Many people are there who try to have some side income but do not know how to get it. Well, the stock market is a right platform for such people where with the help of trading in the shares of leading companies one can earn good profit. However, for that one needs to have some basic knowledge of the market and shares so that the opportunity to earn the profit can be grabbed at the very right moment. For the trading one needs to invest a little amount and keep an eye on the prices of the shares of the concerned company. As soon as there is an increase in rates than at the rate which one had purchased the shares, he needs to sell them and book the profit.
There can be numerous events when one can go for such trading in the market. For the trading one needs to have a trading account with any of the stockbrokers. One also needs to open a demat account where the shares can be parked if they are purchased for long-term investment. As per the SEBI that is the regulatory authority of the market, to have the demat and trading account with each trader is mandatory. Hence one needs to get these accounts opened with any of the authenticated share brokers or a broking company. The share broker or broking company charges the client for every trade in the market which is known as brokerage charges. In such case, this charge proves as a cost to the client, and hence one needs to get an account with a broker who can offer the account with lowest brokerage charges in India. Usually, the brokers do not compromise with this rate as it is the main source of revenue for them, but there are some points where they have to offer a discount.
The trading accounts:
In the market, there are two types of accounts that can be used for trading. They are offline account and online. The trader can choose any of these accounts as per his choice. If he is busy with his business or profession, he can go for the offline account where the charge of brokerage may be a little higher, but at the same time, he can also have the help of a terminal operator who can place an order on his behalf and also monitor the account. He can also set limits and check if the client has sufficient balance in his account.
There is also an online account, which the client who wants to take trading as a business can go for. The client who wants to go for this account needs to have the facility of a computer or a smartphone. In any of these cases, an active internet connection is also much required. He also needs to dedicate full time to the trading and monitor his account as well as the market. He must be aware of operating the software and know how to place the order as well as set the limits.