Looking for the Best Sub Broker In India?
Great! You have reached the right place. Because of quick developments in the stock market, investors may profit in a variety of ways.
Furthermore, to meet investment needs, the market has developed an industry, resulting in a varied range of investment-related services.
As a consequence of technology improvements, certain businesses, such as stock exchanges and brokers, have gone totally digital.
There are a plethora of low-cost brokers on the internet, for example, which are basically programmes that allow you to trade stocks with little to no human intervention.
Brokers, on the other hand, needed a way to connect and recruit clients, which led to the development of the sub broker function.
This article will define a sub broker and a sub broker franchise, and discuss how to become a sub broker and the many advantages of becoming a sub broker. In the same manner as a broker, a sub broker operates as a go-between for two parties.
Put simply, a stock broker acts as a go-between for an investor and the stock exchange while a sub broker acts as a go-between between the stock broker and the customer.
A sub broker's job is to act as a middleman between the broker and the customer. Bringing individuals into the brokerage company is one of the responsibilities of a sub broker, who usually works for a stock broker.
Clients may benefit from the sub broker's assistance when it comes to investing and dealing with securities. As a sub broker, you will be paid a percentage of the trade. You will be able to earn more money if you seal more and more deals.
"Who is a stock broker in the first place"? you may ask. A sub broker, as previously said, works for or under a broker. There are a few more major differences between the two, such as:
- Sub brokers, unlike stock exchange trading participants, are anonymous. This is one of their most important qualities.
- Sub brokers must get a Certificate of Registration from SEBI in order to do business, but this does not indicate that they are uncertified by the stock market.
Another important difference between a broker and a sub broker is that brokers are paid via brokerage fees, whilst - sub brokers are paid through commission. Sub brokers are not authorised to collect brokerage fees since they are not registered as stock exchange trading members.
To put it in another way, a broker gets paid for each transaction made by his or her client. The sub broker is compensated with a portion of the brokerage fee.
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Benefits Of Being A Sub Broker
- Working as a sub broker or as part of a stock broker franchise has several benefits, one of which is the knowledge developed. Sub brokers have access to important stock market data, which they may utilise to increase their market knowledge and personal transactions.
- Even if they are unable to act as brokers, they may trade privately with any broker using their own funds. This self-sustaining cycle might be used by sub brokers to not only provide better service to their consumers, but also to support their investments.
- Working as a sub broker also allows you to provide services to customers in addition to financial advice and strategy. Some brokers, for example, allow their sub broker franchisees to provide their clients with mutual fund distribution and loan options.
- A third benefit is that as a sub broker, you won't require a huge initial investment since your franchisor will pay the majority of the expenditures. To kick-start their profession, sub brokers require a little initial investment, such as Rs 10,000 or more.
In this guide, we ranked and reviewed the 10+ best sub broker franchise In India, along with our top 3 choices, so that you can pick the best one for you.
Here are my best picks:
Top 10 Best Sub Broker in India
1. Angel Broking Franchise
Angel Broking is a well-known stock broker, situated in Mumbai, India, with more than 30 years of expertise in the industry.
In terms of marketing strategy, it is one of the most forward-thinking brokerage firms.
Angel Broking has offices in more than 150 cities and towns throughout India, with a sub broker network covering more than 500 cities and towns.
Angel Broking customers get access to demat accounts, trading accounts, IPO investments, research reports, robo advisory, and other brokerage services.
Customers may pick from a broad variety of trading goods, such as stocks, derivatives, commodities, currencies, mutual funds, and more, in addition to a comprehensive set of services.
Angel Broking is the biggest broking franchise, with over 11,000 sub brokers, in addition to its other goods and services. The company provides its sub brokers with a diverse range of products and services as well as a variable commission split with its partners.
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2. Sharekhan Franchise
Sharekhan, which was founded 16 years ago, is a well-known stock broker that ranks among the top stock brokers in India.
It has a good reputation and is one of the most common mediums used to start a sub-brokership or franchise.
A Sharekhan sub broker provides all of Sharekhan's goods and services to its clients, including stocks, derivatives, commodities, currencies, mutual funds, initial public offerings (IPOs), investing, saving packages, portfolio management services, and so on.
Sharekhan recognises and appreciates the value of a sub broker in terms of company growth, and it has been actively marketing its sub broker business.
It has also created a number of other business association structures, each with its own risk and return appetite, in order to fulfil the needs of different players.
Sharekhan also helps its business partners expand by providing a variety of training programmes and promotional opportunities. Sharekhan now has over 2,700 sub brokers working in 580 locations.
