A broker plays an important role in the share market, as a broker is a person who acts as a bridge between the seller and buyer. And based on activities the broker provides, fees are charged. There are two different brokers, discount brokers, and service brokers. Well, for being a discount broker one needs to follow a few regulations of the country where they need to have a license. Well, there are several brokers available in the market. International brokers are also available who provide access to more markets with attractive commission.
Those who want to trade in Indian stock market need to have a trading and a demat account first. One can open these accounts with a broker or broking firm which is authorized by the market regulator, SEBI. Those who want to deal in bulk trading it is necessary to have an account with a discount broker in India as they can have a huge benefit in terms of saving on brokerage which is a significant expense a trader has to bear. As the trader deal in bulk some time he may not be able to make the desired profit and in such case he can have good benefit if the brokerage is low.
How to choose a broker?
In order to operate any share market one needs to have a trading account along with a market broker. Also one should have funds in the trading account. A broker could be a person or a company who sells and buys stocks as per the decisions of traders, and on the basis of trades, one charges a commissions for the services provided. In the share market there are a huge number of online brokers and it might be difficult for you to choose one. Here are a few basic steps one needs to follow several steps to choose a broker. A share market is a market with no regulations or rules, but still there are many agencies in foreign exchanges and many people choose regulated brokers. Also, several organizations are there with full rules and regulations, it could be government or private organizations.
What is the trading platform?
A trading platform is a platform for traders, and every broker recommends a different trading platform. All brokers help traders to use trading platforms in an easy way.A trading platform would be useful since it will help you to analyze the market trends. Also it is a kind of connection between the broker and the tools. Various free demo accounts are available which can be used to learn trading online, and it does not have any risk.
What are the important things one should know while hiring a broker?
It is really important that your broker makes right use of limits as well as stop loss in the trading platforms. Since all the profits and loss would depend on the limits. Each broker does respond in a different way for various trades. Also broker do choose different time to respond to various trades.