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ASSISTANTS TO STOCK BROKERS
30.08.2018 10:57

Since a stock broker is the most important player in the stock market, his job is quite tough, in fact, tough is an understatement for his job. A stock broker needs to have the required knowledge and skill for his job, moreover he needs to have a brilliant forecast ability as well as the promptness to execute orders for his clients. The responsibility and work load on the shoulders of a stock broker sometimes becomes a lot. In such cases he needs the help of someone, basically an assistant.

The assistants to a stock broker are:

1. SUB-BROKERS: Also known as Remisiers, a Sub-Broker acts as an agent of a stock broker, wherein he purchases and sells shares and securities on behalf of his clients only through the help of his employer stock broker. Since he is not a member of a stock exchange, he cannot deal in shares and securities directly, thus requiring the need to assist a stock broker who's a member of the stock exchange. His remuneration is in the form of commission, which is paid out of the commission received by the stock broker for whom he is assisting. Due to this, sub-brokers are also known as 'half commission men'. The total commission received by a sub broker is limited to only 40% of the commission received on the business transacted by both the broker and the sub broker.

2. AUTHORISED CLERKS: A stock broker basically appoints a clerk to assist him in the trade of shares and securities. Once appointed, the clerk becomes an authorised clerk. He is also known as a Floor Broker since the stock broker cannot be present on the trading floor always, hence the services of a clerk is needed on the trading floor, thus giving the name Floor Broker. In fact, an authorised clerk or floor broker acts on behalf of the stock broker in his absence on the trading floor. Authorised clerks are even known as 'member assistants'. However, there is a limitation to the number of authorised clerks a stock broker can employ. Authorised clerks are given the power of attorney which helps them act and sign on behalf of their employer stock broker. However, they can only act on behalf of the stock broker, they cannot make any transaction in their own names. Authorised clerks are paid by their employer in the form of a number of fees such as entrance fee, subscription fee, etc.

Both the sub broker and authorised clerk work towards assisting the stock broker, their services are of immense help to the stock broker, they not just assist him but also help in reducing the work load as well. In return, they do get their deserved remuneration. A stock broker might be the biggest player in the stock market but without the help of either a sub broker or authorised clerk, even their work load gets bigger. In short, the assistants to a stock broker play quite an important role in trading.

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