Starting a company with a small initial investment is difficult in today’s highly competitive market. Every business requires significant investment and carries a number of risks, the most important of which is the possibility of failure. They also need sufficient working capital to cover the day-to-day expenses the company has to pay to survive. And as long as you know how to become a sub-broker, it’s not as complicated as it seems.
Who is a sub-broker?
A sub-broker is a person who acts as an agent on behalf of a trading member (securities brokerage firm). The role of a sub-broker is to help investors trade the securities brokerage business for stocks and other securities. Other roles and responsibilities include:
- Actively participate in the business growth and sales process of stockbrokers.
- Ensure that customer transactions are of high quality.
- Help clients make informed transaction decisions.
- Make financial and stock recommendations to clients.
How to become a sub broker in stock market?
Let’s see how to become a sub broker in stock market.
- Choosing a sub-broker franchise model: First, you have to choose the best sub-broker franchise model you want to follow. Read various business models and choose the one you like. Then check the eligibility criteria. For individuals, this is very basic.
- Submission of Documents: After verifying that you meet the sub-broker eligibility requirements, the next step is to submit all required documents to the securities brokerage firm you wish to partner with. You must submit the following documents:
- Sub broker registration form
- Brokerage and sub-brokerage house agreements which are fully signed by the applicant.
- Proof of applicant’s address. The following are examples of acceptable proof of address documents:
- Latest phone bill
- Latest electricity bill
- Valid distribution card
- Valid passport
- A valid driving license
- previous month’s bank statement
- Experience certificate. This is required when the applicant’s qualifications are lower than HSC.
- Other required documents
- In addition to submitting all necessary documents to the brokerage firm, you will have to pay a processing fee.
- Upon receipt of the documents and fees, the broker will electronically submit your application to the exchange and pay for the processing of the sub-broker’s application on your behalf.
- After that, the exchange carefully checks all the documents for errors. In case of discrepancy, the exchange will send the application and supporting documents back to the applicant for correction and resubmission.
- After the exchange approves the application, the SEBI registration fee must be paid to the broker.
- SEBI will issue the sub-broker registration certificate and registration number after you pay the SEBI registration fee.
After receiving your registration certificate, you are officially considered a sub-broker.
One of the best sub broker in stock market franchise concept is offered by Choice. Partnering with Choice gives you access to a powerful brand name, an intuitive tab-based advice platform, an advanced trading platform, and best-in-class research reports, to name but a few.
And when you choose to become a business partner, you benefit from a high profit sharing model, personal support and risk management methods.