For the traders who love to deal in share market demat account and trading account are much important. At the same time the rate of brokerage is also equally important as there is no specific standard how much brokerage can be taken by the broker or company. The market is open and hence it depends on one’s negotiation skills as well as volume of trading how much low rate he can get. For any trader who deals in bulk,low brokerage is a primary aim as he may have a number of transactions daily and hence the amount of brokerage is also huge.
Finding the right broker who can offer better services at a low rate is much important for any client. Although for a retail client it may not be that much important but for a bulk client it is.
How to save brokerage?
There are a few tips offered by experts which can help one save the brokerage amount to a huge extent.
- Check the rate with different brokers: The best way to get low brokerage is to compare the rates from one broker to another. Such comparison may drive a broker to reduce his brokerage rate. In the same area if one can find another broker with low rate he can ask his broker to offer better deal which can ultimately help him in getting lower rate of brokerage.
- Advanced brokerage can help more: Some of the brokers and companies offer low brokerage rate if the client pays brokerage in advance. It does not make any difference to a bulk trader as for him such an amount is trivial and hence he can take the benefit of the advanced payment of brokerage to have low rate of the same.
- The bulk trading: In case of a bulk trader the amount of brokerage is relatively higher than the retail traders. In such case the trader needs to have low rate of brokerage and can negotiate the same with the broker. The broke may have to offer a discount but he may get huge amount as revenue regularly. Hence one can show the trading statements and ask for a better rate which usually every broker considers.
- More margin money: In some cases the brokers offer a scheme to the traders who provide more margin money. A good amount of margin money means the trader is aiming at a good volume and hence the broker can feel that he will get better revenue in the form of brokerage from the concerned trader. Hence he can offer a low rate of brokerage which can help the client to have more trading.
- Online trading: In many cases the companies offer low rate of brokerage to those who opt for online trading. In this system the broker does not need to serve him for routine trades and that is why the rate of brokerage can be lowered. This can prove much helpful to the clients who look for better or discounted rate of brokerage.