Continue reading to discover more about Sharekhan's sub broker models as well as other important features such as qualifying criteria, income sharing, investment requirements, and offers.
According to recent market reports, in order to comply with SEBI requirements, all sub brokers will now be changed to Authorised Persons.
For Sharekhan, the functions and obligations of Authorised Persons will be the same as those of sub brokers, but the registration procedure will be different.
Instead of SEBI, they will now be registered with exchanges. All new registrations in the name of an Authorised Person will be subject to the sub broker model.
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3. Motilal Oswal Franchise
Motilal Oswal is a popular option among sub brokers since it is a well-known brand name in the brokerage sector.
The most important reason for its success is the tremendous assistance it offers to its sub-brokers.
Another factor to examine is the variety of business models that are available as well as the level of flexibility.
Motilal Oswal offers stocks, commodities, currencies, derivative instruments, and investment vehicles such as systematic investment plans (SIPs), mutual funds, IPO investments, and insurance.
Since Motilal Oswal offers a wide range of services, including demat accounts, internet trading, intraday trading, and more, the earning potential for sub brokers has doubled.
A Motilal Oswal Franchise or Motilal Oswal Authorised Person Programme has a very large network presence in the country right now, with around 1,500 sub broker offices in over 500 locations.
Read on to know more about Motilal Oswal's many business prospects and how to become involved. All current sub brokers will be converted to Authorised Persons under the new SEBI criteria.
The duties, responsibilities, and business model of a Motilal Oswal Authorised Person will be similar to those of a sub broker. But with the exception that the registration procedure will be far simpler and faster.
All new franchises will be given in the name of an Authorised Person, not a sub broker, who will be responsible for ensuring that they are legitimate.
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4. IIFL Franchise
IIFL has been a forward-thinking brokerage business since its inception in 1995.
IIFL's corporate partnership endeavour has progressed at a rapid pace since its beginning in 2003.
The IIFL offers a wide range of trading and investing options. In addition to consultancy services, it offers credit line and portfolio management services.
With all of these services, IIFL is a fantastic option for sub brokers.
IIFL has expanded to include a nationwide network of sub brokers and offices. There are no different forms of business alliances at IIFL.
This business model, the revenue-sharing ratio, the registration procedure, and the investment requirements are all detailed on the following pages.
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5. ICICI Direct Franchise
In 2003, ICICI Direct Franchise was the first to provide this kind of collaboration.
ICICI Direct was one of the first companies to notice the growing popularity of financial markets and investment corporations.
It was also realised that, in order to meet this expanding need, a retail channel would have to be established in order to attract additional investors from smaller cities.
As a result, ICICI formed a sub broker relationship with a physical presence to provide all of a prospective investor's investing needs.
Limited internet access and a lack of market expertise among such small-town investors were other factors in ICICI’s expansion decision.
By 2012, the ICICI Direct Sub Broker programme, also known as the ICICI Direct Authorised Person Programme, had 212 physical locations, the majority of which were in Tier 1 cities.
The franchising strategy was used to cater to customers from Tier II cities. In 2012, ICICI Direct serviced 428 sites with 1,200 franchised units, according to data.
The franchise models offered by ICICI Direct are ideal for anyone looking to start their own business at a cheap rate.
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6. SMC Franchise
Stock, commodities, currency, derivatives, and insurance, as well as research, financing, insurance broking, and clearing, are among the trading products and services offered by SMC.
It also offers high-net-worth individuals and other retail customers asset management and consulting services.
As a progressive organisation, an SMC Franchise appreciates long-term partnerships.
And strong alliances, thus it places a premium on developing and maintaining strong and loyal relationships with SMC sub brokers.
It also guarantees that sub brokers may preserve their individual identities by providing material that promotes both the sub broker and the SMC brand.
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7. Zerodha Partner
Zerodha was founded on August 15, 2010, with the goal of providing young Indians with creative and unorthodox trading options so that they may trade more often and comfortably.
Zerodha is India's leading stock brokerage firm due to its unique in-house technological services and progressive pricing.
In terms of transaction volume, Zerodha is the most active with the major stock exchanges.
Over 3-4 million customers trade and place orders on the Zerodha trading platforms per day, contributing to over 10% of overall retail trading activity.
The Zerodha team is very disruptive, and they thrive on continually reinventing the wheel and creating new products.
They have gotten to where they are now because of their fiery zeal. The Zerodha Partner Programme is one of Zerodha's most distinctive programmes in India.
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8. Nirmal Bang Franchise
Nirmal Bang Franchise is a partnership model in which a mutual fund broker/sub broker/remisier/distributor/insurance advisor/financial planner or a Nirmal Bang employee must have a particular degree of understanding of financial products.
