Share trading and investing have become an attractive proposition because they tend to offer good returns. In the past few years, equity appears to have outperformed most other asset classes. Of course, investing in equity involves market risk and investors must be aware of that before taking the plunge.

Ordinary investors cannot buy and sell shares directly. They have to do it through a broker who is a member of the stock exchange. Since the number of brokers is small compared to investors, sub-brokers do a lot of the work of investing. So when investors buy and sell shares, they will probably be doing it through sub-broking agents.

Now, let’s see how to become sub-broker. It’s not all that complicated; you will have to approach a broking firm to become one, and takes very little time. Angel One enjoys a good reputation in the market and should be your first choice. We have over 11,000 sub-broking agents, 1.2 million retail clients, 11,000 trading terminals and 110 branches across the country.

Here’s what you’ll need to become sub-broker.

1. You will need a minimum qualification of 10+2 or HSC. However, some brokers may prefer at least a graduation degree.
2. Excellent working knowledge of the financial markets, including equity, is preferable.
3. You may also need to know a bit about the functioning of the economy and politics because this will affect the way stock markets behave.
4. Another thing to note about how to become sub-broker is excellent communication skills. These are a plus since you will need to able to communicate with your clients effectively about their investment options.
5. If your qualification is less than 10+2, you may have to submit proof of experience certificate. You will need experience of at least two years as employee/ dealer in the capital market.

The dictionary definition of a broker is “a person who buys and sells goods and assets for others”, in return for which he takes a fee or charge, which is called “brokerage”. In India, investors can buy and sell shares or similar investment products through brokerage houses. These entities charge a minimal brokerage fee. These organisations appoint sub-broking agents, who are paid a commission for each transaction they make. This sub-broker commission is what acts as a primary source of income.

Interest in the equity market has been growing among investors. To invest, one needs to go through brokers or sub-brokers authorised by the stock exchanges.

So far, we’ve read about how to become an Authorised Person, now let’s look a typical business plan. The business model is something like this: the broker provides the brand and infrastructure support in exchange for brokerage. The reward for higher brokerage received is in the form of higher commissions.

Another thing to note while knowing how to become sub-broker is the documentation. You will need to provide:

Now that you know how to become sub-broker, here are some of the advantages you enjoy by partnering with Angel One: