Stock trading is trending in India.  Your friend was talking about his gains in equities this week as he was last month. But, you didn’t pay much attention. Then, it was your uncle asking if you knew anything about stocks. You didn’t. Your friend did. So, you simply connected him with your friend. Your eyebrow first got raised when a neighbor boasted how great her kid was doing – earning a decent income by investing in stocks. Since then, you’ve heard countless people showing their interest in stocks.
The report of a stockbroker adding lakhs and lakhs of investors every month was your final tipping point. The trend is for real and you want to bank on it to earn a decent sum. You don’t want to sit on the table. You want to own it all together! In other words, sub-broking is your piece of the cake.
But, how to become one? Here is a step by step guide for you:
A sub-broker is someone who assists investors in dealing with buying and selling of securities on the bourses. While a sub-broker is not a trading member of the stock exchange but he/she assists stock brokers in delivering services to the clients.
Once you have decided to be a sub-broker, here’s what you’ll need to do.
1. Qualification: You will need a minimum qualification of 10+2 or HSC. However, some brokers may prefer at least a graduation degree before appointing you as their sub-broker. Your knowledge of financial markets needs to be high. There are a number of exams that you can undertake to be eligible to join a good broker. Some of the famous exams are, NCFM (NSE certification in Financial Markets), BCSM (BSE certification on securities markets), NISM courses, among others.
2. Documentation: Once you and your broker’s requirements coincide, you must complete the documentation. It will include certain ID documents such as PAN Card, Aadhaar Card, and Education Proof (some brokers mandate an educational qualification of 10+2). Apart from it, address proof of your residence and your office will be required alongside photographs and a reference letter from a CA. Check if anything else is required as well.

3. Pick your brokerage firm wisely: You must never sell something that no one wants to buy. So, conduct thorough research about brokerage firms and which one is being better liked by investors. Your broker must have good brand equity and recall value. It will help in acquiring new clients with ease. Generally, customers prefer firms that have a flat fee structure, value-added services, and extend spot-on recommendations.

4. Check for requirements: To be a sub-broker, there are certain conditions that you need to meet. As a sub-broker or a master franchise owner, you will require an office space of roughly 200 sq. ft. This space typically depends on the brokerage firm you’re going with. You will also need to deposit a refundable fee of around Rs. 1 lakh to Rs. 2 lakhs or more. Lastly, check the commission structure of your broker. However, with present conditions and with the option of Work-From-Home, the requirement for an otherwise commercial space is optional.

5. Provide Basic Details: Request for an initial callback. You will be asked a few basic questions related to the business along with other details. It will ensure that both you and your broker are on the same page before moving forward.

6. Registration Fee and Account Activation: Lastly, you will need to deposit the registration amount. After you’ve made your payment, you will receive a business tag against your account. Depending upon your broker, you and your employees will receive training and education on trading platforms, customer support, and marketing mechanisms.
India, despite its population of over a billion people, has very low retail participation. Now, stock markets are one of the best investment instruments. They are known to generate better returns than conventional investment products. With increasing digitization and growing awareness, retail participation in stock markets is going through the roof in India, but it still hasn’t scratched the surface yet, leaving ample opportunities for people to take up the profession of a sub-broker. So what are you waiting for?

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