Want to be a broker for my friends!

[spiritunit]

Some of my friends asked me to trade for them with their money in the market and pays some commission for that as they do not know how to trade online and as I explained them about this risk factors.

Is it possible to be a broker of myself and charge brokerage from them, what are the rules for that? Is there any license to get? Any deposits?

I do not want to open an office like that, just will do it in home itself being like a broker to the friends only! These may be dump questions, but like to know, thanks.

 

[comm4300]

Some of my friends asked me to trade for them with their money in the market and pays some commission for that as they do not know how to trade online and as I explained them about this risk factors.

Is it possible to be a broker of myself and charge brokerage from them, what are the rules for that? Is there any license to get? Any deposits?

I do not want to open an office like that, just will do it in home itself being like a broker to the friends only! These may be dump questions, but like to know, thanks.

good thought.

I'll suggest 2 of the cheapest brokers so that there is a "win-win" situation for you as well as your friends.

1. RKGlobal - become an online business associate with them by filling up a few forms and paying fees. This model does not require you to have an office or the need for any deposit. As the name suggests, you just refer people to RKGlobal's online trading. Of the Rs.9 per lot that is charged to clients, you get 20% i.e Rs.1.80.
Your friends would find this type of brokerage very cheap, and you'd make money for every trade.

2. Zerodha - you need to have an account yourself first for this model to work. Once you have an account, you can fill in the referral form and list contact details of your friends. If they refer you while opening account, very time "they" trade, you'd get a %age of the executed order.

Best wishes.

 

[spiritunit]

Thanks to both of them, certainly, I will look after the choices.

With reference to the above brokers, RKGlobal and Zerodha (I already have demat account with RKGlobal) ..

1. Would they provide any special logins to manage my friends account to me?
2. How about the money transactions, like will it be go through by my account or can my friends directly transact the amounts?
3. I am in Chennai, so it would be great, if someone guide me a local broker to get more details in person.

 

[TradeRaid]

If you want to trade for your friends, then you'd most definitely need to be a sub-broker. If I'm not mistaken there are a lot of offline clients of RK Global who are charged additional brokerage and the account is maintained by an associate or sub broker. This kind of facility will give you a dealer terminal which is what you'll be needing to trade for others simultaneously. With Zerodha, I don't think they have any sub-broker model and I'm quite certain they will never give a dealer terminal outside of their own office. I've tried.

 

[vssoma]

dear,
try to contact angel, BMA securities, you'll get good and best options to maintain your friends accounts. if you have any doubts pls contact me i'll clear your doubts.

 

[NOMINDTR]

Some of my friends asked me to trade for them with their money in the market and pays some commission for that as they do not know how to trade online and as I explained them about this risk factors.

Is it possible to be a broker of myself and charge brokerage from them, what are the rules for that? Is there any license to get? Any deposits?

I do not want to open an office like that, just will do it in home itself being like a broker to the friends only! These may be dump questions, but like to know, thanks.

Good idea though; a broker is not suppose to trade on behalf of clients as per SEBI and believe me, things would turn hot when situation go against you. And brokerage revenue won't be as big as you would imagine, at the cost of friendship. Please take care

 

[bharatk8]

Hi

I want to trade for friends/relatives and want to take brokerage instead of share in profit.

Pl. give name of broker who suits my needs best.