The trader is one who purchases and sells shares in the stock market during the session. There are various types of trades as far as the stock market is concerned. Here one can go for the trading in cash as well as derivative segments. One needs to have sufficient skills and knowledge of market movement so that the right opportunity for buying or selling of shares can be identified. However, this much knowledge is not sufficient as one also needs to know how to trade in the market. Though, it is not mandatory to trade in the market by own only as there are brokers who can extend their help at this stage.
As per the rule of the SEBI, regulator of the stock market, it is mandatory for every trader to have a trading account without which he is not allowed to participate in trading. For this one needs to get a trading account opened with any of the brokers who have got a license from the SEBI. One can go for an online account where the trader is provided a password and user id. He can log on the website when the market is in session and start trading. Usually, it is done on a computer. However, there are also applications available with every company or broking house with the help of which one can carry out the trade. Whether one trades on a computer or application, he needs to have an active connection of internet.
In the market, one can find a full-service broker who is not a help for trading only but also supports with some other services. These services include advisory services, investment services,and research services. Due to services only, the rates of brokerage with these brokers are on a higher side compared to only trading services.
While the discount brokers are the brokers,who offer only trading services and hence they can offer the services at relatively low rates. They do not offer the services for investment or advisory. Hence they are purely in trading and its related services. To get a right discount broker one needs to check some of the sites on the internet as well as personal references from the frequent traders. Before going for hiring the services of any such discount broker, one must check his reviews as well as terms and conditions so that later there cannot be any dispute.
It may happen that such a broker may not have any branch in the city of the trader. In such situation, one can go for any broker with an online account where he can trade as per own convenience and with own resources. For the trader who prefers it as a regular business activity and has a huge volume of trades, the service of a discount broker may prove much helpful. It can help one save a good amount on regular brokerage and fetch more profit with the reinvestment of such amount in the share market.