If you have some knowledge of finance and stock market, there can be many options with the help of which you can earn well. Well, there are some options in the stock market such as a day trading which can help one earn considerable profit with small investment and churning of the same. However, it is also a business and like all other businesses one needs to focus on trading well. One needs to have information about the stocks and how will it move which can help to decide whether one needs to buy that stock or sell.
The trades: For an individual day trading can be a good source of side income of he can invest a little amount and efforts. The process for the same is also much simple. One needs to have a Demat as well as a trading account. In the Demat account one can park his stocks while in trading account one can trade the stocks on different exchanges. There are some charges one needs to pay in the initial stage to the broking company for both account opening. Once the trading account is opened, there is brokerage charge for each trade whatever one carries out. This brokerage is the primary source of revenue for the broker as well as the brokerage companies. For a trader it is an expense and hence he needs to compare brokerage charged by different brokers or company before opening an account with any particular company or broker.
The brokerage rates: There is no standard rate of brokerage but as per the industry practice the client knows it. However, every broking company or broker charges it in some rates or fixed amount. For a trader higher brokerage means more expense and hence he always loves to go for some company or broker who can offer services at a low rate of brokerage. In case of advanced brokerage one can get a plan with low brokerage rate. In such scheme one has to pay the brokerage of fixed amount in advance. Then he can start trading and the balance of the advanced brokerage starts getting down. Once it is exhausted, he has to again pay fixed amount as brokerage to the service provider. This is a beneficial situation for the broker as well as the client. The broker gets the amount in advance and hence even if the turnover of the client reduces he may not be affected. For a client as he has to pay overall brokerage at a low rate it can help him to save a considerable amount as brokerage. One can just make the payment of the same in advance and save good amount if the turnover is high. Hence for a client also it is a positive scheme. There are also companies that offer low brokerage charges if the client goes for an online account opening where he does not get any support from the branch. However, there is always some technical experts on calls so that if there is any technical problem client can call and get it resolved.