Making money on the market depends on two things. One is the amount of money you are willing to lose. The second thing is the broker you have. This determines the platform you use and therefore the flexibility and the options you have during the trading process.
Use the proper broker
There are two kinds of brokers for you. The first is the full-service broker who is the conventional broker. The second is the discount broker who does not offer all the services that the full-service broker offers. The choice of the broker will depend on the kind of transactions you will undertake.
One of the first things you must do when you want to trade on the Forex market is to open an account. The Low Brokerage Demat Account charge is not much but the brokerage charges might break you. For this reason, you should spend some time considering the two types of brokers and find the one to handle your account.
Pay the fees
First, there is all the fees to pay to open and keep your account going. The first of these is the Account Opening Fees. The broker or the sub-broker will charge this amount to open your account and the amount will vary according to the type of account you choose to open. First, there is the three-in-one account. Then, there is the Demat and trading account without any included bank account. There may be no fees and this depends on the Depository Participant. Sometimes, this amount may be Rs 500 – Rs 700.
Next, you must pay the annual maintenance fees so that the broker can keep your account going. The thing that really matters is the brokerage fees. This varies according to the type of broker you choose. The discount broker will take only a flat fee. This varies between Rs 50 and Rs 100. The full-service broker will take a percentage of the transaction amount. So, if you trade with a huge amount, the fees you pay will be more.
For instance, if you trade Rs 20,000, the brokerage fees are 0.5%, and the share value is Rs 220, then you pay Rs 220 for the transaction. This is arrived at by multiplying the share value by the brokerage rate and the total amount. If you deal with a bigger amount, say Rs 1,00,000 then you pay Rs 11,000. Obviously, you will lose money if you use a full-service broker. But, they give you a bigger service front desk option.
Choose an easy option
You can make the trade in several ways. One is to make copy trades. This means you do not make any trades on your own but merely copy the top traders who are with the broker. They are people who make money regularly and having a following of copy-traders helps them to exert an influence, though this may be immaterial.
You can make use of the trade predictions that is done by the software used by the broker. This is constantly tuned to the market conditions so you will get a fairly accurate picture of the market and movement of the shares.