Many people want to start a small business. Like any other business, share broking business is also a good opportunity to make money and to be up to date. If you want to start a franchisee of a share broking company, you have to look the following matters carefully.

Firstly you want to identify a good share broker in your locality. If you are satisfied with their product (trading terminal) and service, you can choose them. You have to pay an average of $3,000 USD (1.25 lakh rupees) to them as deposit and SEBI registration fees. And you should have a NCFM certificate holder, to take the terminal. SEBI will issue the terminal on the behalf of the NCFM certificate holder. After that, you are eligible to participate in the share trading business.

Share with the brokerage in the ratio of 60:40 - Sixty for you and forty for the company. If you have more business then you can negotiate with them. You should have at least one computer, a scanner, and a printer in your office. And you should exhibit the certificates in the office that are issued by the SEBI. Then you should keep registers like client in registers, pay out registers, cash books, customer records, and client out registers and so on. And then you can be a dealer or you can appoint a dealer who has an NCFM certificate.

Next, you have to do your marketing. You can use cold calls or set up some deal with the executives of the different banks, insurance agents, and mutual fund agents and so on. But my suggestion is that you should start with your friends and relatives. Before you begin marketing, you should understand the market conditions and the risks involved - don’t state any guaranteed return. You can say estimated minimum twenty percentage return per annum for your clients, but don’t give any agreed document. Initially, you should go for deliveries which means buy today and sell after the next day onwards. This does not mean that the client should sell the next day. In fact, the client can hold their securities for any long term period, if it was bought using only his money and not using the company’s margin. After that, you should learn about the pivot point levels of the shares which will help you to do intraday trades (which means buy today and sell today). For these types of trades the client can use the margin. Then slowly study the derivatives.