Business potential of stock broking agencies in India

Published on: 21 November 2018 Last Updated on: 10 September 2024

Over the last few years, quite a few stock brokers have been forced to shut shop due to weak business. This is true not only of broking but also of other businesses where automation has been taking its toll. To survive and thrive in the stock broking business you need to be able to extrapolate the key trends in stock broking and position yourself accordingly. How do you differentiate yourself as a stock broker? That is the only way you can realize the full potential of stock broking. Remember, each year Indian investors are investing more than $25 billion into equities either in direct equities or via equity and ELSS funds. That is a lot of money. How do you grab the most of this potential? There are five things that you need to be aware of.

The industry is getting divided into two segments:

In the broking industry, you either need to run with the hares or hunt with the hounds. The broking industry as a whole is getting stratified into the zero brokerage discount brokers and the full-service brokers. The room for the in-between brokers is increasingly reducing. If you want to be a discount broker then focus on an efficient offering at a very low cost. Alternatively, if you want to be at the full-service end then you need to be prepared to invest in research and technology. In the past, there was room for the median brokers who were somewhere between the full-service brokers and the discount brokers. With both these categories of brokers pushing their boundaries, the gap in between is getting squeezed. First, be clear on your positioning and your strategy should follow after that.

Be clear on the value proposition:

This is a logical corollary to the first point. What is your value proposition? Are you offering the lowest brokerage in the market? That is an advantage that is hard to sustain over longer periods of time and the model is always vulnerable to sudden changes in the market undertone. Secondly, are you offering the best advisory services in the business? This called multi-level skills in portfolio design, need understanding, portfolio customization, portfolio review etc. This is quite complicated and any advisory is always open to an opinion about success and failure. In a competitive market, this can work both ways. Lastly, is technology your USP? In the past, technology was just a tool, but that has changed. Today it is possible to look at broking as a software company and offering a robust trading model that is super efficient and intelligent.

Automate and employ technology intelligently:

If you look at how brokers are adding value to their customers, most of the value addition in the last few years is coming through technology. Thanks to broadband and the use of smartphones, it is possible to trade on the fly using your mobile app. Brokers are also employing artificial intelligence and machine learning to make machines increasingly think and strategize like humans. And then there is the all-powerful call to action. Here the customer is guided seamlessly through research, screening, and execution without really realizing that they are different parts of the trading system.

Engage the customer continuously through financial planning:

Broking is increasingly commoditized. That is more the case when you try to offer broking as a solution rather than as a service. For an investor, the solution is the creation of wealth in the long term. The solution could also be managing risk. The solution could also entail profiting from short-term trends. Most often brokers tend to confuse between the product and the solution. Focus on the solution in this industry. When you are in the financial services industry you always start with the financial goal in mind. Help the client identify long-term goals and then prepare a plan to reach these goals. As a broker you will find out how easily equity, mutual funds, and even bond sit prettily into this scheme of things. That is the best way to increase your customer engagement and improve your ROI per customer. It is just that in this case, the ROI flows naturally.

Provide a delivery platform that simple, elegant and actionable:

One of the critical success factors in the broking industry will be the variety and robustness of the delivery platform that you offer. If you offer more platforms like online, offline, mobile, call-n-trade, SMS trading, non-market trades etc, then your chances of engaging the customer meaningfully is much higher. Your delivery platform should also be seamless such that the movement between research ideas; advise, screening and execution should be smooth and with minimum clicks. That is when the clients can actually experience the value proposition.

The key issue here is that the opportunity in the broking industry is still huge. It is just that the nature of the opportunity is changing. As a broker, you need to position yourself in the bracket that reflects your core strengths the best. The rest will follow!

