Best Sub Broker Franchise in India 2026

Finding the Best Sub Broker in India can be a daunting task.

With so many brokerage houses, plans, brokerage schemes, partnership models, and eligibility requirements, you may be confused about which Sub broker Franchise to choose.

However, you need not worry; we have shortlisted the Top 10 Sub broker Franchises for you here.

This article will help you understand which broker to choose, including their top business model, revenue-sharing arrangements, investment requirements, and more.

Top 10 Best Sub Broker Franchise Companies in India

The Best Sub Broker Franchise in India has been shortlisted based on eight criteria.

These are –

• Market Share
• Investment Requirement
• Commission
• Support Offered
• Sub Broker Program
• Partner Program
• Referral Program
• Mutual Fund Distributor Opportunity

As shown in the table above, Angel One is the top demat franchise business opportunity provider.

Then IIFL follows, which is also quite popular for several reasons that will be discussed.

Then there is everyone’s favourite Upstox and Zerodha, which are also in this ranking. Let’s examine each of these 10 best trading franchises individually.

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Angel One Franchise

The Best Sub broker Franchise in India is Angel One. Angel One, formerly known as Angel Broking, is one of the largest stockbrokers in the country by client count.

Angel One provides a full-service brokerage at a discount broker price, which is a major benefit for partners who work with them.

It received 4.72 points out of 5 and secured first place in the list of the top 10 Stock Broker Franchises in India.

Why Start Angel One Sub Brokership?

While Angel One offers multiple business models, such as an authorised person, a Remisier, and others, the subbroker model is the firm’s most popular.

With the sub-broker model, you can access Angel One’s services & products.

The Angel One Franchise Cost ranges from Rs. 50,000 to Rs. 1 lakh. This includes the franchise fees and the infrastructure set-up cost required for the master franchise model.

You will need office space, employees, and trading terminals. Internet connectivity, phone connections, and a fully air-conditioned office should be under CCTV surveillance.

If you think that’s quite a considerable investment, you must consider the earning opportunity with this model. You can earn between 50% and 70% of the revenue generated by your clientele.

If your clients generate around Rs. 3 lakh of brokerage with Angel One, you can earn Rs. 1.5 lakhs to 2.1 lakhs.

In addition, you can earn Rs. 150 for each new client acquisition and Rs. 150 for each activation.

Moreover, you must compete with other brokerage houses or sub-brokers of other brokers, but not with Angel One partners in your region.

You will receive all kinds of support, from marketing to trading support, client interaction, RM, back office, and everything you can ask for.

Also, you do not have to rethink Angel One’s services, as they are known for their efficient support.

You will receive research and advisory support, which is exceptional support you will need as a Master Franchise.

Sharekhan Franchise

Sharekhan is the 2nd top sub-broker in India. Partnering with one of the country’s oldest stock brokerage houses can be a boon.

Sharekhan is well-known in the stock market for several reasons. It is one of the largest stockbrokers and offers ample learning opportunities in the stock market.

Then, it has a strong network of sub-brokers and partners. Among the business models Sharekhan offers, the top is the Power Broker model.

Why become a Sharekhan Sub Broker?

If you want to opt for the Power Broker model of Sharekhan, you must invest around Rs. 70,000 to Rs. 1 Lakh.

The investment amount includes the securities deposit and the infrastructure requirements. Sharekhan’s infrastructure must be top-notch.

Please ensure the office has all necessary amenities, including air conditioning, CCTV, internet connectivity, phone lines, and other essentials. Then there must be employees to handle multiple clients at once.

Please ensure your office has the highly advanced trading terminals offered by Sharekhan. It must also be easily commutable.

Now you know what you have to invest in and how much. Let’s see how much you can earn as a Sharekhan Sub Broker.

The minimum share of your revenue is 60%, while the maximum is 70%. Although the investment is lower than that of other stock brokers, the revenue share offered is quite high.

You will also receive back-office support for trading, research, advisory services, and more. Marketing support is something you cannot just complain about.

So Sharekhan will create a solid base for your sub-broking business.

IIFL Sub Broker

IIFL, or India Infoline, offers the 3rd Best Stock Broker Affiliate Program. It is known for its excellent research and advisory support for partners and clients.

It has got 4.50 points out of 5 in our ratings. While there are different business models that IIFL offers, the most popular model of this broker is the Authorised Person, commonly known as a Sub-broker.

Why become an IIFL Sub Broker?

To become an authorised person at IIFL, you have to invest between Rs. 50,000 and Rs. 1 Lakh, which is lower than the fees charged by other brokerage houses that offer sub-brokership opportunities.

You may think that since the investment/ security deposit is so low, the revenue sharing would also be low.

However, that is not the scenario at all. IIFL shares between 60% and 75% of your clientele’s revenue.

