Trading in share market is something very helpful to the traders who love to have some side income as well as the main income if they take it as a main source of income. There are various companies in the market which are listed on different exchanges and traders can trade in shares of these companies. The traders who want to trade in the market it is necessary to have a demat and a trading account. There are ample options in the market as far as brokers and broking companies available in the market with the help of which the traders can easily trade in the market.
The demat account is a mandatory requirement by the regulators and used for keeping the shares bought or got from IPO in the same. For the traders who want to go for trading in the market it is also mandatory to have a trading account in the market. In this regard he can approach any broker or broking companies for opening of different accounts.
The trading and brokerage:
In the market the trading account can be opened by any broker or broking company but the demat account can be opened by NSDL or CDSL only as they are the only authorities to open the demat account. For opening of these accounts the traders need to approach any broker who is authorized to open these accounts. The traders also need to provide various supporting documents and amount for margin money. These accounts can be opened within seven working days by the concerned broker or company.
For any trader it is necessary to know the expenses that he needs to bear as a part of the trades. The main expense here is the brokerage which varies from broker to broker or company to company. One needs to be sure about the rate and type of brokerage which he needs to bear. In some cases the brokers charge a fixed percentage as a part of the turnover while in some cases they also charge a fixed amount on trade. There are also brokers who charge brokerage separately and in advance. One who in interested in earning in this market needs to check if he can open the account with a discount broker.
The broking service providers:
One can find full service brokers as well as discount brokers in the market. The full service brokers offer various services while the discount service broker offers services of trading only. There are ample discount brokers in the market but they offer the services to the bulk traders only. Hence if one aims to have bulk trading or already have bulk trading, he can approach such service providers and get the account opened which can help him save a good amount as a part of the brokerage.
Overall one can say that after getting the right broker one needs to go for the bulk trading as it involves a huge cost and more risk compared to the retail or casual trading.