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Currently, India is home to around 50 well-established brokers. These organizations are all members of the NSE and BSE. They provide different investment instruments to their clients in exchange for a brokerage fee.
Now, to build a strong and wide network of customers, they have a business model called sub-brokership/franchise. In this, individuals and organizations can partner with brokers and provide their services in the market.
To help novice investors/clients with their investment goals, sub-brokers use the broker’s tools and resources.
These resources can include advising tactics, trading platforms, in-depth research reports, and market know-how, among many other tools.
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Role of Sub Broker
The role of a sub-broker is to grow the customer base of the brokerage firm in return for a good percentage of the revenue generated from the client’s trading activities.
The more clients you can bring to the broker as a sub-broker, the higher your revenue-sharing will be.
Finding the Best Sub Broker Franchise providing a high revenue share is also very important.
How To successfully run A Sub-Broker Business
If you have gained all the knowledge about how sub-brokership works, it’s time to show your proficiency in the stock market. Start by filling out all the necessary documents, and then wait for the account to get activated.
Once all the procedures and setup are done, you can begin providing the clients with the services on behalf of the broker. Even to set up these services, a very low investment is required. But when starting something new, it may seem overwhelming.
The following actions are crucial for running a sub-broker franchise successfully:
Knowledge
Irrespective of the utility and purpose, you, as a stock market member, need to be proficient in all the concepts of financial markets. Make sure you are familiar with every investing tool.
Trading platform
Additionally, you want to have a well-established trading platform with a sizable clientele. The likelihood of generating maximum income increases with the size of the customer network.
Exemplary customer service
Possess a solid foundation for customer support in terms of infrastructure. The network will grow, and you’ll get loyal customers if you’re quick to respond to client questions.
5 must-have qualities of a Sub Broker
Like any other industry, sub-brokers require skills and knowledge to survive in the competitive market. Here are the top 5 qualities that come in handy to a sub-broker, so make sure to develop them.
Research Capabilities
Since all the responsibilities of a sub-broker constitute direct interaction in the financial and stock markets, you must be familiar with using the technical analysis tools, if not an expert. This will help you in sharing educated decisions with the clients.
Proactiveness
The stock market is a very fast-paced industry. Things are shifting every minute, so make sure you are proactive when taking the initiative to reach out to the clients.
Regular follow-ups will help in keeping everyone in the loop with the investment goals and current investment activities. Such initiatives also will help build a trustworthy relationship with the brokers.
Management Skills
The lifeblood of a sub-broker company is its clients. So you would possess the right management skills to allot time to all the clients.
The more efficiently their goals are met, and grievances are solved, the better your brand name will be. Along with management skills, try to work on your interpersonal and persuasive skills.
Technical proficiency
As much as bookish knowledge is required in this field, the same magnitude of efficiency is required in handling the tools and technologies of this industry.
Most of the trading happens online using different trading platforms and analysis tools. Therefore, hone your technical skills to conduct the activities correctly.
Clear vision
As a novice in this field, it is important to have a clear vision of milestones and tractions to be achieved in the upcoming years.
This will help guide your actions toward achieving defined goals, and you will be able to achieve the success you desire when starting the franchise.
Conclusion
The sub-broking community has a very strong foothold in the stock market. Most new traders look for a sub-broker when they start trading, so there is always a demand. And if you can provide the right expertise and advice to them, success is imminent in this field. The more clients trust you, the wider your network will become, and you will be able to earn high revenue.
