For those who want to have some side income with the present job or business and that too with the limited amount of capital and risk, the best option is to trade in stock market. Here one can start trading in cash segment with low capital also. However, it is important to have the knowledge of the stock market which can help one identify the moment when to buy which shares and when to sell. The minimum requirement for trading in this market is a trading and a Demat account which one can get opened with any of the stockbroker or a broking company.
There are primarily two accounts which are known as trading account and Demat account. The trading account is one where one can go for the purchase and sale of shares in the market during the market hours. Usually, all the shares purchased, come to this account only. If one sells them on the same day, he does not need to transfer them to the Demat account, but if one buys them for delivery for a long time, he needs to transfer them to the demat account as it is an account where one can park the shares purchased as delivery.
Whether one goes for the purchase of the shares on the delivery basis or intraday, he needs to pay some amount to the broker as a brokerage charge. Therefore one needs to have an account with discount brokers India who can offer a discount on this charge also. The rate of the brokerage is fixed before the opening of the account only, and usually, it varies from broker to broker also. As it is an expense for the trader, he needs to get the account opened with a broker who charges less.
However, the brokers do not allow a discount on brokerage as it hits their revenue. They have a lot of expenses that need to be met from such revenue only. Hence usually no broker prefers to offer any discount on brokerage. However, a client who wants the discount can check a few of the brokers in the area as well as on the internet which may help him get someone who can offer an account with a low brokerage.
There are some brokers who offer low brokerage if the client gets an online trading account opened. In the online trading, he needs to punch the trade on his own only. The client who prefers to have online account needs to have either a computer with internet connection or a smartphone with the internet where he can pass the transaction. Here he needs to monitor everything on his own, and no branch or terminal operator support is provided. Hence whether it is profit booking limit or stop loss, it is only who will have to manage the trade. In some cases, if the client is ready to pay the brokerage of specific duration in advance, there are some brokers who offer low brokerage rate also. Hence it is purely a client’s call what he would love to go for.