FIVE ADVANTAGE OF SUB BROKER FRANCHISE AND HOW YOU CAN MAKE FULL USE OF IT?

Being a sub-broker isn’t an easy job which just requires handling certain calls and delivering promotional emails. The job of a sub-broker is not limited to presenting the best possible stock deals to the clients; in fact, it involves risk and unpredictability bearing appetite. Wondering what all risks do a sub-broker has to deal with? The probability of falling share rates, increasing inflation in the region, and increasing scepticism are some of the common tensions that every individual who chooses to get sub-broker certification have to prepare for. To top that all, the recent scenario clearly depicts how challenging the coming years can be for a sub-broker, especially considering the fact that most of the stock traders are now buying and selling their shares online on their own rather than seeking the assistance of sub broker franchise.

Note that the share market is considered to be a complex network that involves market trader, sub-broker, stockbroker, shareholders, and a lot more individuals. Hence, having proper knowledge as well as certification is essential to be part of this community. So have you decided to pursue your career as a sub-broker? Prior to commencing your broking company, make sure that there are a lot more factors involved to be a successful sub-broker than just investing substantial capital in your firm. Here are the essential aspects to take into account to achieve your goals.

  • Get your certifications

In the recent era, people often think that the job of a stockbroker is a piece of cake. Anyone holding basic degrees together with a little information about the current stock market condition and trading rule can call himself a stockbroker. However, this perception isn’t accurate at all. Just holding the minimum graduation isn’t sufficient unless you have got professional certification such as NCFM. Not only is this advanced certification essential for the individual to pursue his/her career in the stock trading realm, but it works as a way to ensure your clients that you possess a considerable amount of knowledge in the stock trading field.

  • Work under the renowned broking company

Besides education, you also need to get significant experience by working under a famous sub-broker franchise or a broking company to gain practical knowledge of commodity trading. This will also provide you with a chance to maintain a friendly relationship with conventional and online brokers. This way, stepping into the sub-broker realm will not be too tough for the novices.

  • Get a loyal client base

Today, in order to get hired by the clients, you will need to earn a good portfolio so that the people could trust your services and hire you to accomplish their task. Being a sub-broker, you’ll initially have to search for a dedicated client base to build up a good portfolio which can help you to draw the attention of stock traders across the region.

  • Infallible Infrastructure for your company

If you’re planning to go with traditional broking approaches, you will need adequate infrastructure in the form of office, employees, and etc to open an appropriate broking company. However, most of the people now prefer online trading, making it easier and cost-effective for you to promote your company online without having to invest thousands of bucks in virtual setup.

  • Stay updated with latest broking technologies

Gone are the days when broking was all about share market knowledge and the latest policies. Today, you cannot call yourself a professional sub-broker unless you are well acquainted with the latest technology, smartphone apps, and broking software.

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The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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