How To Become a Sub Broker in Stock Market?

Charlotte Miller

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In today’s competitive market, starting a firm with a small initial investment is difficult. Every firm requires a significant investment and entails numerous dangers, the most important of which is the chance of failure. They also require enough working capital to cover the day-to-day expenses that a firm must pay in order to stay afloat. And, as far as knowing how to become a subbroker is concerned, it isn’t as complicated as it appears.

Who Is a Sub Broker?

A sub-broker is someone who serves as an agent on behalf of a Trading Member (a stockbroking firm). A sub-broker’s job is to help investors with their stockbroking business transactions in shares and other securities. Other roles and responsibilities include the following:

  • Actively participated in the stockbroker’s business growth and sales process.
  • Ensuring that their clients’ trades are of high quality.
  • Assisting their clientele in making well-informed trading judgments.
  • Making financial and stock recommendations to their clientele.

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How to Become a Sub Broker?

Let’s look at how to become a sub broker:

  1. Choose a sub-broker franchise model: Firstly, you’re required to choose the best sub-broker franchise model that you wish to be a part of. Read through the various business models and choose the model that you like. Then check the eligibility criteria – for individuals, these are quite basic.
  2. Document submission: After ensuring that you meet the Sub broker eligibility requirements, the next step is to submit all of the necessary documentation to the stockbroking firm with which you wish to form a partnership. The following documents have to be submitted:
  3. Sub broker registration form
  4. Stockbroking House and Sub Brokerage Agreement, fully signed by the applicant.
  5. The applicant’s proof of address. The following are examples of acceptable proof of address documents: 
  6.     Latest telephone bill
  7.     Latest electricity bill
  8.     Valid ration card
  9.     Valid passport
  10.     Valid driving license
  11.     Bank statement of the previous month
  12. Proof of experience certificate. This is required when the applicant’s qualification is lower than HSC.
  13. Other relevant documents as necessary.
  14. In addition to submitting all required documents to the stockbroking business, you must pay a processing charge of Rs. 2,000 plus GST.
  15. After receiving the documents and fee, the stockbroker will electronically submit your application to the exchange and pay for the processing of the sub-broker application form on your behalf.
  16. Following that, the exchange meticulously examines all of the documents to ensure that they are free of errors. In the event of a discrepancy, the exchange will send the application form and supporting papers back to the applicant for correction and re-submission.
  17. After the exchange has approved your application form, you must pay the SEBI registration fees to your stockbroker, who will subsequently pay the exchange on your behalf.
  18. SEBI will issue you a sub-broker registration certificate and a registration number after you have paid the SEBI registration fees.

You have officially been deemed a sub-broker once you have the registration certificate.

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One of the top sub-broker franchise concepts is offered by Choice. Partnering with Choice gives you access to a powerful brand name, an intuitive tab-based advice platform, cutting-edge trading platforms, and best-in-class research reports, to mention a few benefits.

You will also benefit from a high revenue-sharing model, personal help, and risk management methods if you choose them as a business partner.