How to become a sub-broker?

Published on: 25 August 2018 Last Updated on: 08 August 2019

To become a reputed and successful entrepreneur, it takes hard work. In India, the opportunities for launching new businesses are umpteen, but the competition is fierce. There is no magic mantra that can help one company find success within record time. It requires dedication, perseverance, and knowledge. Sub-brokers are entrepreneurs with immense potential for making a profit. They are not trading members of stock exchanges, but they can act on the behalf of one. They can also assist business owners and new investors to buy or sell securities through registered trade members.

The opportunities of a sub-broker business are plenty. If you have a fair idea of the share market and its products, it is going to be a rewarding business for you. In fact, it is a rewarding profession for novices as well. Anyone with the aptitude for share trading and the will to learn about the share market should be able to master the necessary skills of a sub-broker.

What are the necessary qualifications of a sub-broker?

The qualifying criteria remain more or less constant across the country for sub-brokers. Here’s a list of the edibility requirement for joining the elites –

The person should have a graduate degree. Any subject should do, but the aptitude for share trading is a must. The applicant should have passed their 10+2 examinations at the least.
They should know about the financial markets of the country. They should either have the qualification that gives them the knowledge of it or previous experience that gives them the insight of the share markets. He or she should also be able to manage basic financial transactions.

They should have the latest information on the economic, socioeconomic, political and environmental scenario in the country. That is because every change in the scenario impacts the share market.

They should know how to operate computers. The applicant must also be able to learn specific trading and monitoring software necessary for the process.
Nothing can replace good communication skill for sub-brokers. They should be able to convince and comfort their clients during and after investment. It is a highly competitive niche and reliable skills of communication can give you an edge over your competitors.
They should be good at management. You must remember that every business is about great management. Nothing can take the place of management when it boils down to man, market, and money.

The aspiring sub-broker should clear the basic NISM modules on mutual funds, equities, F&O, and commodities. These regulations ensure that all sub-broking work should follow the completion of these modules.

How to find a stockbroker to work with?

Next, it is time for the sub-broker to find a broker as a partner. It is the most crucial step towards setting up the sub-broking business and you need to keep a few things in mind before you go down this path –

i. Pick a good broker

Finding a good stockbroker does not mean looking for one with a lucrative office or higher profit share. The broker you should look for should be reputed in the market, should be trustworthy and active. Make a list of the priority values you want to see in your stockbroker. Consult with your friends, family and fellow sub-brokers during the selection process. Check the broker’s profile before you go into business with him or her.

ii. You should be ready for the full-time commitment

Being a sub-broker is not a part-time hobby. It is a business and a full-time commitment. You will almost never be off the clock. Even when you will be away from your desk, you will be receiving updates on your mobile phones. Staying connected 24/7/365 will ensure that you will always be ready when a big business opportunity knocks on your door.

iii. You need to be more than the average sub-broker

Clients expect a lot more than the usual assistance and dealing. It is a competitive market, and you need to cater to your clients’ needs for market advice, investment aide, and product selection. Every client now deals in multiple products like mutual funds, currency, equities, and securities. It has become the responsibility of the sub-broker to advise them on the selection of products to avail the best investment opportunity at the time.

What are the finishing touches of becoming a fine sub-broker?

Get your own client database

Becoming a good sub-broker takes a lot of practice and time. It is important to have databases of people, who are likely to become your clients soon. It is possibly the only profession where cold calls are still valuable and useful. The first stage of the database may consist of your family, friends, ex-colleagues and social media contacts only, but you need to start working on that data. You will have to go through multiple rounds of meetings with your clients, explain the prospects, your business USP and their chances of making profits in the long run.

Build your network

Finding a reliable sub-broker is a challenge for many regular share market clients. You need to fill that gap and become the sub-broker they can trust. So, do not push sales from the first round of calling and meeting. Ask for references once you establish a relationship with the client. Attend networking meetings. They might be a tad bit cliché, but they are always effective in getting new leads for the new sub-broker. Yes, you should expect to find them the moment you step in. It will take some time for others to warm up to you and for you to notice the new opportunities in the market.

Keep yourself updated

Lastly, no great sub-broker can remain great without regular brush-up of their market knowledge. So, go ahead, install some of the best market update applications, follow rewarding share trading blogs and follow the news on the changes in the financial policies of the country that can affect the market. To offer your clients a little more than the next sub-broker is offering, stay updated with the international market news as well. The ups and downs of the global market always influence the prices in the Indian share market.

