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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Lease Vs Buy: What’s Better For The USA Based Business

Small business owners face numerous considerations when deciding whether to purchase or lease a business facility. Once a business owner identifies their specific facility requirements and successfully locates the ideal property, they encounter another crucial choice: Should they buy or rent the property? This decision arises in two distinct scenarios: First, when the owner of the desired property is open to either selling or leasing it, and second when you have multiple options, some available for purchase and others for lease. To make this decision confidently, it's essential to evaluate the financial aspects and the determining factors that influence the suitability of leasing versus buying a business facility. Comparing The Economics Of Leasing Vs. Buying What should you go for when it comes down to lease vs buy for business? In business decisions, few choices are as pivotal as determining whether to lease or buy assets. This holds for many assets, from real estate to equipment, vehicles, and more. This decision can have significant financial implications for business owners, and understanding the pros and cons of leasing versus buying is crucial for informed decision-making. Let’s explore the economics of these two options, exploring the advantages and disadvantages of each to help business owners make the right choice for their specific circumstances. The Economics Of Leasing Leasing, as a financial arrangement, is a concept that extends beyond the realm of property and includes various assets such as vehicles, equipment, and even software. At its core, leasing is a method of obtaining the use of an asset for a specified period while making regular payments to the asset's owner, whether it's a lessor or a financial institution. The economics of leasing involve several key factors that affect the decision to lease rather than purchase outright. One of the primary economic benefits of leasing is the conservation of capital. When you lease an asset, you avoid the substantial upfront cost of purchasing it. This is particularly advantageous for businesses, allowing them to allocate their capital to other essential operations or investments. For individuals, it means not having to deplete their savings to acquire a costly asset, whether it's a car, a piece of machinery, or even a home. Leasing often offers more predictable and manageable cash flows compared to outright ownership. Lease agreements typically involve fixed monthly payments over the lease term, making it easier to budget and plan for expenses. Tax benefits can also make leasing an economically attractive option. In some cases, lease payments are tax-deductible as a business expense. This can lead to significant tax savings for companies. However, tax benefits can vary depending on the asset being leased and the specific tax regulations in place. However, There Are Economic Drawbacks To Leasing As Well: Long-Term Costs: Over an extended period, leasing can be more expensive than buying, primarily due to the cumulative cost of lease payments. No Equity Buildup: When you lease, you do not build equity in the asset. It remains the property of the lessor. Limited Control: The lessee must adhere to the lessor's terms and conditions, which can be restrictive. The Economics Of Buying The decision to buy an asset, whether a property, a vehicle, or any significant investment, is a fundamental economic choice with both immediate and long-term financial implications. Understanding the economics of buying involves considering various factors that impact the purchase decision and how ownership affects one's financial situation. One of the central economic aspects of buying is the upfront cost. When you decide to buy an asset, you typically need to pay the full purchase price, which can be a substantial one-time expense. This upfront payment represents a significant commitment of financial resources and can affect your liquidity, especially for big-ticket items like real estate or high-end machinery. Buying an asset often means having complete control and decision-making authority over it. You can customize, modify, or use the asset as you see fit. This sense of ownership can be economically empowering, allowing you to tailor the asset to your specific needs or preferences. Mortgages and loans are common financial instruments for buying high-value assets like real estate or vehicles. These arrangements enable individuals to spread the cost of the asset over time. While loans may involve interest payments, they make the purchase more accessible and can be financially strategic. However, Buying Also Has Its