For a trader, a demat account and trading account is not only required but also mandatory as per the law. The SEBI, governing body of the stock exchanges has made it clear that every trader needs to have both of these accounts and only the traders with the accounts can be allowed to trade in the market. However, for a trader it is not enough that he has the accounts as required but also needs to have the skills and knowledge of the trading and market to have the accurate trades that can offer profit expected.
In case you happen to trade in the share market, you will definitely make out the percentage of commission the stockbroker charges from you per transaction. All investors are directed by law to pass on a definite percentage as commission to his or her stock broker what is called brokerage levied on every transaction whether the investor may suffer loss or gain profits.
These brokerage charges were responsible for minimising by a big margin the profits that investors made. To handle this problem, some better brokerage firms surfaced with a trading account charging low brokerage.
Definition of low brokerage
It is right to say that a low brokerage account for trading means an online trading account in which you are charged the lowest sum of brokerage perhaps lowest possible in the market. There are many better brokerage companies that have put forward a brokerage amount which is considerably low as compared to the traditional brokerage houses.
As you go for a low brokerage trading account, you are not required to shell out high commissions on every transaction you perform. Almost in all cases, by holding a low brokerage account for trading is meant that you will have to pay a low flat fee for transactions and not to shell out a percentage from your profits to the stockbroker.
Profits of holding a low brokerage trading account
You have to pay extremely low brokerage or flat fee in place of giving away a big portion of your money.
In case of any kind of loss to you in transactions, a low brokerage account for trading does not dig a hole into your pocket.
It is not necessary to compute the amount of your commission each and every time you go for a deal in the market.
Open a low brokerage trading account
In the market are present many low brokerage firms but there are merely a handful of such firms that provide low brokerage account for trading. You are needed to hire the services of an online brokerage firm that offers you facility concerning reduced brokerage trading account.
As you hire a firm concerning brokerage, you are required to fill up a form pertaining to opening an account, and you have to furnish some documents for address proof and identity.
As you complete all these formalities, you are ready to commence trading in the market without any hassle and burden of heavy commissions with each trade in the session.