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What Investors Should Know about Investment in Gold and Silver Assets

The stock market is one of the investment platforms that readily come to mind when (especially) new investors think about investing. The truth is that this investment platform promises a lot. This is the reason many people take this investment route. Be that as it may, you need to know that this investment platform has its few downsides. However, they are few enough to have caused many people financial wrecks in the past. The point is not to discourage you from investing in the stock market. Trading commodities can be a great decision if you are looking to diversify your portfolio. Historically, precious metals like gold and silver have been tried-and-tested safe investment options as far as traders are concerned. You can get in touch with a leading gold trading broker to evaluate your options and then proceed accordingly by trading these commodities. However, it is about opening your eyes to some of its dark sides and making sure you see the need to diversify your investments. This way you can make the most of many investment platforms or make sure you are not completely at a loss if the stock market has problems. For those that need to better understand the possibility of the stock market crashing, you can visit: https://en.wikipedia.org/ You would discover that regardless of where they are situated, no stock market is completely immune from a crash. Investors in places like the United States, the United Kingdom, China, Brazil, EU Nations, Dubai, Japan, South Korea, and many other places have had this experience. It is for this reason we all need to equally consider investing in other profitable assets as well. On this note, this article will shed some light on gold and silver investment. The ways this can play out and a few other things will be explained here. The information here is very important and so you are advised to keep reading. You should also pay rapt attention as you do so. Gold or Silver – Which Should You Invest in? For the record, both precious metals are not the only options that can be considered by those hoping to make the most of the precious metal market. However, both are unarguably the most common options for precious metal investors. Other than this, some of the details discussed concerning both precious metal assets are equally applicable to others. Having established this, the million-dollar question on many people’s minds is “should I invest in gold or silver?” There are many things you need to consider to make the proper decision in this regard. One of them is something known as the gold-silver ratio. This is about using the value difference between both precious metal assets to make informed decisions as an investor. Fortunately, there is always a clear figure of this ratio to help people make the right choice. You need to make your decisions based on this ratio amongst other things. This is so that: You choose precious metals based on their prospects You get your assets at a market valuation that is fair Your assets will not be undervalued when it is time to liquidate the assets These are some of the basic reasons you should take this ratio seriously as there are a few other reasons. Against this backdrop, you should also make sure you are working with real-time information. This is to be certain that your investment decisions are well informed. If you would like to know more about the gold-silver ratio (especially how it is calculated), you can read this article. Investing in Gold and Silver Some similarities come with investment in gold and/or silver. One of them is that they share the same investment methods for the most part. So, this is valuable information for those planning to invest in silver, gold, both precious metals, and even a few other precious metals. Having established this, some of the methods that can be considered include: 1. Bullion Purchase There are a few precious metal forms that would pass as bullion. However, the underlying factor here is that the precious metals are gotten, sold, and valued based on their weight. This is unlike what is obtainable with collectibles and special precious metal coins. Speaking of bullion, they would either be offered as bullion coins or bars. The latter usually weighs one ounce and its valuation is based on this. On the other hand, the former weighs a lot more. This is no less than 400 ounces. To invest in gold and silver using this method, you have to work with a precious metal exchange company. Many service providers are in this business. Some of the very common ones include Money Metals, JM Bullion, Vaulted, and a host of others. It is very important that your chosen precious metal exchange company ticks all the right boxes. This is in terms of credibility, impressive track record, and a long list of other important things. You are advised to get a full review from a credible review platform(s) to make the right choice. 2. Gold IRA The Internal Revenue Service is heavily involved in formulating tax laws and seeing to it that they are implemented in this country. This is especially at the federal level. You should also know that this body is also actively involved in regulating the IRA scheme. The IRA scheme offers a lot of tax benefits to account holders and the good news is that there is an IRA plan that allows people to invest in precious metals. The truth is that there are only 4 precious metal assets that the system allows account holders to invest in. These are gold, silver, platinum, and palladium. You are advised to understand the rules set by the IRS as regards investing in precious metal assets. These are especially rules that center on withdrawal of precious metal assets, storage, eligible forms of precious metals, approved purchase techniques, and so on. 3. ETFs This is an investment option that is quite popular. This is especially as it concerns investment in the stock market. The good news is that the Exchange Traded Fund (ETF) system is not restricted to the stock market. You can also make the most of the precious metal market using this system. Other than the bullion purchase method discussed above, this one would not require handling the assets physically. Frankly, this is one of the advantages of this silver and gold investment method. For more on this subject, you can visit: https://www.businesstoday.in/commodities/story Conclusion We have discussed a few things you need to know as someone hoping or planning to invest in silver or gold. You should also know that some of the information here will help you invest in other precious metal assets properly. So, you are advised to make the most of these details going forward. Read Also: 5 Reasons Why Bitcoins Are Considered Reliable Investments 5 New Assets To Diversify Your Investments In 2021 Top 5 Investment Decisions You Need To Make In Your Thirties

