Spending some time over the choice of brokers may profit you in the long run. This is because different trading houses charge different rates. They all offer the same services except for the one or two who are different and charge lower than the rest.
Check which broker you want
When you compare brokers, you see mainly two kinds. One is the full-service broker who offers the full package – trading account, bank account, financial advice, market analysis tools, and more. Then, you have the discount brokers who offer you an account and leave you alone. This trading account is light and mostly the traders who opt for such brokers do so because they do not have a big trading portfolio.
The advantage of having a discount broker for your trading is that they charge only a flat fee. They take a fee of Rs 20 or so for each transaction the trader makes and assuming he makes many trades, the trading fees still comes to only Rs 100 or so for the entire day. Now, that is small compared to the full-service brokers who charge a commission per cent of about 0.5% on the traded amount. This will seal the trading fees at something like Rs 100 or more for each deal. When you make many deals, the amount becomes big.
Keep a watch on the money
No one wants to pay money while making the trade. The choice of the cheap broker is natural but it may not be everything. The trading platform must have enough robustness and flexibility while the leverage offered must remain good. For this, the brokerage house must have enough market analysis tools. The cheap broker is sometimes useful when you know how to use him.
It is better to compare brokers when one is starting out to make the trade. This way you avoid having to pay big money in the long run. Before you start the trading account you have to submit the fees. You should check the tools that they offer with the trading platform. This might include one of more as discussed below.
Use different tools to analyse the market situation
Tool to analyse the momentum of the market: This is needed for the traders who do long term trades. Sometimes, they carry the trade over to the next day. This momentum analysis tool helps them understand how much to invest and for how long they must hold their position. Next is the check for reversal signals. You can do this in a variety of ways. It involves experience and the knowledge of the market conditions to make accurate predictions. The trader who is able to spot this reversal signal makes the most money.
Use of the tool helps you come up with a special strategy for the trade during the day. What the seasoned trader does is to watch the bullish and bearish candlesticks and make their move accordingly.
Once you make money and it becomes a habit, you have reached the other shore. That is what every trader is aiming for and with the help of the proper trading platform from the best broker, this becomes possible.