All you need to know about sub-broking and how to become a sub brokerby Pankhudi Dave Head Finance Manager
The world of investment trading is becoming popular day by day. It offers attractive returns to investors, on their investments. More and more, young and old investors are considering different means of investments to create their corpus. While young investors opt for online trading, most middle-aged and older investors prefer hiring the services of brokerage firms to help them with their investments. Major investment companies, for instance, Angel Broking, hire sub-brokers to help their clients with the investment needs. If you wish to become sub-broker, this article is for you. Here’s all there is to know about sub-broking, how to become one and the documents required for of becoming a sub broker.
As an ordinary investor, one cannot purchase or sell shares directly. Investors need to conduct their share market transactions through brokers, who are members of the different stock exchanges in India, for instance, NIFTY and SENSEX. Since the number of brokers and brokerage firms is small as compared to investors, sub-brokers are tasked with doing a lot of work related to the investment needs of clients or investors. So when an investor purchases or sells shares, they would need sub-broking agents to facilitate the transactions, especially in case of off-line trading.
How to become a sub broker in India
If you wish to become a sub-broker in India, you need to prepare for it before you apply for the position. Here’s what you need to do:
Check you educational qualification: The first step is to check your educational qualification. You would require a minimum qualification of HSC or 10+2 to qualify as a sub-broker. Note that some broking companies may only hire graduates as sub-brokers.
Learn about the financial market: Before you apply to become sub-broker, you need to ensure that you study about the investment market. You would require excellent working knowledge of the various financial markets in India, especially the equity market. You can learn about it through basic internet research. Polish your knowledge about the various terms and jargons related to financial markets and how different types of trades are conducted.
Read about the economic conditions: Part of your job interview may include questions regarding the economy and how it is functioning. You should be aware of the latest market trends on a domestic as well as global level, as well as economic policies and political situations that may or may not affect the way the stock market performs.
Polish your communication skills: You need excellent communication skills to become sub broker. Effectively communicating with clients can prove to be a great boon and can help advance your career at a faster rate. You should be able to explain the different investment instruments and how they measure up to your client’s expectations.
Documents required for becoming a sub-broker
Having explained how to become a sub broker in India, let’s look at the documents you need to submit in case you qualify for the job:
• Four passport-size photographs
• A photocopy of your PAN Card as ID proof document
• A Photocopy of either your Passport, driver’s license, Voter’s ID, Aadhaar Card or latest utility bills as address proof document
• Reference letter from a certified Chartered Accountant
Final Words: As a broker, you will be tasked with purchasing and selling investment instruments and assets for your clients. In return for the services rendered, you can charge a fee, known as brokerage. As a sub-broker, you can earn a decent commission on every single transaction you handle. Now that you know sub-broker meaning, you can consider becoming a broker as a valid career option.
Created on Oct 22nd 2019 08:02. Viewed 253 times.
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