The stock market is considered much sensitive to every movement of the economy. People believe that all the factors have positive or negative effects on the market and trend. Hence the share prices keep on changing continuously during the trading sessions. There are many people who love to get the benefits from this movement of the share prices, and they make a particular strategy. It can be a style of buy at low and sell at high or inverse sell at high and buy at low. Usually, this type of transactions are possible only in a market when the movement is fast and cash segment as well as derivatives.
Those who love to take the benefit from the movement of the stocks are known as at rader, and they can do such transactions only with the help of a trading account. The trading account can be opened with any market player who has facilities of bolt and terminal. For such terminal service provider, the brokerage is the main revenue. Hence the trader has to pay a certain amount to the service provider as a part of his trade amount. Usually, it is set as a percentage of the trading amount, but in some cases, there are also fixed amount. For every type of trade, a particular brokerage calculator is required. The trader also needs to calculate the brokerage with every trade as it is an expense to him and his profit is reduced to that extent or the cost of the shares are increased accordingly.
The brokerage rates:
The rate of the brokerage varies from the service provider to service provider. There are some standard rates, but one can bargain it on the base of thetype of accounts that is whether one has anoffline account or online one as well as the volume and check of amargin account. Many times the service providers offer low rates to the clients who have ahigh volume of transaction irrespective of intraday or delivery of the stocks. In many areas where the service provider is new, he launches some schemes where one can offer low rates of brokerage to generate the client base in the concerned area. The traders need to be careful while choosing the service providers as there are certain terms and conditions with each of them which one must know thoroughly before signing the agreement. The service providers provide bills with every trade, and the trader needs to check them at the day end to understand the changes in his account. In the case of any unknown or unordered trade, he must bring the transaction to the notice of the service provider. In the case of an online account, one needs to trade on his own as he is not provided service of the terminal operator. However, in the case of any technical error, he can get the support from a technical team of the service provider. The credit limit and interest on the credit is also an important aspect the trader need to take into account before opening the account and starting the trading.