You need quality service to make a profit by trading
For one who looks at the market with a huge expectation of fetching profit for his requirement of high earning, there are some important things that must be focused on. The trading service in the share market is taken with great delight by the professional traders who know the market well, but this may not be the case with a novice who does not know much about the same. One who wants to get the best from the market needs to meet certain requirements such as availability of accounts such as a trading and demat and sufficient information on the movement as well as trends of the market that can help him hit the right trade.
There is another important requirement which is known as a broker. The broker is one who brings the client to the system and helps him trade on different exchanges. In the market, one can find a full-service broker as well as discount broker, and according to the profile of the trader, he needs to choose any one of them. However, here one must know the difference between the services of both of these brokers before going for any. The service, as well as charges, are the core areas where these brokers differ.
The full-service broker: He is the professional who offers the client various services such as account opening, a high limit for trading, investment advice and consultation for various issues in the market. Hence it is a vast area that is covered by the broker here.
The discount broker: He is the person with limited services. His primary task is to offer the trading platform to the traders who deal in large volume. Such traders cannot allow a high amount of brokerage which is charged by the full-service broker and hence prefer to go for the discount brokers only.
How can the discount broker help?
The discount broker is an expert who offers and focuses on providing the trading facilities only. For this service, he gets the brokerage as his charges which are lower than that of the other brokers. However, with the low rate of brokerage also he prefers to carry forward as the increase in the volume of the regular traders can help him increase in the brokerage amount also. The client who gets the transactions done with low brokerage can go for high turnover in a few days which can indirectly lead to the brokerage increase of the broker also.
For a common man who is new to the market, it is not advisable to go for the bulk trading as he may make a wrong decision which can be costly for him. It is better to have some trades on a daily basis which can make him experience a lot of things and over a period he can increase the volume of trades if he wants to have more profit. The trader must learn the skills of trading on the bolt that can help him go for the online trading which can again help him reduce the rate of brokerage.