Who is a Sub-broker?
Equity has become a popular choice for Indian investors, and its popularity continues to grow as India hits a higher growth trajectory. It’s not hard to figure out why shares are so popular – stock market investments have been offering higher returns in the past few years. Of course, past performance doesn’t guarantee future returns, and there is market risk involved in equity investments. But, market fluctuation hasn’t deterred investors.
Individuals or institutions cannot invest in stocks and shares directly. Investors have to do it through brokers or broking firms like Angel Broking. These brokers are members of the stock exchanges authorised to trade on them. However, since the number of brokers is quite small, most of the work of investing is in the hands of sub-brokers.
The sub-broker definition, according to the National Stock Exchange (NSE) is as follows: “A ‘Sub-Broker’ is any person who is not a Trading Member of a Stock Exchange but who acts on behalf of a Trading Member as an agent or otherwise for assisting investors in dealing in securities through such Trading Members.”
Further, according to the NSE, all sub-brokers are required to obtain a Certificate of Registration from the Securities & Exchange Board of India (SEBI) without which they are not permitted to deal in securities.
Trading Members and Sub-Brokers have to mandatorily sign an agreement. This agreement is about the rights and responsibilities of both.
Angel Broking appoints sub-brokers to help clients gain from investment opportunities in the stock markets. Sub Brokers deposit a refundable amount with Angel Broking and enter into an agreement with the company. In return, they’re paid a commission for every transaction they carry out.
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What is sub-broker’s role?
Sub-brokers act as enablers for those who want to invest in the stock market or other investment avenues.
Sub-brokers not only help investors with the buying and selling of shares, they also play an educative and advisory role. Sub-brokers help investors find the right stocks to invest in, understand the pros and cons of investing in stocks, and help out with various investment options like mutual funds, derivatives, commodities, and so on. Read More...
Who can become a sub-broker?
Sub-brokers don’t need to have higher education qualifications or years of experience to be a sub-broker. However, some basic skills like dedication and zeal to win will come in handy if you want to be successful.
For example, knowledge of market movements and an acquaintance with the functioning of the stock market are qualities any broker would certainly help. There must be an awareness of shares listed on the exchanges – what their potential is, the risks that are involved and so on. A sub-broker must be in a position to advise a client with confidence.
The person will also need excellent communication skills. He or she must be able to convince clients about the right way to invest in stocks. Since income will depend entirely on commissions earned, getting a large number of clients is essential. And this is not possible without good communications skills.
Now that we have explained who a sub-broker is, it is also easy to assist clients with growing interest in stock market and mutually benefit from it. Angel Broking provides the infrastructure and marketing support, All you need is to become an Angel Broking Sub Broker and zeal to succeed.