How You Can Start Your Own Stock Broking Franchise

Well, are you interested in starting your own stock broking firm? It is well within your means if you have the perseverance, and determination needed to start your own stock broking firm.   These are the guidelines for you to start your own broking business Certification is mandatory You need to pass an examination conducted by the SEBI- Securities and Exchange Board of India. Anything to do with dealing in shares or securities at the Indian stock markets goes via SEBI. You also need to have a very clear idea of the shares and securities listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). These are the nation based stock markets which help traders perform trade on a day to day basis. Getting your certification done is, therefore, the first and the foremost step to starting your stock broking franchise. Infrastructure You can either rent out or lease out a commercial property. You need to have spacious premises for starting your own share trading franchise as you will be dealing with several clients who would be trading with you every single day. You would also need Dual Processor PC 's for the office you plan to set up. If you cannot buy brand new computers, you can start the firm with used computers, as well. Brand new computers can work with enhanced speed and connectivity. Build your own client base You need to at least bring in a good number of clients who would be trading with you every day. You can refer your stock broking franchise theme among your friends or relatives who might show a willingness to join you. You can also issue pamphlets and brochures among the common public, letting them know that you have a stock broking firm. You can add attractive or lucrative offers and help them start with a minimum base capital, in order to pool in more customers for your business, as such. Building a solid client base is a very important step in starting your own stock broking franchise.   Collect margin deposit from your clients You will now need to start collecting the deposit money or the margin money from your clients. The price range can differ per client. The margin money is otherwise known as the capital base, with which you can help your clients buy and sell shares and securities from various companies. A higher margin deposit helps you get a better exposure. You can also use the money to purchase high-end blue chip stocks on behalf of your clients. Educational qualification and experience required to start your own stock broking franchise You at least need a passed SSLC or a PUC certificate along with the SEBI issued broker certificate to start your own stock broking franchise. A thorough understanding of how the share markets work and operate is absolutely mandatory for you to perform well in the business. Monthly turnover As a sub-broker, you will have to trade volumes for both cash transactions and for F & O. You will be entitled to receive a brokerage fee per transaction if you have proved a sustainable or superlative goodwill among your clients and the broker you submit the work to. For lighting and other day to day expenses You can ear-mark a provision of funds towards paying for rent, lighting and for the internet consumption every month. The amount might even be more than the amount stipulated for the same. You need to keep the money well in advance to pay for the facility. Brokerage money After deducting all expenses and upon paying the clients, the brokerage commission for every transaction will be calculated accordingly. This happens between the 10th and 15th of every month when the amount will directly be credited to your bank account. You now have the complete step by step approach on how to start your own stock broking firm. You can run your share trading franchise in a successful manner if you keep updating yourself with the latest developments happening at the stock markets every now and then. You need to approach the chief broker for getting all your doubts clarified. Only then, you will be able to guide clients or customers towards doing the business in a great manner.