With the apparent rapid growth of the Indian stock market, there appear to be innumerable possibilities for profit for investors in all sectors. This surge in interest, combined with the emergence of numerous startups in every niche, has accelerated the critical need for brokers & sub-brokers to facilitate stock market trading. With so many opportunities to pursue, becoming a sub-broker is a simple process, especially if you have the best brokerage firm to guide you. As a result, in this article, we will walk you through the steps of becoming a sub-broker in India.
The stock market has recently seen a meteoric surge in popularity in India. In fact, data shows that millions of Demat accounts were opened by retail individuals in the first half of the year 2020 alone. However, neither retail nor institutional investors are permitted to trade directly on the stock exchanges. They can only do so with the help of a stockbroker.
And, with an ever-increasing number of people looking to trade within the stock market and only a few stockbroking firms to service such a large and expanding client base, possibilities for share trading franchise are now more widespread than ever. For budding entrepreneurs looking to start their own business, sub-broking could be an exciting opportunity.
What Exactly Is indeed a Sub Broker?
A sub-broker, according to the National Stock Exchange, is a person who acts as an agent for a Trading Member (a stockbroking firm). A sub broker’s role is to basically assist investors with their dealings in shares as well as other securities through the stockbroking firm. Other responsibilities and duties include the following:
- Participating actively in the stockbroker’s business development & sales process.
- Keeping the performance of their clients’ trades.
- Providing their clientele with the ability to make informed trading decisions.
- Making investment recommendations and stock picks for their clientele.
How Does One Become a Sub Broker?
Now that you understand what a sub-broker is, let’s look at becoming one.
To begin, you must select the best sub-broker franchise model in which you wish to participate. One approach would be to read carefully thru the various stockbroking houses’ business models and select the model that you prefer.
Check the eligibility criteria after you’ve decided on the best damn thing broker franchise model. Individual eligibility criteria are quite simple.
After ensuring that you meet the Sub broker eligibility requirements, the next step is to submit all of the necessary documents to the stockbroking firm with which you wish to work.
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