Major role and responsibilities of a Sub-Broker

A Sub-Broker is not a Trading Member of a Stock Exchange, but he acts on behalf of a trading member as an agent. His main responsibility is to assist the investors in dealing in securities through such Trading Members. The Sub-Brokers need to obtain a Certificate of Registration from SEBI. It is also compulsory for the Trading Members of the Stock Exchange to sign an agreement with the Sub-Broker, laying down the rights and responsibilities of both of them.

In this article, the major roles and responsibilities of a sub-broker would be discussed briefly.

·    Prepare a Natural Database of Clients

The first and the most important responsibility of a sub-broker is to develop a Natural Database of the people whom he wants to make his clients in future. The word Natural Database means the list would include those people whom you already know. They are most likely to help you in your endeavour to be a successful entrepreneur. The natural database would include the family members, friends, relatives, social contacts and colleagues of the Sub-Broker. It is a proven fact that the conversion of the people in the Natural Database into your clients is directly proportional to your business.

·    Cold Calls from your prospect databases

The Sub-Broker needs to make cold calls to your prospective clients on a daily basis. The word cold call means an unsolicited call to the strangers in order to generate business. You may not be successful in all the attempts of converting the prospective people in your list to clients. But you should carry on the process.

·    Meeting with the Clients

The Sub-Broker is expected to conduct a minimum of 3-4 meetings with the clients/prospects. This is because it is impossible to source the clients or bring new business without meeting them. So it can be said that meeting the clients is very important in generating new business. It also helps in keeping the old business floating.

·    Prospecting

Prospecting is very important in trading business. It helps to develop the pipeline of potential customers available. Prospecting involves contacting the leads or the clients and understanding their potential. In trading business, it involves suggesting the clients build a new investment portfolio. You need to introduce the clients the financial products that suit him the best. It is also a part of your duty to fill out the appropriate paperwork required to execute the client’s investment wishes.

·    Stay updated about the new laws and Financial News

The Sub-Broker should keep himself updated about the latest tax laws, market research and financial news to provide their client with the best return. Stockbroking involves a tremendous amount of responsibility as you need to deal with the client’s money. It is obvious that they would expect a good return of their hard-earned money. So, you need to stay focus and suggest those investments which are likely to produce good capital returns.

·    Networking with Fellow Sub-Brokers

Networking opens a door of possibilities in business proposals. It is a part of the job of the Sub-Broker to meet with other Sub-Brokers regularly. The more people you get to know in the Stock-Broking Industry, the higher are your chances to climb up the ladder of success. It is true that one referral can lead to another and with this process ultimately you end up with a large number of clients before even realising it.

Within a few months, you can develop enough clientele to keep your business running effectively.

The above was, in brief, the major roles and responsibility of a Sub-Broker. But you should keep in mind, your roles and responsibility cannot be set by a framework of rules and guidelines. You must go out of your way to draw more clients and ultimately achieve success in Trading Business.