Those who are aware of the stock market and its functions may widen their eyes with the word zero brokerage. Well, it is very natural also as the primary source of any firm or company in this field is brokerage only and if it offers zero brokerage than what will the company earn. However, in some situations, there are still some companies that offer such schemes.
The trading:
A stock market is a place where those who love to invest in companies and prefer to earn a limited return can buy the shares of different companies. There are also some people who just want to get a short term profit, and for them, the trading is the best option. Such people after opening a Demat and trading account can start trading in various shares of different companies. There are many companies which also help the traders by providing them information about the movement of market and local as well as global trades. For a trader, the brokerage is a charge that he has to pay to the service provider who offers him a trading account and also place various orders. There are two types of trading account which are known as the offline trading account as well as online trading account. In the offline trading account, the trader needs to call the service provider and ask him to place an order on his behalf while in the online account he can place the order from his system and himself. The traders as they have to play in narrow margin majority prefer to go for the low brokerage plans that can help one to earn more profit on every trade.
The zero brokerage:
The zero brokerage is a plan offered by some service provider or company to traders who can help the company or service provider to fetch more revenue from their trading activities. In many cases when the service provider is new to a particular area he launches such schemes to attract the traders and increase his revenue from the very beginning. In some cases, such scheme is offered to a trader who deals with a huge volume per day and can also offer a huge cheque for the initial investment. So that looking at his trading other traders can also get attracted and from such other traders, the service provider can earn good revenue. In many cases, a zero brokerage scheme is also offered to a particular client in some cases only, and if the conditions are not followed, he has to pay the normal rate of the brokerage only which becomes income for the business or service provider.
Hence, in any case, it is such a situation where the business, as well as the client both, has fair chances to earn well in a short period also and enhance the profitability. Therefore there are many traders who just keep on seeking a service provider who can help them with low brokerage and earn more revenue out of the trading activities in the stock market.