i want to become a sub broker

[pankaj7]

My advice - go for commodities subbrokership

No SEBI registration fee - save on 22500 reqd for Equities
Only trades in FnO so volumes are large (1 lot of gold B+S = Rs 26 Lakhs)
Low Margin reqd (4%<) so clients can trade easily on less money
With equities failing Gold is the flavor of season and expected to outperform for next two years.
In Cash if a trader suffers losses he just takes delivery and waits for it to rise again. No trade no broke (excuse my mean streak but we are all here to earn!!!) In commodity fut he has to comulsorily square his position or take delivery (even better as higher broke) so volumes are built up automatically
The hassles are much less than equities and trade timings are more.

To summarise, you dont need to invest anything substantial to start commodities subbrokership and rewards are much greater for similar or less efforts.

A word of caution though. You need to find clients first. Commodity knowledge is still poor among people and thus comm trading is limited to HNIs or actual traders.

 

[bins_hi]

discussion was going good here... i read all talks earlier and was enjoying it.

Tell me to start MotilalOswal subbrokership type as business model is better or
to start own office of financial services(IFA).

pl advice

 

[columbus]

A 10th fail guy can become a sub broker , but cannot run the firm , as a matter of fact an MBA finance guy may not run an outlet effectively. The problem is not education , the problem is committment towards a job .. !!!

I will put effective communication ahead of commitment.

 

[SavantGarde]

First Do Not Touch Motilal Oswal, Even If They Are The Last Broker On This Planet.

Now Coming To Other Things What A Prospective Sub-Broker Should Look For Before Deciding Who To Tie Knot With.

1) Must Not Agree To Pay Deposit, Instead Any Deposit Should Be Given As Shares or Bonds, Also Negotiate The Deposit.

2) Now Coming To Brokerage Sharing, Instead Of Brokerage Sharing, Negotiate For Minimum Required By The Broker So That Anything Charged Over & Above Is Yours. Putting It Point Wise As To What You Should Settle For Broker To Keep.
a) Cash Deliivery 0.10% Minimum 2 Paise
b) Cash Square Up Same Day 0.001% One Side Minimum 2 Paise
c) F&O Delivery 0.01% Both Legs Minimum 2 Paise
d) F&O Square Up Same Day 0.01% One Side Only Minimum 2 Paise

3) Now What You Could Charge Your Clients

a) Cash Delivery 0.30 - 0.50%
b) Cash Square Up Same Day 0.04 - 0.08%
c) F&O Delivery 0.03 - 0.08% Both Legs
d) F&O Square Up Same Day 0.03 - 0.08% One Side Only
e) Minimum 4 - 6 Paise For All The Above

4) Commodities You Will Need To Check With Somebody Else To Know The Rates Or Do Some Research On Your Own.

5) SEBI Registration Is 20000/- For Both BSE & NSE (10 & 10) Registration Valid For 5 Years From The Date On The Certificate Of Registration

6) Eligibilty Is Minimum HSC (Am Not Sure) You Will Need To Check On This, Alternatively 3 or 5 Years Experience With A Broker Incase You Don't Meet The Educational Eligibility (You Will Need A Certificate From The Broker For Your Service For Submission)

7) Do Not Agree To Pay Anything To The Broker Besides The Negotiated Deposit (Either Money or Shares Whatever The Case Maybe)

8) Other Charges Asked By The Broker Are As Follows:
a) Back Office Software One Time Charge
b) CTCL IDs Depending On The Number Of Segments You Want
c) Do Not Agree To Pay The Annual Charges For CTCL IDs

9) If Printed Stationery Is Being Provided By The Broker For You To Print The Contracts & Monthly DP Statement & Etc. To e Given To Your Clients, Do Not Agree To Pay For The Stationery

10) Reasons For All The Above Points Can Be Cited As Your Investment In Infrastructure (Premises, Staff, Phones, Internet Computers & Dealer Terminals, Printer, Consumables, A/C, & Other Incidenals Such As Snacks, Tea, Coffee & Whatever As Your Part Of The Investment To Get The Business Started, Therefore Any Thing Else Required Such As CTCL IDs (Reasonably Upto 2), Back Office Software, Stationery Should Be Brokers Investment For Their Earnings From Your Brokerage Operation, Quite Reasonable In My Opinion, Now Is As Good A Time As Any To Drive A Hard Bargain. Since The Business Is Down Almost 70-80% For Most of Them (Now You Know Why MOSL Is Putting Ads For 'Business Associates')

11) Caring For Your Business & Its Growth Will Entirely Depend On Your Handling Of Clients.

12) Do Not Recommend Scrips Just For The Sake Of Earning Brokerage, If You Think The Market Is Not Right For Investment Tell Your Clients To Stay Away & That You Will Let Them Know When Is The Right Time To Start With Investments.

