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Sunday, May 17, 2020

How to become a stock broker

How to become a stock broker

How to become a stock broker

 If you are deeply intrested in share market and passionately follow the market trends
 NSE , BSE , and have a knack for handling financial resources , 
Then stock brokering may be the right option in building your career.

Here you will be getting  step by step full
Guide about how to become a stock broker , what are the criteria that a person has to follow to become a stock broker.

What is the role of a stock broker in share market.??

What is the role of stock broker

Stock brokers are a very important part of the share market because all the share that is bought or sold is done by them. All the orders that are placed by the investors and traders go through the stock brokers.

People cannot directly buy or sell stocks from the stock market. For that they need to open a trading account and a demat account with a stock beoker and after that they can buy or sell the shares.

For buying or selling of a Share they place the order to a stock broker and the stock broker completes his buying or selling by placing the order in the stock market. In this way shares are exchanged on the stock exchange and in all the process stock brokers work as an intermediate in the stock market. 

Along with buying and selling of shares stock brokers also provide suggestions about different stocks to the people. They always remain in touch with their clients and constantly updating them about fluctuations about the ups and downs inthe share market.

And for providing trading to people the stock broker charge some amount and that is called brokerage charge. Also thare are some more charges like annual maintenance charges and others.

How to become a stock broker ??

How to become a stock broker

Share market in India is growing steadily and rapidly. Hence it is obvious that those
Who deal in market shares are going to have a rewarding career with vast opportunities for growth.

STEP 1 :-
To become a stock broker first of all you have to get your self registered with the SEBI. On applying for registration with SEBI. SEBI enquires following things about you :-
1. The person willing to register must have an office to work.
2. Required equipments, manpower and facilties.

After completing registration process. SEBI provides a certificate of registration.

STEP 2:-
Now you have to apply on NSE or BSE or both included for membership. For taking membership on stock exchanges you need to pay membership fee and pay security fee. Also you must pass the eligiblity criteria set by the stock exchange.
Eligiblity criteria includes:-
1. Your minimum age should be 21 years.
2. You must have a experience of more than 2 years with a stock broker.
3. Also your networth is checked as well.

STEP 3:-
Now that you have got membership of stock exchanges you need to have one more membership and that is depositery membership.

All the shares that we buy from the stock market for delivery is kept in depositeries in electronic form in your demat account.  And so the stock broker has to take membership of depositeries after paying membership fees and security charges.

STEP 4:-
These were all the registrations and membership that a stock broker has to take for being a stock broker.

Also stock broker has to maintain some important things:-
1. Customer details.
2. Leisures.
And many more compliances.Also a compliance officer is needed that maintains compliances of people.

For being a successful stock broker you also need a trading software and trading app that will help your customers buy and sell shares of the companies they want to buy.

So this was all about what is a stock broker and how to become a stock broker.

If you have any questions or queries regarding this article you may write your doubts in the comment section. You may also read my other blogs in the home section of this website. And you may also get yourselves subscribed if you want to read my upcoming blogs.


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