The advent and rapid progress of the stock market have generated a multitude of options for investors to grow their investments. Furthermore, the market has developed to evolve and build an industry that facilitates this demand, resulting in a wide range of services being given in the financial industry. Technological improvements have enabled many stock-market operations, ranging from stock exchanges to brokers, to move to the online space. Stock Brokers advanced in their systems as a result of technology’s interference, and everything began to happen through the Stock Broker’s portal. The Stock Exchange began issuing licenses to brokers to use their site and make orders on their behalf instantly on the portal.
That is when the volume of calls or traders visiting the broker’s office grew because the broker would put the order on the portal for them. Processes have now been streamlined even more. Brokers have now moved on to the use of trading platforms or terminals to which traders have direct access, allowing them to place orders on their own. Aiding them in their operations are a class of individual-entrepreneurs known as authorised persons. In this article, we learn about the concept of an authorised person and understand the functioning of trading platforms and terminals that enable modern stock market trading operations.
Who is an Authorised Person?
An authorised person serves in the same capacity as a broker, acting as a go-between for two parties. Just as a stockbroker is the intermediary between the stock exchange and investors, an authorised person is the intermediary between the stockbroker and the investor. an authorised person’s job is to act as a middleman between the broker and the client. Because an authorised person usually works for a stockbroker, one of their responsibilities is to introduce clients to the brokerage firm, and explaining to them the intricacies of investing in securities. As an authorised person, you will be paid a percentage of the transactions that your clients engage in.
The perks of operating as an authorised person are:
- Enhance Your Investing Knowledge– One of the most significant advantages of working as an authorised person is the investing experience you will acquire. Working with a broker offers authorised persons important stock market insights that they can utilize to improve their market understanding and personal trading.
- Access to APIs for Algorithmic Trading– For advanced traders who can come up with their trading algorithms, Angel one provides access to its SmartAPI platform that enables the user access to historical and real time pricing data, besides allowing execution of algorithmic trades.
- Trade as You Earn– Authorised persons cannot act as brokers, but they can trade privately with another broker using their own capital. This self-sustaining loop not only allows authorised persons to better serve their clients but also allows them to feed their investments.
- Ability to Diversify into Other Assets– Sometimes brokers permit their authorised persons to offer other investment options such as mutual funds and loans to their clients, allowing authorised persons to gain knowledge of other forms of securities beyond equities as well.
- Earn Brokerage– The Sub Broker retains a substantial chunk of the brokerage earned by the clients.
- Low Initial Capital Required– The initial investment required to start an authorised person franchise is nominal sum along with a security deposit to be given to the franchiser; the remainder of the expenses are borne by the franchiser.
- Constant Skill Upgradation – The brokerage firms organize training through webinars, seminars, and conferences to provide training to authorised persons.
Meaning of Trading Platforms/Terminals
Trading platforms are software programs used for market position management and execution. The platforms range from simple order entry screens for inexperienced investors to complex and comprehensive toolkits for advanced traders, complete with live streaming quotations and charts.
The basic elements of the Trading Platform/Terminal are:
- Trading terminals/platforms are equipped with real-time market data and quotes. Some terminals have the ability to work together in all categories—in other words, you can all trade in the same programme in currency, commodity, and derivatives.
- Seamless order execution tools are provided through trading platforms/terminals.
- Trading platforms/terminals have extensive analysis tools that can combine previous information and patterns and anticipate accordingly.
- Trade tools are supplied with state-of-the-art charts and graphic solutions. They display all facts in an easy-to-understand and easy-to-assimilate way.
- When functioning over these terminals, all of your data and information are safeguarded in encrypted form.
These trading platforms/terminals are easy to use and are available for PC, laptop, and mobile applications, assisting a trader to use them anywhere around the world. The trader/investor has complete control over the financial transactions. They can keep a close eye on their financial transaction on a real-time basis. These platforms/terminals can minimize brokerage fees. These are the added advantages of using trading platforms/terminals.
The disadvantage of using these platforms/terminals is that a trader is more likely to make an error because a broker does not intervene to offer information about the trade. To avoid losses, proper risk management procedures must be used.
Angel one is India’s premier brokerage firm, offering a unique opportunity to advance your financial career as an authorised person, as well as a technologically advanced trading platform. To learn more about this fantastic opportunity, please visit our website.