About Professional Liability Insurance

Professional liability insurance is also known as errors and omissions (E&O) insurance in some professions. It is a type of coverage that is designed to protect professionals from financial losses. They may occur from claims of negligence, errors, omissions, or malpractice in the course of their professional duties. Sometimes, it is also referred to as malpractice insurance. This insurance is particularly important for individuals or businesses that provide services and other professionals. Here’s a discussion of the cost-benefit associated with professional liability insurance. However, you should seek the advice of professional liability insurance experts such as DeshCap who are independent of brokers and lobbyists. What Are The Most Common Reasons For Business Losses? When a business organization faces losses, it becomes a burden to carry on in the long run. However, one needs to be financially charged to combat the wave of financial exigency. Here, we discuss some of the common reasons why busiensses suffer losses. High Competition In The Market High market competition stops an individual from doing well in the financial market. If you face high competition, it will be difficult for you to win the customers' hearts. Ultimately, it will impact the company's financial margins. Hence, you need to work consistently on your finances so that you emerge strongly and study the preferences of the customers well so that it opens the lock gate of stagnancy. Inadequate Business Planning During the pandemic, millions of businesses were constrained to close. The companies that did not have a plan B were forced to embrace their fate. Lack of demand and sale of products created losses in the business. Therefore, it's quite clear how business losses affect the company's entire framework. The company must invest in hiring people who have leadership qualities and who can contribute immensely to the strategic elements. Fluctuating Demand In The Market The market is always a journey of highs and lows. Many events can be attributed to the fluctuating demand in the market. But the most pronounced among the factors is the changing demands and shifting consumer preferences. Ultimately, it leads to excess inventory and losses. High Operating Costs High operating costs are a bitter truth for all companies operating in a competitive market. Mainly, small and medium-sized businesses become its prey. Breaking it down, the rising cost of electricity, rent, utilities, and labor eat away the competition. Ultimately, it leads to losses. This impacts the productivity of the company. Regulatory Challenges The regulatory environment is always changing. Keeping the synchronization is one of the huge challenges. It indeed turns out to be a costly affair. Navigating the transformations can indeed make businesses low in competition. Ultimately it stops the growth opportunities of the organization. Technological Obsolescence When there is a shift in technology, it is a huge challenge for companies, mainly SMEs, to compete in the financial markets. The bigger companies take advantage of the shift in technology because they have the financial support to fight the developments. Hence, you must be well-equipped to understand your company's technological glitches and try to modify them according to your needs. Therefore, businesses must be well aware of them while working continuously in the competitive market. Benefits of Insurance for Professional Liability Risk: There are a few benefits of professional liability insurance. Let us discuss them in this section. Legal Protection: One of the primary benefits of professional liability insurance is that it provides legal protection. In the event of a legal claim or lawsuit, the insurance will cover the cost of court fees, attorney, and other expenses. This can be a significant financial burden for professionals and businesses. Financial Coverage: A professional may be found liable for a mistake or negligence in their operations. This very insurance covers the costs of damages awarded to the plaintiff. This can include compensation for financial losses, legal fees, and other associated costs. Without insurance, these expenses could be financially devastating. Reputation Protection: This insurance policy often includes coverage for reputation management and public relations services. These services can help protect the professional’s reputation. They help them precisely in the event of a claim and mitigate damage to their brand or business. Peace of Mind: Knowing that you have professional liability insurance in place can provide peace of mind. Moreover, insurance can reduce stress and allow professionals to focus on their work without the constant fear of litigation. Client Trust: Having insurance like this can enhance your credibility with clients. It also shows that you take your work seriously and are prepared to address any potential mistakes or issues that may arise. This can be a competitive advantage in many industries. Cost-Benefit Of Professional Liability Insurance: Let us discuss some of the cost benefits associated with this insurance. Cost Savings: The cost of professional liability insurance premiums is typically far less than the potential legal costs and damages. In this sense, protecting your financial assets and livelihood is a cost-effective way. Legal Defense: Without professional liability insurance, the cost of legal defense can be prohibitively expensive. Professionals can access legal defense services that would otherwise be out of reach by paying relatively modest premiums. Risk Mitigation: Professional liability insurance helps mitigate financial risk, allowing professionals to focus on their work rather than worrying about the possibility of a costly lawsuit. Legal Compliance: In some professions, owning professional liability insurance is no less than a legal or regulatory requirement. Failing to carry this insurance can result in fines or the loss of professional licenses. Customizable Coverage: Many policies are customizable to fit a profession or industry's specific needs and risks, ensuring that professionals get the coverage they need without paying for unnecessary protection. Conclusion In conclusion, the cost-benefit analysis of professional liability insurance indicates that the benefits of protection against legal claims and financial losses far outweigh the relatively modest premiums paid for the coverage. It is a wise investment for professionals who want to safeguard their financial well-being and maintain their reputation in their respective fields. Read Also: Car Accident Liability Seven Benefits Of Hiring A Professional Bookkeeper After A Construction Accident: Worker’s Rights, Compensation, And Legal Recourse