So, if your clientele generates Rs. 2 lakhs monthly, you will receive anywhere between Rs. 1.2 Lakhs and 1.5 Lakhs. Thus, this broker’s return on investment is pretty high.

As an IIFL Authorised Person (AP), you must have a fully air-conditioned office space under CCTV surveillance.

Then, there must be employees and staff to handle clients. In addition, you must install trading terminals, have a stable internet connection, and have other facilities.

IIFL will provide you with a wide range of support, including trading, back-office, marketing, website-building and maintenance, and RM support.

However, this Top Sub broker Affiliate in India offers the best research and advisory support, which will be your main forte.

Upstox Partner Program

Based on our observations and rankings, Upstox is the 4th best trading franchise in India. This broker operates under a single business model: the Partner Program.

Upstox, a new-age broker, offers highly advanced technology platforms that enhance the trading experience. As a Program of Upstox, you can earn a flat 40% of your clientele’s revenue.

Upstox offers partners a minimum revenue share of 40%. So, if your clientele pays a brokerage of Rs. 3 Lakh monthly to Upstox, you can earn a flat Rs.1,20,000 income.

The broker also runs monthly schemes where you can earn extra up to Rs. 700 per new client acquisition, one of the highest in the industry.

Why Partner with Upstox?

Upstox has been rated 4.6 out of 5, the highest rating among sub-broker franchises in India. You might be amazed to learn that you can become a partner with Upstox for just Rs. 3,000.

So, you do not need to make a security deposit or investment to become an authorised partner of Upstox.

This is hardly found with other brokerage houses. In addition, there is no mandatory infrastructure requirement.

You do not need an office to start a sub-brokership. You can deal with all your clients online.

Since you don’t need client support and everything is online with Upstox, you don’t need a physical office.

Upstox Partner Program offers its partners extra support, including Relationship Manager Support. You will have an RM to help you acquire clients and manage them post-acquisition.

Then, Upstox offers one of the best back-office support with its partners’ portals. On this platform, you can track all the deals, leads, client conversions, and earnings in weekly and monthly formats.

Upstox also offers marketing support, with website building and digital marketing among its most crucial services.

Zerodha Partner Program

Our research and ratings show that Zerodha is rated 4.2 out of 5, making it the 5th best stock broker partner in India.

As you may know, the discount broker has been a game-changer in the stock broking world. While discount brokerage has been around for ages, Zerodha made it famous.

It created a great buzz around the market with its low brokerage charges.

Why Partner with Zerodha?

Zerodha is one of the top demat franchises in India. They provide only one business model: Business Partner. You can enrol as a sub-broker of Zerodha.

However, there is no security deposit or major investment required to obtain sub-brokership, as with brokers.

You must pay Rs. 11,000 for exchange registration and trading in different segments. This is higher than Upstox but much lower than those of all other brokerage houses.

Zerodha AP owner also does not have to set up any office or employ people. A partner needs a laptop, a stable internet connection, and connection-building or networking skills.

If you are wondering what you will get, you’ll receive a share of your client’s revenue on the Zerodha platform.

Zerodha Sub Broker Commission is up to 50% of the revenue generated by the clients. The minimum revenue share one can earn is 20%, and the maximum is 50%.

Then, you will get back-office support, marketing support, RM support, client interaction support, and much more.

Since no investment is required, you can start generating a positive return from the outset.

While these are tangible benefits and perks, there’s also a strong intangible benefit to working with Zerodha: its brand value.

Zerodha is the largest brokerage house in the country by active client count.

When you pitch to prospective clients about the largest stockbroker in the country, you will easily get the attention of the clients.

Motilal Oswal Franchise

Motilal Oswal is the sixth, with a wide range of support; it offers one of the best stock market franchise opportunities, with a 4.55 rating.

It is known for its exceptional services and the wide range of support it provides to its partners.

There are different business models for a partnership opportunity, and you can choose the one that suits you the best. However, the top business model is the Sub-brokers model.

Why Start a Motilal Oswal Franchise Business?

This Best Authorised Person Program in India offers a sub-broker model, which is the new name for sub-brokership, to people who want to become partners.

You must invest around Rs. 1 lakh to Rs. 2 lakh as the Motilal Oswal Franchise Cost to own a sub-brokership.

You will also need office space with employees to serve clients. The office must be well-organised, fully air-conditioned, and have stable internet connectivity.

A CCTV surveillance security system must also be installed.

By becoming a sub-broker of Motilal Oswal, you can earn up to 70% of the revenue, while 60% is the minimum.

So, if your clientele pays Rs. 2 Lakhs as brokerage to Motilal Oswal in a month, you can earn anywhere between Rs. 1.2 Lakhs and Rs. 1.4 Lakhs.

