Key Point to start Business as a Sub Broker
1. Selecting Good Broker
How to select good broking house if you fail your business fail.
Broker always not pay brokrage cheque in time. Always make query & delay brokrage cheque.
As per my view first checkout how is pay time to time. Selecting whichever Broking House first ask some sub - broker about that firm what issue they face. Don't belive on Brokers RM or Marketing Person, they always say I am good in Market. Brokers RM says asked this Sub Broker about our company but you search your side because RM suggested Sub Broker say it's good company they reffer only favorable sub broker for this issue.
2. Capital & Infrastuture
Security Deposit - It's depends on you
Office area : 100 sq.ft (min)
Computer : 1 for Terminal & 1 for Back Office work
Scanner : 1 for document scanning
Printer : not compulsary but good for client service issue.
Phone : 1 landline & 2 mobile line
Broadband : internet connectivity
3. Qualification
Eligibilty Is Minimum HSC (12th pass)
Need to clear NCFM exam for Cash segment & Derivative Segment Terminal Registrtion purpose
NSE Capital (Dealer) Module
NSE F& O Module
commodity module
4. Security Deposit
Security Deposit very form Broker to Broker, not any hard rule for deposit by SEBI. It's depend upon Brokers.
That why not Agree To Pay Deposit, Instead Any Deposit Should Be Given As Shares or Bonds, Also Negotiate the Deposit
Do Not Agree To Pay Anything To The Broker Besides The Negotiated Deposit (Either Money or Shares Whatever The Case Maybe)
5. Sharing Ratio or Brokerage Commission
Two type of brokrage commission paid by broker
1. Fixed Ratio
2. Minimum brokrage
a. Fixed Ratio : Easy process to calculate your brokrage. 70:30/ 60:40 or 50:50 is the normal brokrage structure sub brokers use.
70:30 ratio mean if you genrate 1 lac brokrage your sharing is 70 thousand & company sharing is 30 thousand.
b. Minimum Brokrage : Negotiate minimum brokrage by the Broker so that anything charged over and above is yours.
Delivery : .10 paisa
Intra day : .01 to .03 paisa both legs (buy & sell)
same day squre up.
F&O : .01 to .04 paisa
Commodity : .01 to .04 paisa
Now what you can charge to client
Delivery : .20 to .70 paisa
Intra day : .03 to .05 paisa
same day squre up.
F&O : .02 to .05 paisa
Commodity : .02 to .05 paisa
Client Charges Brokrage - You negotiate broker = its's your profit
6. Other Charges
Back Office Software Charges : Some broker charge for this. We are Sharing Brokrage that why don't agree for this charges.
CTCL ID depend on terminal ID you want
Stationary 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
Insist Free D'mat/Trading A/cDrive The Bargain Harder By Free Trading & Demat Accounts For Your Clients, You Will Be Surprised How Easily They Will Agree To That for 2-3 month but you insist for 6 month to 1 year. (Good Period for you to convert account for 3 month it's not possible to convert)
