HOW TO START YOUR CAREER AS A SUB BROKER? GILL BROKING

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.
Wrap Up

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.

Become a Sub Broker Today | Sub Broker Franchise | Open Gill Broking Franchise‎

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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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