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How businesses can use stock trading

Stock trading is often associated with the popular mindset either with retail investors who dabble in trading on the side or financial services providers such as hedge funds. However, there’s a whole world of people and organizations out there that benefit from stock trading, and they’re not limited to these categories. Businesses that aren’t involved in trading financial instruments as their main source of income can also benefit from stock trading, and it’s actually a wise move for most people. Here, then, is how a business can enter the stock market and provide a sustainable second income stream for itself. Keep on top of developments : Running a business is a busy task: from hiring new staff to restocking the printer, there’s plenty to be thinking about. If you don’t have someone managing your business stock trades for you all of the time, then it’s definitely worth investing in a service that can help you monitor the markets and flag up any new stock opportunities that may be of interest, as well as any key market events such as data releases that could impact their value. Stock tips every week from an information provider are sensible, and it could mean the difference between a vibrant and profitable portfolio and a less successful one. Work with a broker : Buying stocks as a business will most likely require the assistance of a broker. This is by far the most sensible option to take as it means that you’re less likely to run the risk of getting ripped off or investing in a stock that turns out to be a dud. You may be under the impression that only individuals can sign up for brokers like these – but that’s not the case. Many major brokerages make this process very simple: the online interfaces of most such companies allow you to specify your company as the buyer, and you can pick from corporation, limited partnership, limited liability company (LLC) and more. If you’re an LLC or a similar organization, then your operating agreement or constitution should probably specify who in the company has the authority to buy shares using company funds. Get your goals right : The main strategic job that you’ll have to do is work out what you want to achieve with your company investment. Perhaps you’ve got a lot of cash tied up in your company and simply want a better return than the bank, or maybe you’re hoping to build a larger income stream to fund a new branch or venture. Once you’ve got that settled, you’ll be able to instruct your broker to develop a risk profile for your firm and find stocks that match your requirements. It’s not just individuals who have the ability to sign up for brokers and buy stocks but also businesses. By keeping on top of stock market developments and having a range of fixed goals, you can raise the chances that your company stock trading experience is a smooth and ultimately profitable one. Read Also : How To Start Trading On The Stock Market And Profit? Buying Stocks For Beginners: A Guide What You Should Know Before Using ExpertOption

What Do Employers Look For In A Background Check?

Background checks have a significant impact on the job search process. These checks are used by employers to establish a secure and reliable work environment rather than to spy. It's not a spy; it's a shield. This piece delves further into the what, why, and how of these checks, elucidating their place in recruiting. Think of it as the employer's safety goggles, ensuring they hire people ready to learn. Here, the goal is to shed light on the procedure rather than to lower morale. Now, let's take a leisurely stroll through the realm of background checks, revealing the meticulous procedures that companies apply to cultivate a workplace based on dependability and trust. Legal Considerations Employers negotiate a legal minefield regarding background checks to guarantee a complete and equitable screening procedure. Complying with federal and state standards and comprehending the legal structure guiding background checks are crucial factors. Accès Identité, specializing in background checks, investigations, and pardon petitions, is a significant player in this scene. They have an exclusive license from the RCMP to transmit fingerprints, demonstrating their reputation for excellence. This Private Investigative Security Bureau-licensed organization upholds the highest standards of operation. It places a great value on confidentiality while catering to a wide range of consumers. Basic Personal Data Basic personal data is the next item on the list. They are verifying that you are who you claim to be. This is when your Social Security Number (SSN), which functions as your professional ID, comes into play. In addition, they verify your name, address, and contact method. Easy enough, huh? It resembles a handshake of trust. Nothing to hide; just checking to make sure everything lines up. So, don't worry when that background check shows up; it's just a pleasant conversation to ensure you and your information agree. Criminal History Reviewing a person's criminal background is the next item on the schedule. Companies try to find any prior convictions that could hurt the company's harmony. Felons and misdemeanors are examined carefully since the seriousness of the offense can affect the assessment procedure. Painting a clear image and comprehending a person's past context are key. Work Experience As one proceeds through the checklist, employment history comes in first. Employers go above and beyond simply confirming the information on a well-formatted resume; they also take the time to confirm that a candidate's employment history and dates are accurate. The past talks loudly, and reaching out to former employers is like opening a time capsule—you can see performance reviews and references that have the power to influence the hiring decision. Educational Background The educational background is the next place this research voyage will stop. Companies work hard to verify that the academic honors proudly displayed on a resume are real. Was that degree truly earned by the candidate? Did they go to the schools they said they did? Seeking the facts to ensure the educational foundations are as strong as they appear. Credit Record Evaluating a person's credit history is an unexpected but crucial aspect of the background investigation. Employers use credit checks to determine financial responsibility outside money and cents. It is considered how this relates to the employment position, keeping in mind that financial reliability can be crucial in some professional settings. Social Media Screening Social media is becoming a digital stage for examination in the age of digital footprints. Companies search publicly accessible data for insights that cut through the formality. However, this isn't unrestricted; moral issues and legal constraints raise questions about the extent of this social media exploration. Professional Licensing Official endorsements are frequently necessary for professional excellence, and employers confirm the legitimacy of professional licenses pertinent to the position. It goes beyond a person's formal credentials to ensure they meet industry norms and the legal requirements for their line of work. Verification of References Like ghosts of the past, references tell a story written by people who have collaborated closely with the candidate. Employers contact these references to have comprehensive knowledge. However, here is where a nuanced dance between professionalism and secrecy occurs when character traits and work habits are revealed. Conclusion Employers set out on this complex path to make educated decisions rather than to act as detectives. In summary, they seek a balanced online presence on social media, legitimate professional recommendations, truthful character references, honesty in job and school claims, and an accurate criminal background. They are also looking for fiscal discipline in credit histories. A comprehensive and impartial evaluation procedure is more important than simple dissection in this complex inspection dance. Employers maneuver through this environment, knowing that every jigsaw piece adds to an individual's professional identity. Finding the ideal fit for an elaborate workplace mosaic is more important than looking for defects. So, it's more than just putting up a polished front when people go on their career search journey. It's about accepting honesty, appreciating the layers, and realizing there's a tale waiting to be revealed behind each application checkmark. Read Also: Commonly Misunderstood Facts About The Employee Retention Tax Credit Only the Best for Your Business: Check These Hiring Strategies What Are the Ways to Prepare a New Employee?

