In the stock market, the brokerage plays a vital role. Numerous service providers are there with whom the client may get a DEMAT and a trading account. For DEMAT account there is an annual maintenance charge, but for the trading account, there is no such fixed charge as one needs to pay brokerage on each trade. This rate may vary from broker to broker or company to company, but usually, each broker charges some standard rate only, and hence one may not see a huge variation in rates. From a trader point of view this charge is an expense, and hence every trader tries to have an account with a broker who can offer a discount in brokerage.
As far as the market is concerned, one can see a lot of people here who are just interested in the day trading as it can help them make some extra money than what they earn in routine. The trading is not difficult in this market as one just needs to understand some fundamental principles of the market. The trader can buy or sell shares of any company even if he has them or not. There is a Demat and a trading account that one has to get opened with any of the authorized service providers. The trading account has no charge, but the client has to pay brokerage whenever he transacts. The brokerage is applied on both sides buying and selling. The rate of the same is fixed at the time of opening the account only. In the Demat account, the client has to pay a fixed amount as a charge because he cannot trade in this account and hence there is no brokerage applied. Usually, the traders look for a service provider who offers a discount in brokerage also. The discount brokers in India cannot be found so easily as the broker does not compromise with the brokerage in normal situations as it is a major source of income for him.
As far as the trading account is concerned, one can go for an online account or an offline one. However, in any case, one must know the pros and cons for the same. In the offline account, the client can have the support of branch and particularly of the bolt operator. Hence he needs to keep watching the market as the operator will keep him posted. The operator also lets him know if the shares are sold or on hold, the order is placed or not and the order is executed or not. He also monitors the account and guides the client about the settlement of the account. However, in the offline account, the rate of the brokerage may be high than that of the online.
In the online account, the brokerage rate may be low, but one needs to monitor the market himself and also carry out the trades on his own only as there is almost no support provided from the branch of the service provider.