A sufficient amount of money must be available to invest in infrastructure and personnel; this capital may be little at first, but it may be expanded as the business expands.
A security deposit is also required of the franchise.
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9. Kotak Securities Franchise
Kotak Securities might be one of the first organisations to see the business and income possibilities of having local retail locations.
Kotak Securities was also one of the few brokerage firms that provided opportunities for sub brokers to grow their customer base.
It has also developed a variety of business partnership structures with various characteristics that may be advantageous to different types of individuals at various times.
If you are interested in establishing a sub broker connection with Kotak Securities, read this article first to have a better knowledge of the many models available and how to choose the one that best matches your needs.
As a result of its considerable industry expertise, Kotak Securities is well aware of the various needs and expectations of a sub broker, and as a result, it provides a number of business partnership choices.
Despite the fact that the model's basic assumptions are the same across the board. Each one has its own set of distinguishing characteristics that enable it to adapt to various methodologies.
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10. Upstox Partner
Upstox was founded in 2011 by three young entrepreneurs, Raghu Kumar, Ravi Kumar, and Shrinivas Vishvanath, with the aim of making trading more convenient and affordable.
They began Upstox with the goal of making it one of the most successful financial services firms in the nation. The firm has accomplished a great deal in the past ten years.
In May 2016, Upstox finally released its Upstox Pro trading platform, a very efficient and strong mobile trading platform.
Upstox provides its customers with a wide range of options and makes trading easy. It includes, among other things, equities, commodities, foreign exchange, currencies, initial public offerings, and mutual funds.
The Upstox Partner Programme is one of the biggest in the country.
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Benefits of a sub broker franchise or Authorised Person
Working as a sub broker has the following key advantages:
- High revenue share - The franchisee receives a small fraction of the brokerage fees collected from customers while the sub broker or partner retains the lion’s share.
- Low investment business - The franchise may be started with a minimum investment of Rs.10,000. Only a security deposit is required from the franchiser.
The franchisee is liable for the remaining expenditures. The franchisee may not even need a minimum deposit in certain instances. - Marketing and training support - Because the franchiser is a major corporation, it also assists a sub broker with marketing by providing banners, posters, and hoardings for their locations.
They also provide seminars for their brokerage partners in order to educate them on different aspects of the industry. - Advisory support - Some franchisees also supply their sub brokers with advice, stock suggestions, and ideas in order to assist their consumers and enhance income.
- Products, services and offers - A sub broker has access to any new product, service or deal that the franchiser offers. This allows the sub broker to keep their customer's interest in new products alive.
What is the eligibility criteria to become a sub broker?
What to consider before becoming a sub broker in India?
Documents required to become a sub broker
Below are some key features and accessories that different microwave brands offer and can help you select.
Documents for individuals:
Documents for firms:
Charges for best stock broking franchise in india
Fixed charges:
Security deposit:
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Conclusion
The function of a sub broker has developed as a consequence of an increase in demand for brokers.
While becoming a broker requires a range of licences and credentials, working as a sub broker enables you to do identical functions without having to register as a stock market dealer.
So, while looking for the best sub broker franchise for your company, keep all of these factors in mind and thoroughly evaluate the qualities of each sub broker franchise. Finally, the best sub brokers in India are constantly upskilling and updating.
Before making a choice, it's a good idea to go through the sub broker’s customer list, testimonials, and portfolios.
I hope you liked our article on best sub broker in India, if you have any comments or suggestions do share them in the comments below.
Frequently Asked Question
1. What is the role of a sub broker?
Sub brokers assist their customers in purchasing and selling shares on a stock exchange. Customers may get information on a wide range of securities from them.
They also forward the trading orders of their customers to the trading member or brokerage business with whom they are affiliated. Sub brokers help stockbrokers increase their business volume by purchasing, selling, and dealing with securities.
They expand the stockbroker's business by bringing in new clients and reinvesting in current ones.
2. How do sub brokers make money?
Each transaction that is completed compensates a sub broker with a commission.
Because he/she operates as a middleperson between the stockbroker firms licensed to trade on the stock market (for example, NSE and BSE) and the customers, a sub broker earns more if he/she has a large and high-turnover customer base.
3. Can a sub broker career be profitable?
If a sub broker is an appropriate broker, he or she may earn roughly 60% of the profit a broker generates on any one transaction. The more established the brokers and their systems are, the better it is for a sub broker.
Choosing a proper partner is crucial to making a decent living as a sub broker.
4. What is the difference between a broker and a sub broker?
A stock broker is self-contained while a sub broker serves as a link between the primary stock broker and their customers.
List of Best Sub Broker In India