13) Brokerage Research & Their Team Recommending Scrips To BUY, You Will Need To Put Them Through Your Own Stress Test, To Gauge The Quality Of Their Research, Do Not Blindly Recommend Whatever Recommendations Are Given To You By Your Broker, Unless You Have Developed A Certain Amount Of Faith In Their Research.

14) Drive The Bargain Harder By Free Trading & Demat Accounts For Your Clients, You Will Be Surprised How Easily They Will Agree To That With A Wee Bit Of Resistance..

15) It Is Upto You If You Want To Charge The Clients For Account Opening & Keep The Charges For Yourself. ( I Have No View On That)

16) Do Not Get Into Any Kind Of Hard Cash Dealing, Everything Is Always Without Exception By Cheque.

17) Clients Who Look Upto You For Investment Ideas, Worry About Their Capital First, Before Your Own (This Will Keep You In Good Stead In The Long Term)

18) Ideal Mix For The Business Should Be 70-30 (F&O - Cash Respectively)

Now, Do You Still Want To Be A Sub-Broker.....

SavantGarde

 

[pantar]

u opend a new thread ? tas fine............
plenty of subbrokers in this forum.....who claim themselves to be good traders
hope they come out in light now

 

[jdvisaria]

how much should it cost, what are the risks associated with it ?
which broker is good for me ......

since im new in this field, and i know there are guys here who are very experienced and can give me better advise
thanks for your time.

Hi, Raj,
You can call me for franchsie opportunity in stock broking

 

[vaishalimahadeshwar]

a 10th fail cannot be become a sub-broker the minimum eligible criteria is HSC pass.

 

[jaitiwari4]

Dude You must be looking to Be a manager in some finance corp or a investment banker ...atleast after u do ur mba in finance....even a 10th fail guy can become a sub broker...

With great concern

A co - MBA(finance)

brother- its not a question of a 10 th fail guy to become a sub broker
.be it whatever ,if u r earning a handsome money being a sub broker .it doesnt matter being a 10 th fail .becoz money leads everything ,every one

ALSO DO REMEMBER -
IF U R AFRAID OF THE DISADVANTAGES ,THEN U CANT DO ANY BUSINESS.ITS YOUR MINDSET ,YOU NEED TO BE READY FOR EVERYTHING

I CAN SAY THAT BCOZ ,I M A SUB BROKER , THERE ARE PROBLEMS , BUT I THINK ITS NOT BAD AT ALL . THOUGH I WAS A SYSTEM ENGINEER AT IBM. I LEFT THAT JOB

 

[abhih]

hi SavantGarde n mem,

"a) Cash Deliivery 0.10% Minimum 2 Paise
b) Cash Square Up Same Day 0.001% One Side Minimum 2 Paise
c) F&O Delivery 0.01% Both Legs Minimum 2 Paise
d) F&O Square Up Same Day 0.01% One Side Only Minimum 2 Paise"

what do mean by minimum 2 paise and point b. cash intraday i.e.001 or .01%

i m lookin to take franchisee their terms are
1. 1lac deposit 75 cash 25 stock
segments(NSE,BSE.NSE F&O,MCXSX, NCDEX,MCX & DP- NSDL)
2. Commercial Terms
Sharing of Revenue commission can be

1) As sharing 40:60 to 30:70 (based on volumes) ( 60 or 70% is your share

OR
2) fixed brokerage in which you may be interested %.10....delivery .01.. % jobbing)

3.no back office charges
4.odin ids charges rs 400 pm.
5.stationery will be provided
6.free dmat ac for 2mon

whats ur suggestion on these please comment u can be of grat help thanks...

 

[jaitiwari4]

hi SavantGarde n mem,

"a) Cash Deliivery 0.10% Minimum 2 Paise
b) Cash Square Up Same Day 0.001% One Side Minimum 2 Paise
c) F&O Delivery 0.01% Both Legs Minimum 2 Paise
d) F&O Square Up Same Day 0.01% One Side Only Minimum 2 Paise"

what do mean by minimum 2 paise and point b. cash intraday i.e.001 or .01%

i m lookin to take franchisee their terms are
1. 1lac deposit 75 cash 25 stock
segments(NSE,BSE.NSE F&O,MCXSX, NCDEX,MCX & DP- NSDL)
2. Commercial Terms
Sharing of Revenue commission can be

1) As sharing 40:60 to 30:70 (based on volumes) ( 60 or 70% is your share

OR
2) fixed brokerage in which you may be interested %.10....delivery .01.. % jobbing)

3.no back office charges
4.odin ids charges rs 400 pm.
5.stationery will be provided
6.free dmat ac for 2mon

whats ur suggestion on these please comment u can be of grat help thanks...

well as far as the brokerage sharing part is concerned its fine
but plz chek out what is the registration charge of nse and bse
bcoz 1 lakh is the flat deposit which they have told u
also bargain on the deposits -try to bring it down to 75-80

otherwise there are many brokers in ther market who can provide a sub brokership at low cost