subject: Stock Broking Company: Essential Instructions to Start Your Own [print this page] Are you one of those countless individuals harbouring the dream of starting your own stock broking company? In this form of business, you have to generally charge fees or certain amounts of commission from investors for buying or selling their stock investments. There are specific instructions that you need to abide by to taste success in this type of business.
Experience matters most in a stock broking business. So, the foremost activity you can undertake is to garner vital experience by working in the industry. This way, you can get yourself acquainted with the overall functioning of the system. There is every possibility of gaining or losing substantial money by brokers every day, leading to a significant effect on their clients or investors. Hence, you should give yourself enough time to learn various aspects of broking. When you have wealth of experience in this business, you can make the most of it to start and successfully manage your own stock broking company in the days to come. Working for a different broker is a good way to acquire experience. By doing so, you can also meet and interact more with a large number of prospective investors.
To commence your own stock broking company, you must be a certified broker first. The whole testing process is divided into seven segments and you'll have to get through each of these segments with success. If you're not yet ready to appear for the test, you can hinge upon an already certified broker to commence your company and he will become your business partner after that. With the passage of time, you can continue to be a broker or become a dealer. As a broker, you will only buy and sell securities on behalf of your clients, But, when you will be a dealer, you can own securities as well as sell them. The majority of the present-day broking companies act as both brokers and dealers.
Your stock broking company must be registered so that the government as well as stock exchanges should recognize it properly. In addition, get your company registered in the Securities and Exchange Board of India (SEBI). During the registration process, you will have to go through lots of paperwork. There is also the need to expend money towards several processing fees. As a certified broker, you can work independently from home or set up an office if you have a business partner and a number of employees. It depends upon you whether you want to buy or take the office on rent.
Stock Broking Company: Essential Instructions to Start Your Own
