Benefits of Becoming an Authorised Person
Recently, the stock market has seen both bulls and bears fight vigorously, and the movements the industry saw enticed many people and attracted many people wanting to build their careers in the stock market. Stockbrokers appoint authorised persons to help the clients by providing a platform to trade and support them.
Who is an Authorised Person?
An authorized person is a professional registered with SEBI appointed by stock brokers and trading businesses to offer customers access to stock exchange trading platforms and help them through their investment journey. Since you can’t invest in the market on your own and need to broker either electronically or humans, an authorized person is classified as an agent of the stockbroker who helps you do that.
An authorized person has more authority. That’s why many sub-brokers become authorized persons, as they enjoy more commission and authority.
Benefits Enjoyed by Authorised Person
SEBI introduced the model of authorized person in 2009 to help stockbrokers provide ease of access to investing in stock exchanges with the help of a qualified person. An authorized person enjoys lots of benefits, such as:
Low Investment
The cost of entry to become an Authorised Person is meagre compared to the revenue one can generate being an Authorised Person. The initial investment can be as low as Rs 1,00,000 and can go up to Rs 10,00,000 depending on which type of securities you will be dealing with.
High Earning
A stockbroker provides an authorised person with a different revenue-sharing method. The most prominent one is the commission on brokerage fees. The commission can range between 60% and 90% depending on the trading volume generated by the Authorised Person. The revenue earned is entirely derived from the brokerage, not the customer.
Ease of Setup
Instead of investing in your resources, a stockbroker provides the Authorised Person with all the resources they would need, such as research, advisory, and help desks. This makes it easier to get your footing in the market.
Authorized persons get full access to trading platforms such as web or mobile applications, and the stockbroker also shares tools with them.
More Options for Trading
An Authorized person can trade in equity, currency, futures and options, and even commodities if the stockbroker has a domain in that as well. This puts them at a huge advantage over a sub-broker mainly confined to equity and mutual funds. Hence, they can provide their clients with more options for trading and investing.
Marketing and Support
A stockbroker gives full support to the Authorised Person for marketing and support in many manners. The broker takes care of marketing and advertising online and offline because they are the ones profiting at last, so a stock broker ensures that you succeed.
The stock market will see a huge boom in the upcoming year, with new technology on the rise. Due to its ease of access, more and more people are starting to invest in it. There is no better place to be in the stock market than an authorized person.