Complex Supply Chains Network and Business Complexity

Supply chains are becoming more complicated and difficult to manage as people demand faster turnaround times, a wider range of products and services, and more personalized experiences. To be able to fill more diverse customer orders, brand owners must improve how they manage inventory with their supply chain planning systems, work with their partners, and gain more visibility and control over their supply chain. We will investigate whether or not there is complexity in the supply chain visibility software and how that complexity affects service quality. Complex and Complexity Most people would agree that managing supply planning is notoriously difficult. Both are similar and dissimilar. Supply chain networks are notoriously difficult to comprehend. Relationships between Network members can be dependent, independent, or interdependent, depending on the system or external factors. Despite the complexity of the supply chain management software, operations are improved when they can be planned for. Customers When it comes to ordering, shipping, support, payment, and other aspects of service, each customer has unique requirements. Marketing is more likely to be successful if a product or service can be tailored to the needs of the target market, even if the price is higher than expected. Logistics is in charge of calculating the "Cost to Serve" for each customer, whereas Sales is in charge of ensuring that customers' price and value expectations are met. Information It can be difficult to see what the true demand and supply are when data and information are filtered and changed within and between businesses. Changes in demand at one point in the supply chain can have an impact further upstream. As a result, the operations will not go as planned. Forecasts are poor and costs are higher because there is insufficient planning data at each level of the strategic supply chain management. Many factors contribute to an increase in demand, including: Attempting to forecast demand by analyzing internal order and shipment data Prices change when you can buy more of something for a lower price per unit. The term "deals" refers to everything from buying in bulk to investing. Rationing and a lack of supplies result from large orders. Planners may decide to extend lead times in order to avoid dealing with capacity issues. Product This occurs when various materials, parts, or assemblies are combined. When BOM parts have little in common, it can be difficult to change production schedules to keep up with changes in product variety or demand. Materials, parts, and packaging are selected in a laboratory or design studio. As a result, these variables may influence procurement decisions about supply markets, which may have an impact on TCO and product prices. Variety One can anticipate an increase in the number of goods and services available in a given market. According to marketing, you should always grow rather than shrink, so instead of getting rid of something, do more of it. As a result, the "long tail" of low-selling products has expanded. Forecasts are less accurate and extra inventory must be discounted if a company does not have an "agile" production structure that can respond to small orders. Because of standard costing, high-volume products pay a larger share of overhead than they should, lowering margins and affecting supply chain planning systems and marketing decisions. Low-volume products, on the other hand, do not pay enough overhead to cover their complexity. Planning The Availability target of the supply chain management software companies necessitates careful management of capacity, inventory, and lead times. What measure do managers actually use, regardless of what they say? Is it rated, useful, tried and true, or inexpensive? How does capacity change when demand is unpredictable? Depending on how much money is spent, how long it takes to implement the changes, and how much money is required for the process. A company's inventory must be in good working order in order for it to achieve its objectives. - place (customer, business or 3PL warehouse, suppliers)- FG, RM, and status of postponed/incomplete- most effective (cycle, safety, seasonal build, etc.) Inventory decisions can have an impact on capacity and lead times. Bringing capacity, inventory, and lead times together is the first step in shifting a company's mindset from "silos" to "flow thinking." Flow thinking implies that money, data, and information move through the organization more smoothly and efficiently. Suppliers The number of Tier 1 suppliers determines the amount of time procurement professionals have to develop business relationships that improve procedures, reduce "emergencies," and lower