This is an agreement between a registered stockbroker and a client for brokerage
services. The client engages the broker to act on their behalf and act as their attorney-
in-fact to buy, sell, and trade in stocks, bonds or other securities in the client’s name.
The client verifies that they understand that they are taking a risk and they are
responsible for all investment decisions and trades. This agreement can be used by
brokers or by individuals or entities that want to hire a broker to help invest capital in
This Broker Contract (“Contract”) made effective _____________(“Commencement Date”) by
and between _______________________, ("Client") and __________________("Broker.")
Whereas the Broker is registered as the a securities broker with _________________________
[insert name of regulatory authority] with registration number _____________;
Whereas the Client desires to invest/trade in those securities/ contracts/other instruments
admitted to dealings on the _________________Exchange (“Exchange”) as defined in the Rules,
Bylaws and Regulations of the Exchange from time to time;
Whereas , the Client is satisfied of the capacity of the Broker to deal in stocks, bonds and other
securities and/or commodities, to deal in derivatives contracts and wishes to execute its orders
through the Broker;
Whereas the Broker has satisfied and shall continuously satisfy itself about the genuineness and
financial soundness of the Client and investment objectives relevant to the services to be
Now, therefore, in consideration of the mutual understanding as set forth in this agreement, the
parties thereto have agreed to the following terms and conditions:
1. Client hereby agrees and engages the Broker to act on Client's behalf and as attorney-in-
fact to buy, sell and trade in stocks, bonds and other securities and/or commodities and/or
contracts relating to the same, on margin or otherwise, for Client's account and at his risk
in his name.
2. This contract shall commence on the Commencement Date and shall be in full force and
effective until terminated by either party on written notice to each other. Any termination
shall not affect any liability with respect to transactions which have been initiated prior to
3. Client agrees to compensate the Broker for the services rendered in accordance with this
contract as follows: ________________________________________
4. The Client further agrees to immediately notify the Broker in writing if there is any
change in the information in the ‘Client registration form’ provided by the Client to the
Broker at the time of opening of the account or at any time thereafter.
5. The Broker warrants that he has informed the Client about the contents of the risk
disclosure document to the notice of Client and made him aware of the significance of
such disclosure documents.
6. The Client agrees that:
a. He has read and understood the risks involved in trading on a stock exchange.
b. He shall be wholly responsible for all his investment decisions and trades.
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c. The failure of the Client to understand the risk involved shall not render a contract as
void or voidable and the Client shall be and shall continue to be responsible for all the
risks and consequences of entering into trades.
7. The Broker and the Client agree to be bound by all the rules, byelaws and regulations of
the Exchange and circulars issued and relevant notifications of Government authorities as
may be in force from time to time.
8. This contract shall inure to the benefit and shall be binding upon the parties hereto
including their successors and assignees.
9. This contract supersedes all prior agreements and understandings between the parties, it
may not be modified, changed or altered by any of the parties without a further written
contract signed by both parties.
Both the Broker and Client agree to the above.
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