One of the most prominent advantages you gain from being a sub broker, especially if you get appointed to a reputed brokerage, is the knowledge you receive. If you work under an experienced broker, you can gain a wealth of information about the markets. This can be used to further your own trading career or any trades and investments that you may want to make in the future. While sub brokers do not function as complete brokers, they are allowed to trade with the brokerage they work with. The result of an exponential increase in the demand for brokerage services has led to the rise of the sub broker being an important professional in the stock market industry.
Starting a sub-broker franchise of your own is a huge decision. It requires a lot of patience, dedication, and focus to become successful. If your goal is to start a sub-broker business, it is not only crucial for you to know just how to do it, but also to know how to grow your franchise. Here are some tips that can help you out in this regard.
Okay so, before we get to the part where we see how you can grow a sub-broker franchise, let’s quickly take a look at a few things that you would first need to do to get it off the ground. Here are some things that you should follow.
1. Firstly, you should focus on choosing the right stock broker with whom you would like to start your sub-broker franchise.
2. Once you’ve chosen the stock broker, the next step would be to ensure that you meet the eligibility criteria set by the broker. The criteria tends to vary from broker to broker.
3. After that, get yourself enrolled with the stock broker. The enrolment process involved submission of duly filled application forms, relevant documentary evidence, and payment of security deposit and registration fees. The security deposit varies from one broker to the other ranging anywhere between Rs. 50,000 to Rs. 3,00,000.
4. Upon submission of all the relevant documents and payment of all the requisite fees, the stock broker would then verify your application and documents. This verification process is likely to take a few days.
5. Once your application is successfully verified, you will then be provided with your sub-broker login credentials, which you can use to get started with the business.
Here’s the hard part. Now that you know how to start a sub-broker business, it is time to focus on growing it. Developing your sub-broker franchise requires a lot of effort, time, and dedication. That said, here are some tips that you can follow.
1. Work towards building a database of prospective clients. Reach out to your friends and family first. And through them, try to get as many contacts as possible who might be interested in availing your services.
2. Once you’ve built your database, the next step is to reach out to them. Send emails or even better, cold call them. Introduce yourself to them, let them know how you got their contact information, and proceed to explain how you can help them invest in the financial markets.
3. If you get a positive response, then try to set up a meeting as soon as possible. This will help you build a trustworthy relationship.
4. If you land a client, request them to make referrals. Also, don’t stop with cold calling just because you’ve landed a few clients. Continue doing it regularly.
Individuals who are engaged in stock market investing and trading, both at a retail and corporate level, are only growing by the day. The stock markets are popular places to seek investments and the more the demand for brokerage services grows, the more it will develop for sub brokers as well. While becoming a broker requires you to attain several certifications and authorisations, being a sub broker lets you undertake similar broking operations, but without being a listed trading member affiliated to the stock market. Hence, by being a sub broker, you can work in a field that interests you and become educated while you are at it, without the huge amount of paperwork involved.
Ensure that you employ all of the tips mentioned above and watch as you effortlessly start and grow your very own sub-broker franchise in an efficient and profitable manner.
Related Articles: How To Choose The Right Sub Broker Franchise In India | 10 Qualities A Sub Broker Must Have To Become Successful | Difference Between Sub Broker Franchise And An Authorised Person | Key Points to start Business as a Sub Broker