Any person aspiring to be an entrepreneur requires undertaking hard work with persistent efforts. There is no business that can be successful without putting in the needed efforts.
A sub-broker is a person who acts as a third party in between the trading agent and the investing individuals. He is not himself involved as the trading agent. Sub-brokers also work by assisting the individuals who want to invest in securities through trading agents.
If you have an aptitude towards financial markets and associated knowledge then you should try your hands at becoming a broker. It is one of the best business for you if you have the willingness to learn and explore financial markets. Moreover, the most important benefit of being in broking business is that you will hardly have to invest in the business and there will be no strict capital requirements.
Basic eligibility requirements that are needed to become a sub-broker are:
- Any person aspiring for this career should at least have done graduation. Or if not this he/she should have passed 10+2 or equivalent.
- Knowledge of financial markets is also essential for being a broker. You can also hold experience in financial issues and a comprehensive knowledge of basic financial transactions.
- You should also be well-versed with the current and latest events relating to economics, politics, and other fields. All this information has the capacity to influence the stock markets and hence you should have all the knowledge about it.
- Basic knowledge of computers is also a must while you think of being a sub-broker.
- In this competitive world, it is good if you have good better communication skills. You should be able to communicate properly with the customers.
- Management skills also form a crucial part of running any business. It is therefore imperative that you possess good management skills.
- Knowledge of mutual funds is also important when you are thinking of being in broking.
Basic capital requirements required for an individual to start a broking business
- Money is the most important matter when you start thinking of a career as a broker. It might also become a constraint in your career if you do not have sufficient money. You would need money for various purposes like,
- You’ll need to deposit money initially with the main broker. It also involves registration fee with the broker. All these deposits would be one-time and thus you won’t have to pay anytime again.
- You would also need to invest money in buying computers and other gadgets that you’ll need in doing your business. Mostly, this is also a one-time investment and over time you might have to invest in repairs.
- Apart from these one-time expenses, there are some working expenses too which you need to pay off in time. This includes paying for Internet connection, rent of your office. If you own an office then you’ll also have to pay for your staff and their expenses. Salary of the staff and other employees are also involved in this expense.
While in this business you will also be required to keep following things in mind:
- You should choose a main broker after giving proper thought. You cannot just choose a broker just on the basis of money. You should be clear about what values you are expecting from your broker.
- Another important thing that you should keep in mind is that it is not a part-time business and you need to devote all your time to it. Never ever think of it as a part-time venture.
Following the right procedure and possessing these eligibility requirements you can be a sub-broker with ease.