How to Start Your Career as a Sub Broker? Gill Broking
25 Nov 2019
Starting your own firm and ensuring that all the business operations are carried out smoothly can be a difficult job. Sure, it requires a lot of hard work and effort from the entrepreneur to run the business efficiently.
If you search around the internet, you will come across the same patterns and points that every entrepreneur is supposed to follow to succeed. If truth be told, passion and dedication towards your business are the two important factors that determine how well your firm performs in the competitive environment. One such type of entrepreneurship that requires too much effort and dedication is sub-broker. As technology is advancing at a rapid rate, the demand for sub-brokers is increasing by leaps and bounds.
A sub-broker is not the investor or stock trader. In fact, a sub-broker can indicate a platform or an entity that trades stocks on behalf of the stock exchange trading member. They don't buy or sell the stock or bond for their profit but do it on behalf of a licensed trading member. They also help and guide the traders throughout the stock trading process. As much as a sub-broker business is challenging, it is a lucrative opportunity for individuals who are willing to learn about the financial market. Low-capital investment requirements make sub-broker an economical and profitable industry for individuals.
The Basic Requirements for Becoming a Sub-Broker
As much easy as the business of sub-broker might seem to the beginners, it can come with a set of risks and challenges. But, you don’t have to worry a lot if you meet the sub-broker qualification standards. Fortunately, there is no high-qualification requirement. As long as you are up-to-date with the stock and financial market, you can start your career as a sub broker. However, there are other special requirements you must fulfil to become eligible for this business. Let’s have a look at the eligibility criteria for sub-brokers.
- The candidate should complete their primary and secondary education to become eligible for a sub-broker business. Though the minimum qualification requirements are 12th standard, the candidate should consider completing their graduation degree for better opportunities.
- The candidate must be well familiar with the state’s or country’s financial markets. You can either get this knowledge from certain financial courses or your past work experience.
- Though the stock market is all about the financial condition of the economy, factors like social and political scenarios can also influence stock prices. The right candidate should stay up-to-date with current world affairs.
- The candidate must be well-versed with computers
- Stockbroking has become a competitive market. It is important for the candidate to learn to communicate with the client seamlessly.
- You must have brilliant management knowledge
- Before you set up the agency, clear mutual funds, F&O, and equities modules to conduct the business legally.
The Capital Requirements for a Sub-broker
The sub-brokerage business involves a less capital requirement than other forms of business. Some of the basic investments involve the initial deposit with the main broker (around 50k to 3 lac), internet connection charges, registration expenses (20k), monthly rent, utility bills, and staff salary.
Important Factors to Consider When Starting the Sub-broker Businesses
- Collaborate with an experienced and reputable broker. You don’t just need a high revenue, but fame and popularity in this industry. You can approach your family, friends, or financial analysts to come across some popular brokers.
- If you consider the sub-brokerage business a part-time job, you are highly mistaken. Most of the sub-brokers end up closing their business just because they couldn't give enough time and effort to their business.
- The sub-broker industry is no more confined to equity transactions. Your clients also expect you to give valuable advice on stock purchasing.
Key Points Every Sub-Broker Must Know to Increase Their Business
- The first step to becoming a sub-broker is preparing the list of people who are ready to assist you in your overall journey. It can include your close friends, family members, supporters, followers, colleagues, and clients.
- Start cold calling
- When you start the business, you must consider having at least 2-3 meetings with your potential customers. Finding new clients and tempting them to do business with you can be super challenging without proper meetings.
- It is your current clients that bring money into your business. But does that mean you should stop cold calling? Well, cold calling is an important aspect of a sub-broker business. You need to search for new clients from time to time to ensure that your business keeps going.
Knowledge is the key to a successful sub-broker business. You must keep yourself and the employees up-to-date with the current information. Arrange proper training for your employees to ensure a successful business.