transaction costs. When there are too many vendors, communication becomes difficult and things become complicated. Procurement professionals who are well-versed in their supply markets and adept at managing the items they purchase can ensure that Tier 1 suppliers and item availability are optimally balanced. Processes Both internal Tier 1 suppliers and customers, as well as customers from outside the company, manage core planning in supply chain management. It's possible that these practices were implemented initially and then modified to meet changing needs. When TLS (theory of constraints, lean, and six sigma), a popular method for improving operations, is added to MBWA, strategic supply chain managers have even more opportunities to grow (management by walking around). It is necessary to take your gaze away from the screen and discuss how the team is doing. Managers work backward from the end of a process, mapping formal and informal connections between parts and asking "why?" at each step. Addressing Complexity Supply chains are inherently complicated. Supply chain professionals must be aware of all the minor details that give their company an advantage over competitors and that customers are willing to pay more for. Because complexity is a part of the unknown, your company could design a structure that prioritizes adaptability and reconfiguration. This would assist it in dealing with the ever-changing political, social, and economic landscapes. Supply chains become more complicated as businesses expand and gain more clients. We've already discussed the importance of developing and maintaining relationships with suppliers and partners if you want to expand your customer base. Managing these critical customer relationships entails more than just negotiating, evaluating, and making the most of them. Other difficulties arise as a result of it. Partners must be able to see each other for success, and suppliers must collaborate. The supply chain planning process becomes more complicated and longer as the number of customers and types of goods sold increases. International shipments with multiple stops split orders, and customs clearance all require more effort. When you have a complete picture of the supply chain, you can better predict problems, deal with them as they arise, and inform your clients about what to expect. This model can no longer meet the needs of order fulfillment as there are more products, more ways to ship them, and more customers around the world. Today's strategies must be adaptable and quick to change in order to meet each customer's needs quickly and affordably. Each customer order necessitates a link in a "micro supply chain." We also have a difficult inventory problem that requires assistance from our suppliers. Stock on the shelf can impair a company's ability to make money. Suppliers, manufacturers, warehouses, partners, and suppliers are all currently stocked. The "bullwhip effect" of unsold inventory can only be stopped now by having complete visibility and control over the network. There is a wealth of data available to help supply chain decision-makers. This is extremely perplexing. The data should also be used to make real-time order decisions in the logistic management software, which will benefit both the company and its customers. There are data gaps because there are more systems, partners, and complexity, which necessitates greater supply chain visibility. Additionals: Why Automate Internal Logistics? What are 3rd Party Logistics Companies? Essential Logistics Terminology Every Entrepreneur Should Know 5 Tips For Transport & Logistics Business Owners Before Investing In Insurance

Business potential of stock broking agencies in India

The industry is getting divided into two segments:

Be clear on the value proposition:

Automate and employ technology intelligently:

Engage the customer continuously through financial planning:

Provide a delivery platform that simple, elegant and actionable:

How to Save a Struggling Company

Five Reasons Your Business Needs Incident Management Software

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

How businesses can use stock trading

What Do Employers Look For In A Background Check?

Complex Supply Chains Network and Business Complexity

Business potential of stock broking agencies in India

The industry is getting divided into two segments:

Be clear on the value proposition:

Automate and employ technology intelligently:

Engage the customer continuously through financial planning:

Provide a delivery platform that simple, elegant and actionable:

Share this Article

How to Save a Struggling Company

Five Reasons Your Business Needs Incident Management Software

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related