Back office co ordination
A broker invest in exchange membership by investing 1-3crore. He distributes all his risk among sub brokers by taking 1-2lac deposits from all of them.
Sub broker takes cheques of deposit from clients to provide margin accordingly. Now if client is taking care of his own funds, then subroker is safe. If sub brokers are safe then broker(member) is safe automatically.
This is a full proof system with proper risk distribution.
There are many departments in a broker’s head office.
It is good to under stand their working & co ordination for a sub broker.
1.Account Opening-(CRC)
Client registration form (CRF) is submitted here with all documents.Forms may be in printed or digital format now a days.
Keep good relation with this department for speedy processing of new accounts and if anything is missing there,they will inform you earliest from their own end.
2. Survillence
This is very important department.It manage the turnover limit for each client.It is taking care of risk management for all subbrokers,which is the most important task here to survive.
3. Accounts (pay in /pay out)
When client has debit, then he has to submit cheque here for PAY IN . if he has credit & want to encash, he can request PAY OUT here.
Some time client gave the cheque but account department did not credit it at that moment so client may miss some big opportunity in such 5minute delay in procedure.
4. Depository operations
Depository deals with NSDL/CDSL. All demat process are done here.This is useful for IPO( primary market) as well.
Many investors are holding very old share certificates and still they did not dematerialized these. They are not familiar with new procedure and busy with their own life.
If any sub broker is supporting in such extra efforts, he will get a potential client, because those 100 share certificates might be turned into 1500shares due to bonus issues.
So that client may be worth 20lacs now and he can give you 2lac cheque for trading at least.
5. Net working & technology department
Networking department handles lease line & ODIN/neat software issues. Mobile trading is also going to become popular. They can help your client to trade in online account over laptops & smart phones.
If you keep talking to them frequently in friendly manner, you will know many technical things which will make you more efficient.
6. Research & advisory-
Every broker is having a special department for in house technical & fundamental analysis team. There may be some very good fellow to interact with.
Sub brokers & clients keep watching and trading on their trading calls but never try to inter act with them properly.
Keep talking to them on suitable time. Ask precise question and learn the science behind their trading tips.
7. Marketing
Marketing department is most important department in bad or good times. So it is given the most weightage, they are responsible for revenue growth. Seminars, events and marketing effort by a team are done here. We can watch them & learn for our marketing plan.
This department can support you officially or unofficially according to company’s business policies.
8. In charge OR Co ordinator-
There is one head or in charge who co ordinates the working of all departments. You should have god relation with him & all other staff.
Sub broker can gift them occasionally and invest in relationship.
Whenever you reach any department for any problem, consider their issues.
Try to understand minute things of all departments working. It is better to have a friendly conversation instead of frustrating waiting time.
If you think that it’s not my job, then you will remain a sub broker only.
If you try to learn everything in the way, you may become branch manager or trading member (main BROKER) some day.
Good sub broker will try to answer all the questions of his clients which may not be directly related to him but this make a client feel “all solution under one roof”
He goes nowhere else and keep bringing new clients to us more than any marketing executive.