How to Become a Stockbroker
Stock brokerage is a brokerage that is taken on every stock trading transaction. It does not matter what kind of transaction you are doing it is taken on both in buying also so on selling. It is possible
that if you are going to buy house you just find seller you may not have to pay brokerage, but not same in the case of the stock market. The goverment of India does not allow to buy or sell share
directly from the buyer or seller. Goverment has hired some brokers these brokers are turn into companies now. Such as share khan, religare, indiainfoline, motilal oswal, and many more their charges may be different they take. Brokerage charges are according to your trading if you are doing intraday trading charges would be less than holding they provide limit also in simple word (credit).
Suppose if you have only 10000 in your demat account and you want to trade upto 50000 so you can use your limit, if your broker provides you 5 times limit. It depends on your broker that how many times of limit he provides. And these brokers get brokerage on every transaction every broker provides its own software for trading to its clients.
Firstly if someone wants to trade in stock market will have to get a demat account opened without that one cannnot trade. Trading is done not only in stock market but in commodity , forex market, and NCDEX market also and charges are taken in every segment of the market. As commodity trading done in lots brokerage charges can be per lots like 200 rs per lots 150 per lot this is the amount which you have to pay on buying and selling of every lot. Although cut throat competition is going on so broker companies are taking minimum brokerage charges. Along with brokerage charges you will have to pay secuity transaction tax also. Broker hire sub brokers like distributer hire retailer .
If you are going to trade in commodity market there is no need to bring whole amount of your trade you will require to pay only margin amount. Here 5 to 7 % margin will be charged in the case of all commodity and in commodity segment trading wil be done on lots. Different commodites have a different lots sizes like gold has a 1000 and silver has 5000 crude oil 1250, brokers play a mediator role in stock market. Brokers provide stock market tips also to its clients. Tips can be HNI calls stock tips, etc. Sometimes the cost of opening the account is based on the software provided by brokers
A Service Tax of 10.2% is levied on the brokerage while a Securities Transaction Tax of 0.1% is levied on the total trade value. And become broker is not so easy. The requirements of being stock brokers are person will have to take the sebi exam a and after passing the examination will have to deposit security money which is refundable at the time of leaving brokership