Economic Downsides: Higher Initial Costs: Purchasing assets often requires a substantial initial investment, burdening businesses with limited capital. Risk of Depreciation: Some assets, like vehicles and certain equipment, can depreciate over time, impacting their resale value. Maintenance Costs: Owners are responsible for maintenance and repairs, which can be costly. Reduced Flexibility: Selling owned assets can be time-consuming and might not be feasible in rapidly changing business environments. Factors To Consider When Making The Lease Or Buy Decision The lease vs. buy decision is critical and can significantly impact a business's financial health and long-term prospects. To make an informed decision, business owners must weigh several important factors. Here are key considerations to keep in mind: Financial Considerations The financial aspect is often the cornerstone of the lease or buy decision. One of the initial considerations is the upfront costs. Buying a property typically involves a substantial financial commitment, including a down payment, closing costs, and potential expenses for renovations or furnishing. On the other hand, leasing usually requires a security deposit and the first month's rent, which are notably lower than the upfront costs of buying. Another critical financial factor is the monthly expenses associated with each option. While leasing tends to result in lower monthly costs than buying, owning a property often entails higher mortgage payments. However, these payments contribute to building equity in the property. Additionally, the potential for property appreciation is a financial consideration, as owning a property allows you to benefit from the property's value increase over time. Conversely, leasing may increase annual rent, impacting your financial planning. Lastly, the tax implications are significant. Property ownership can provide tax benefits, such as deductions for mortgage interest. In contrast, leasing does not offer these tax advantages but may simplify financial management. Long-Term Goals Your long-term objectives play a pivotal role in the lease or buy decision. Buying might be the more suitable choice if you are interested in benefiting from property appreciation and potentially selling the property for a profit. On the other hand, if flexibility is a priority, such as the ability to relocate or change your living situation without the responsibilities of property ownership, leasing provides greater adaptability. Understanding your long-term goals is crucial in deciding to align with your aspirations. Responsibilities and Maintenance The responsibilities and maintenance associated with each option are essential factors to consider. Property maintenance costs, such as repairs and upkeep, are the responsibility of property owners. Leasing, however, often shifts these responsibilities to the landlord responsible for maintaining the property. Moreover, property ownership allows for customization and renovation, allowing you to modify the property to your preferences. In contrast, leasing may come with limitations on modifying the property, as any alterations typically require landlord approval. These factors highlight the practical aspects of the lease or buy decision and the degree of responsibility you are willing to undertake. Market Conditions The state of the real estate market at the time of your decision is a critical external factor. It can significantly influence the cost-effectiveness of leasing or buying. Buying may be more advantageous in a buyer's market, characterized by lower property prices and favorable interest rates. In contrast, leasing might be the more prudent choice in a seller's market with rising property prices, as property prices may be inflated, making buying less cost-effective. Duration of Stay Your anticipated duration of stay in the property is a key factor. For a short-term stay, leasing is often a more practical option. Buying may not provide enough time to build equity and recover the upfront costs of property ownership. Conversely, plan to stay in the property for an extended period. Buying can be financially advantageous in the long run, allowing you to benefit from property appreciation and build equity over time. Making The Decision The decision to lease or buy should be based on your business's unique needs, financial situation, and long-term goals. Conducting a thorough cost-benefit analysis, factoring in your specific circumstances, and considering how the economics of leasing or buying align with your business strategy is advisable. Read Also: How Business Owners Can Better Utilize Freelance Work 5 Office Organization Tips Every New Business Owners Must Know Alternative Business Financing – What Is It And How Do You Do It?