8 Factors That Play a Role in How Long-Term Disability Premium Is Calculated

Even if you know how beneficial long-term disability insurance can be, you may not know what to expect as far as rates are concerned. It’s not easy to just throw out a few figures; rates vary from one person to another, and they depend on various factors. Below, we’ll explain some of these factors in greater detail. 1. Your Age As we age, we’re more likely to suffer a long-term disability. Because of that unfortunate fact, insurance rates increase with age. Keep in mind that your cost for long-term disability insurance will never be as low as it is today, and consider purchasing a policy as soon as possible. 2. Your Income In the long-term disability insurance niche, the terminology is a bit misleading; it should really be known as ‘income insurance’. Because it is designed to protect or replace your income, it pays more if you make more. Therefore, rates are higher for those with elevated incomes. In most cases, long-term coverage costs from one to three per cent of your gross yearly income. 3. Whether You Smoke Those who smoke are more likely to become disabled in the future. Not only do they pay more for health and life insurance, but they also pay more for disability coverage as well. If you smoke, consider quitting; if you don’t smoke, don’t start. 4. Your Job As a worker, your long-term disability insurance rate is determined based on your job’s risks or physical demands. For instance, if you’re an office worker, you may pay less than a manual labourer would pay. 5. The Definition of a ‘Disability’ Every policy has a unique definition of the term ‘disability’. Most question whether you can do your previous job, or whether you’re unable to do any work at all. The looser the definition, the more you’ll pay for coverage. A policy covering ‘own occupation’ disabilities will pay out if you can’t do the same work, even if you could hold a different type of job. However, a policy covering the ‘loss of earnings’ will bridge the gap between your pre- and post-disability income. Finally, an ‘any occupation’ policy will only pay out if you cannot perform any type of work. By considering this from Darras Law, you will get the help needed to encourage your insurer to fulfil its obligations. 6. The Potential Payout While your policy’s cost will, of course, depend on your income, not all long-term disability policies pay 100% of what you make. Some pay just a fraction of that amount; the closer the policy comes to a 100% payout, the higher the rate you’ll pay. 7. Elimination Period Length A policy’s elimination period is sometimes referred to as a waiting period. It’s the time that has to pass between the onset of your disability and when the policy starts paying out. A policy may come with a 30-, 60-, or 90-day elimination period, and those with shorter periods will cost more. 8. The Benefit Period A disability insurance policy’s benefit period is the length of time it will pay out following the waiting period. Two- and five-year policies are common, as are lifetime policies and those that pay out until retirement age. The longer the benefit period, the more the policy will cost. In Conclusion Now that you’ve gained an understanding of the factors affecting your long-term disability insurance rates, your next step should be to determine how much coverage you need. While an insurance agent can help you find a new policy, a local disability attorney will help you get the benefits to which you’re already entitled. Read Also: 4 Expert Tips For Finding The Cheapest Insurance For You Your Simple Guide To GAP Insurance Tips For Breaking Into Finance And Banking

How to become a sub-broker?