5 points to ensure you are a top notch sub broker in India

Any professionally trained individual who acts on behalf of a trading member can be a sub-broker. They are not Trading Members of the Stock Exchange, and they require a certificate of registration from the SEBI. They cannot deal in securities without this trading certificate. To date, Trading Members of a Stock Exchange must work with the Sub-Brokers. This agreement details the trading member’s responsibilities, including ensuring that an active client does not act as the sub-broker.


Why are stockbroking and sub broking professions for the brave?

Becoming a sub-broker requires an appetite for the unpredictability and risks of a share market. It is not an easy desk job that requires handling a limited number of client calls and sending out promotional emails. A sub-broker requires battling the odds of falling share prices, increasing skepticism, and increasing inflation rates in the country. The current scenario makes it apparent that it will be a challenging economy for stockbrokers and sub-brokers in the coming years. Only the best of the best sub-brokers in the current market will survive the market volatility trials.

Sub broking cannot be a whimsical hobby or a pastime. Several stockbrokers and sub-brokers in the country hold a secondary job due to the unstable market conditions and infrequent client acquisition. Still, you will need to dedicate your time and effort to learn about the stock market. Holding a minimum educational qualification that gives you insight into a stock market’s workings should help you in your brokering carrier. It would help if you also held professional certifications, including the NCFM certification. The presence of specialized certificates inspires confidence among your clients.

Having some previous experience in the share market always helps in moving forward with sub brokering. Courteous relationships with stockbrokers, old clients, and shareholders can help you establish new contacts with fresh trading groups and potential clients. The share market is an intricate network that connects each stockbroker, market trader, shareholder, and sub-broker. Therefore, if you have trained with a renowned broking company or interned with a sub-broker, you will have the upper hand while setting up shop.

What will you need to open a new successful sub broking business?

Apart from an impressive capital that can see you through for the next three months, you will require several things to strengthen your business. Here are the 5 essential things you must never forget if you want to become a successful sub-broker in India –

1.You will need a loyal client base

A dedicated client base will define the success of any authorized person. Friends and families are the first people who come and open their accounts with new sub-brokers. However, they are hardly ever active, and you will end up with an unimpressive portfolio unless you are ready to go out there are acquire some loyal clients.

2.Foolproof infrastructure for your broking business

If an authorized person wants to acquire their clients traditionally, they will require an office. Most brokers now work online via dedicated trading platforms, eliminating the necessity of a dedicated office. It also saves a fortune in terms of office setup and employee overheads.

3.Your contacts and professional relations

Maintaining A good connection with the existing online brokers and traditional brokers (start building your Rolodex right now) will pay you in the long run. Stepping into the world of share broking and stock trading without a feather in your cap is going to be challenging. Without a few trusted names to fall back on, you will likely not find a strong grip on the market at all. Authorized personnel, who has experience in the market, perform better than novice traders, who do not have access to a client list.

4.You need to learn the latest broking technologies

Broking is not all about market knowledge and the latest policies anymore. You need to learn about software, recent technology, smartphone application programs, and the latest reporting tools that can help you retain your resources.

5.Sub brokers need to update their facts of the share market

You will require a thorough knowledge of the current market. This will include a knowledge of the trends of share prices, declaration of IPOs, leading mutual fund investment opportunities, and a good idea about currency/commodity.

Just like any other business, a good brokerage firm requires a USP (unique selling proposition). In India, authorized sub-brokers are few in number because it is neither easy to become one nor easy to remain successful and popular for a long time. It is a professional well-suited for those who like to embrace excitement and randomness in their professional life.

Jeffery D. Silvers
Love and share my articles, I will be happy to react on it ! Spent 2002-2009 promoting weed whackers in Edison, NJ. Earned praise for importing junk food for fun and profit. Spent 2001-2006 exporting teddy bears in Atlantic City, NJ. Had some great experience investing in tattoos in Fort Walton Beach, FL. Spent 2002-2007 selling action figures in the aftermarket. Enthusiastic about working on basketballs on the black market.