Demystifying the Duty of a Company Secretary in Hong Kong

The Hong Kong Companies Ordinance, Chapter 622, makes it mandatory for every company to be registered in Hong Kong to have a company secretary. So important is the company secretary that indeed, your company will not be registered without one. In this post, we will look at the duties of a company secretary in a Hong Kong company. What is a Company Secretary? First, it is important to appreciate that a company secretary is completely different from common clerks who do clerical work. According to the Companies Ordinance, a company secretary is a senior officer in a company who is responsible for efficient administration, especially with respect to ensuring compliance with statutory requirements. So, you need to ensure that only the most qualified and committed person gets the job. The Main Duties of Company Secretary From the definition of a company secretary, there is no doubt that the roles he does and how he does them will greatly impact the company's success. So, let us start by understanding the duties of a company secretary. Fulfilling the Company’s Tax Obligation When opening a company in Hong Kong, it is important to understand that the administration runs a business economy because the registered enterprises serve as the primary source of revenue. Therefore, the administration takes tax matters very seriously. Your company secretary is charged with the responsibility of ensuring that the company meets all its tax obligations. Some of these obligations include: Overseeing the filing of the tax returns correctly and on time. Seeking additional approval or clarifications on tax-related matters. Registering the company with IRD (Inland Revenue Department). Keeping Statutory Books The Hong Kong Companies Ordinance also designates the company secretary as the custodian of the statutory books. This implies that the secretary should have every document that the government might need to inspect. In addition to keeping these books of account, the company secretary is also responsible for: Updating the details on statutory books. Producing and distributing company accounts and reports. Planning and Attending Company Meetings As we indicated earlier, the company secretary is involved with top-level management, and one of that roles is planning the company's meetings. This is considered an important role because it is in these meetings that actions to be taken on different areas, such as books of accounts and employment, are made. Here is a breakdown of these duties: Organize board meetings. Participate in board meetings. Prepare the agenda of the company meetings. Implement the decisions made during meetings in compliance with laws. Advise the company on compliance with the law. Other Duties of a Company Secretary While the roles we have outlined above are considered the core for a company secretary, they are not the only ones. Other administrative duties include: Communicating with shareholders, the Stock Exchange, and regulatory bodies on behalf of the company. Observing the company developments and giving advice to the board of directors. Guiding the company through the process of liquidation. If you are planning to incorporate a company in Hong Kong, the position of a company secretary is very important and should only be entrusted to a qualified and experienced person. With the best company secretary, you can rest assured that the business will make the best decisions and grow into the multinational of your dreams. Read Also: A Closer Look At The Common Types of Business Accounting Services How Portal Software Improves Communication Between Board Members 5 Places you should see if you’re visiting Hong Kong for the first time

What Makes A Great Streaming Service?

Streaming has undoubtedly become the primary way younger generations consume visual content. In the past decade, we’ve seen streaming grow from a unique luxury to a popular commodity, with new platforms emerging yearly. While there is a variety of platforms to choose from, not all are created equal. There are several key qualities and characteristics viewers expect before they commit to spending their hard-earned money every month. So, what makes a great streaming service? Let’s take a closer look. Diverse Storytelling Whether we’re watching movies or television series, storytelling is one of the primary reasons we tune in to our favorite programming. This media is considered an escape, allowing us to immerse ourselves in another time and place for an hour or more. When it comes to streaming platforms, there are plenty of stories being told, from fictional fantasies to authentic, real-time stories. Diversity within those stories is crucial to giving credibility to a streaming platform. Viewers want to see inclusion and diversity reflected in the content they consume — whether it’s a superhero tale that takes place in another universe or an informative series like Songs by an Immigrant from Broadstream’s catalog of original storytelling and interviews. It’s not enough to have a large catalog of programming, it’s important for these services to tell everyone’s stories because audiences deserve to see themselves reflected in visual art. Quality Services When you’re streaming, whether it’s on your television, laptop, or mobile device, the last thing audiences want is to be subjected to buffering videos or lose their connections completely. How a streaming service operates is just as important as what they’re offering. The length that a video takes to load is a small but important factor. If a film or series isn’t loading quickly, viewers are likely to switch to another platform that can produce content without lagging. If the platform shows ads in between content, do the ads match the quality of the programming? Additionally, during high-demand moments, including new releases or special live events, is the service quality the same, or are the frequent signal or connectivity interruptions? These details are important for streaming companies to consider when developing their brand. Affordability Lastly, it’s important to talk about pricing in relation to streaming. In previous years, there were fewer platforms in the market, which meant companies could dictate their pricing with minimal changes. These days, the diversity of content and variety of platforms to choose from have changed the way companies price their services. Consumers are looking for streaming services that can provide quality content without consuming their budget. They want to enjoy their favorite movies and TV series with minimal monthly costs, and it’s up to streaming platforms to meet that challenge. With more competition and options for viewers to choose from, affordability cannot be overlooked. With these three factors in mind, you can make a more informed decision and choose the platforms that meet your lifestyle and your budget. Additional: The Ultimate Streaming Guide to Watch TV Online Do Music Streaming Platforms Abuse User Data: What You Should Know Want to Learn How to Learn How to Play an Instrument? Here’s What Every Beginner Should Know…v

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

Lease Vs Buy: What’s Better For The USA Based Business

Demystifying the Duty of a Company Secretary in Hong Kong

What Makes A Great Streaming Service?

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