How to become a stock broker : We can directly buy or sell any stock from stock exchange. To buy or sell stocks you should open demat and trading account at first with any broker. With the help of trading and demat account you can buy or sell the stocks. In return of giving you the trading facility stock broker charge a fee. This fee is called brokerage charge. There is other charges that stock broker charges. Many people between you have the question that how to become stock broker? And also discuss about stock broker related questions.
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To make career as a stock broker you should at first register with SEBI. After apply in SEBI for registration SEBI will check all the necessary equipments like have you company and the man power who manage the whole company? After successful registration SEBI will give Certificate of Registration. After that you have to take the membership of stock exchange (NSE,BSE). To get the membership of stock excange you have to pay membership fees and security deposits.
How to become a stock broker or sub broker or authorised person ?
To be the member of stock exchange there is a criteria. That is …
- Minimum age 21 years.
- 2+ years of work experience with a stock broker and also see
- your networth.
Except this you have to do other registration like Depository Membership (CDSL,NSDL). That share we buy in delivery order is stored in depository as electronic form of this share. So for this stock broker pays membership fees and depository fees and also takes the depository membership.
So to become stock broker needs many registration, paperwork and money. Brokers have to maintain customer’s details and lasers and there us also many compliances. Stock broker should appoint a compliance officer who manage the compliances activities. And stock broker should develop a good trading software and mobile app. So for this equipments a good amount of money is needed. So to become stock broker you should have 3-5 crore rupees.
If you have not the capital or you do not want to invest the capital then you have another option. And this is that be a sub-broker of a broker. Sub-broker work on behalf of broker. To become a sub broker there is a few need of paperwork and money. In 2009 SEBI introduced the stock market the concept of Authorised Person or AP. To be authorised person of a broker you have to register in stock exchange. You do not need to register with SEBI. The function of authorised person or sub broker is about same. Authorised person just do not need to register with SEBI.
To become authorised person you don’t need to register yourself in stovk exchange personally. The broker whom under you want to be authorised person do the registration process for you. There is a qualification criteria for to be authorised person. And the criteria is that 12th standared pass is compulsory and the basic documents and 2000-3000 rupees.
After be the authorised person under a broker that much demat account is opened by you broker will share a percentage of brokerage fees to authorised person for those demat accounts. If broker will share 20% brokerage fees to authorised person for the demat accounts then the brokerage fees is generated by this demat accounts 20% of this brokerage fees will be shared with authorised person.
If you have any query related how to become a stock broker or sub broker or authorised person please comment below so that this topic can be covered.
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FAQ about How to become a stock broker ?
How to become a stock broker ?
Except this you have to do other registration like Depository Membership (CDSL,NSDL). That share we buy in delivery order is stored in depository as electronic form of this share.