June 16, 2024
Sub broker trade

Can a Sub broker trade for himself?

Can a Sub broker trade for himself? Well, honestly we get that question a lot, especially from people who are looking to foray into sub-brokers business themselves. Before we answer that, it needs to be known that – In any stock exchange, a stockbroker is a registered member whose main role is to perform stock market transactions on the client’s behalf, who could be a trader or an investor.

Sub-broker Trade for Self

But, in order to start a stockbroking firm, you need to have sufficient investment capacity as it needs obtaining a license which has a high cost. The stockbrokers have a membership ID which they share with their clients for trading purposes.

Also Read: Sub Broker Fees

In case you do not have a high investment capacity, an alternative option which you can adopt is to opt for the sub-broker trade. In general, the sub-brokers trade for the members of the stock exchange is possible only after acquiring the registration from the Security and Exchange Board Of India(SEBI).

Now, in order to execute the trade on the portals of the stock exchange, the dealers are hired by sub-brokers.  This dealer is responsible for entering all the trades on the system on the broker’s or sub broker’s behalf.

Also Read: Sub Broker Without Deposit

In any case, there are certain eligibility criteria that need to be fulfilled such as getting a Certificate of Registration from SEBI from the stockbrokers or sub-brokers. In the sub-broker trade, you have to pay a certain fee for membership to the stock exchange. It is after getting the membership number when a person can start the sub-broker trade on behalf of his clients.

Besides trading for the clients, the sub-broker can trade for himself also by using the individual client account.

In simpler words, the answer to the question – Can a Sub broker trade for himself is YES!

Read How To Become a Sub Broker in RK Global, if you want a business opportunity with the discount broker.

Sub-broker Trade Benefits:

Here are the advantages which a sub-broker can  enjoy by trading for himself:

  1. He can be in an advantageous position as the stockbroking house will provide him with research reports on a regular basis, which he can use for getting better profitability while trading for himself.
  2. Sub-broker can use the advisory services, stock recommendations and tips to his advantage.
  3. Besides earning a certain percentage of revenue from that earned by the clients, he can also earn from his own trading and investments.
  4. He can stay updated through the training and seminars provided by in the sub-broker trade from the stockbroking firm regarding the latest tools and techniques. This will make him efficient enough in his own trading, besides enhancing efficiency in the business operations.
  5. Since the stockbroking house provides complete support for marketing by providing him with flex, banners, pamphlets, TV advertisements, radio advertisements, mouth to mouth publicity, etc, so the sub-broker need not put a lot of effort while acquiring clients, as this can be done easily. Thus he won’t feel that there is a lack of time time to trade for himself.
  6. With the wide range of services and products offered in the sub-broker trade such as equity, derivatives, commodity, currency, IPO, bonds, etc. the sub-broker can make an investment in diverse products. Thus this prevents any chances of him looking out for other stockbroking firms for the same purposes.

If you’re interested in sub brokership with a full-service stockbroker, read : 

Sub-broker Trade Concerns:

The only problem when a sub-broker starts trading for himself is if he focuses solely on his own profitability and gives less attention towards serving the clients and addressing their requirements. This kind of attitude is going to have a worse impact on the stockbroking firm and his business venture would soon fail.

So, being a sub-broker, one must make sure to accomplish his functions towards the stockbroking firm first, after which he can devote some time towards trading for himself.

Are you looking to become a sub-broker or a stockbroking business partner in any mode?

Let us assist you in taking the next steps forward. Just fill in some basic details to get started:



Learn More

If you wish to learn more about sub-broking businesses, here are a few reference tutorials for you:


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