Please help in setting up sub brokerage

Dear Sir

I want to be On-line sub-broker with low investment, what infrastructure I need? How much capital I need? What will be monthly expenses to run the brokerage? Do I have to appoint terminal operators for trading?

I want to intraday trading and delivery trading for my clients, I can bring some clients after starting the brokerage.

How much I can earn daily in brokerage.
How to manage the portfolio of my clients.
How to get new clients to join by company.
Can I earn 15,000 rupees in brokerage alone?
Do I also need to invest a certain amount in intraday and delivery for trading?

Please advice how sub broker operates

Do I have to trading daily with my client’s money?
How much I will get if I earn in stocks trading from clients.
How much I have to pay to my clients if I lose.

Or shall I tell my clients to day their own trading from my premises.
if a clients joins my company shall I buy and sell stocks on their advice, or shall I advise them to buy and sell particular stocks.

Is it possible I convince my client to invest some amount of money and take monthly some returns is this will work?

Also I plan to do intraday trading and delivery trading with some of money.

How much can I earn in delivery trading monthly.

I am planning some strategy for intraday please read and advice if I am correct.

Please advice what will be my losses if I lose 0.5% per share in single trade and how much brokerage and taxes on margin money for intraday I have to pay to my broker, I am taking margin money of 10 times of my base capital and also tell me how much brokerage I have to pay if I take delivery for the above shares. I plan to trade in a single company stock for example suzlon I want to do intraday trading of the suzlon share on daily basis and sell it for 0.5% margin on each share in case the suzlon shares can't reach my selling target I would take delivery of the same shares and sell it tomorrow. If I trade for a month in intraday in suzlon shares is it possible that I reach my target in a single trade. Please Advice. Is it good to do one trade in a single company stock for a month will it yield results or not, please advice?

And what will be my stop loss if I am selling a share for a margin of 0.5%

Awaiting your earliest reply

Please comment and guide me it will be a great help.

Thanks & Regards
Mohammed Faiz ahmed
E-mail:[email protected]

Hi Faizahmed.

so many questions at one go?

First and and foremost the mandatory things.

1) NCFM cerificate in Capital Market (Dealers) Module ( if interested only in cash segment) & Derivatives Market (Dealers) Module ( for F&O segment).for details see NSEindia.com.

This should be in your name or your employee.

2) A broker. ( search the forum for a suitable broker).

3) SEBI & NSE or BSE registration ( your broker will guide you)

Total cost would be around 25,000 + deposit require by broker which may vary from 50,000 to 2 lakhs.

you have to negotiate the brokerage and commission structure with your broker.
brokerage may vary from .01% to .03% ( for intra day & F&O) and .1% to .3 % ( for delivery).

The commission may be a fixed %age or the diff.between the brokerage your client is paying and brokerage your broker has agreed to charge.

your income is dependent on the business you generate.

In theory, you are an agent between your broker and the client.

so, the client has to get himself registered with the broker and other agencies
for which you have to assist him.

there will not be any financial dealings between you and the client except for collecting/refunding deposits or delivery instructions on behalf of your broker.

he will place orders through you either over phone or in person, and you have to execute the orders using his code only.

If, you do business strictly as per this, then you are not responsible for any losses or profits of the client.

however, if you try to manage their portfolios or do certain illegal things, then you will be responsible for any losses they incur.

spend some time in the forum and you will be able to understand the things.

cheers.

Thank you very much

I thank you for your excellent reply

i will keep you updated as i proceed