Knowing How to Become Stock Broker in India Can Help Investors

Careful investments in the stock market can bring in steady and large returns. Many young professionals have chosen the profession of working the stock markets which has provided a steady income over the years. Individuals have opened up their own stock broking firms after acquiring a high degree of expertise and experience in the stock market operations. The firms have helped them to do their business more effectively and efficiently. Before you can take advantage of earning profits from the stock market operations, you have to know how to become a stock broker in India.

Stock broker application

You can become a stock broker by applying for registration to the authorities of the stock market. You can be a stock broker and start your own firm if you have the financial strength. You can also be a sub-broker who is allowed to trade on behalf of a registered stock broker. Whether you want to be a registered stock broker or a sub–broker, you have to follow the guidelines laid down by SEBI. You have to apply to the authorities giving your name, PAN number, address and other details. You have to mention the sections you want to trade such as equities, derivatives, currencies and so on.

Getting a registration

SEBI will give you a Certificate Of Registration or COR with which you can start trading. You will not be allowed to trade on the stock exchange without this certificate. You have to pay membership fees to the stock exchange after you are registered with SEBI as a legal stock broker or sub-broker. You can start trading on behalf of your clients after getting the membership number. Some of the stock broking firms offer partnerships in the companies to people who want to trade on the stock exchange. There a few of them who ask for special certificates such as the one awarded by the "National Institute of Securities Market" or NISM when recruiting individuals.

Joining a firm

If you want to learn the ropes by joining a firm of stock brokers, you can have a lot of advantages which you will not get as an individual stock broker or sub-broker or a stock broking franchise. You will be able to provide the existing financial services and products of the firm instead of building you own repertoire. You will have the experience of the institution to back you up. You will get access to all the latest technologies that are used by the firm in its dealings. You will be exposed to various revenue sharing models and the true spirit of partnership enterprises. The firm will support you in all types of business development.

Advantages of brokers

Investing in shares and other instruments can bring in more returns when you have detailed information on the latest market trends. To achieve this goal you have to become a registered stock broker or a sub-broker. You have to know how to become a stock broker in India to get registered and start trading on the stock exchange. By getting a membership, you can open your own firm if you have the financial capability, or you can trade on behalf of other investors. For more information visit us at: http://plindia.com/overview.aspx