume and hence overall the broker can earn well.
- Online account: If the client goes for an online account, he transacts on his own, and the broker does not need to help him carry out the trades. In such case due to low cost, the broker may allow low brokerage charges.
- New client: If the broker has limited number of clients and he wants to increase his client base he may go for the low brokerage plan so that the traders can be attracted to get an account opened with him.
New branch or new area: If the broker opens a new branch he may not have clients and hence to get some clients he may compromise with the brokerage rates. Same way if he has a new branch he may offer low brokerage rate to have more clients there and get it converted into a profit center.