You will also receive a range of support from Motilal Oswal, including marketing, research, and advisory services.

They offer marketing support, local advertising, TV, digital media, website building, and office ads. You will also receive back-office support, trading support, and much more.

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Kotak Securities Franchise

The next in the list of Best Stock Broker franchise in India is Kotak Securities, with 4.20 points out of 5. Kotak Securities is a full-service brokerage house with years of market presence.

Kotak Securities’ top business model is the Business Associate Model. They have named their business models quite differently from those of other stock brokerage houses.

However, the business associate model can be compared to the sub-broker model used by other firms.

Why invest in Kotak Securities Franchise?

To become a business associate of Kotak Securities, you need to pay Rs. 50,000 to Rs. 1 Lakh, and the above will include the security deposit and the infrastructure requirement.

The infrastructure should include office space, employees, CCTV surveillance, air conditioning, trading terminals, internet and phone connectivity.

Now, the benefits you will receive as a business associate of Kotak Securities include a revenue share of up to 70%. Yes, you read that right. You can earn up to 70% of the total revenue that your clientele generates.

So, if they pay a brokerage amounting to Rs. 2 lakh to Kotak Securities in a month, you can receive up to Rs. 1,40,000, while if the entire brokerage generation amounts to Rs. 5 Lakhs, then you can earn up to Rs. 3.5 Lakhs.

So, the more clients you bring and the more they pay brokerage for trades, the more you can earn.

While you will earn a great revenue share, your learning will also be immense. There will be continuous product training, client interaction training, and other training to help you grow and flourish your business.

Kotak Securities Sub Broker Franchise offers support across back-office, marketing, website development, trading, RM, research, and advisory.

You can also explore other business models if you prefer; however, the top model is the business associate model.

Nuvama Partner

In the 8^th place, we have Nuvama, previously known as Edelweiss, as India’s Top 10 Sub Broker Franchise. Nuvama is a renowned stockbroker with extensive market experience.

It offers franchise Ownership with multiple business models. There are business models such as sub-broker and partner, but the Elliance model is the most distinguished and popular.

We give it an overall rating of 4.10 out of 5.

Why Partner with Nuvama?

You might be amazed that you can get Nuvama Partner rights by investing Rs. 1 Lakh, which is relatively low compared to other brokerage houses.

However, that’s not all; even at such a low price for franchise rights, the brokerage house offers 60% to 70% of revenue to franchise owners, which is one of the best things about this brokerage house.

If you follow this Sub Broker business, you can understand how easily and how much higher revenue you can generate from the franchise rights of Nuvama.

To become a franchisee, you’ll need an office and the proper set-up. This is mandatory; you must buy or rent office space.

Then, have some employees, internet connections, phone connections, CCTV surveillance, and other amenities in the office.

Please install the trading terminals to assist the clients in trading. In return, you will receive lots of benefits and support from the brokerage house.

The brokerage house will offer a range of marketing support, including campaigns, trading, and back-office support.

Advisory support and multiple training sessions will help you understand Nuvama Wealth’s products and pitch them effectively.

ICICI Direct Franchise

ICICI Direct is India’s 9^th Best Sub Broker Partner, per our ratings and rankings. The stockbroker offers 5 business models, one of the highest in the industry.

This brokerage house has a 9.3 rating from us due to the additional services it offers. Its top business model has an Authorised Person who can offer the broker’s 24 products and services to clients.

Why become an ICICI Direct Franchise?

As an authorised person of the esteemed brokerage house in India, you can earn up to 70% of your clientele’s revenue with just an investment of Rs. 75,000 to Rs. 1.3 Lakh.

Yes, the ICICI Direct Franchise model doesn’t charge a security deposit or fees for the partner model. Also, this investment is required only for the subbroker business model, not for the other four models.

With such low investment and basic infrastructure requirements for the AP model, you can access the broadest range of support that ICICI Direct offers its partners.

While back-office support, marketing support, trading, advisory, and other standard support are readily available, ICICI Direct also offers mobile applications specifically designed for partners.

That said, ICICI Direct’s other business models share slightly lower revenue with the partners. However, that can also be justified, as no investment is required in any of those business models.

There is also ICICI Direct’s Referral Program, which is like the cherry on top for brokerage house clients.

5Paisa Partner

5Paisa is ranked 10th in the list of Best Stock Broking Partners. According to our rating system, this has secured 4.0 points out of 5.

5Paisa is known for its exceptionally well-curated technology for trading with clients and partners. In the age of discount brokerage houses, 5Paisa is a big name.

Why Partner with 5Paisa?

This 5Paisa Partner business requires no investment. Yes, becoming a partner with 5Paisa requires no investment or infrastructure, as the work is done remotely.

The revenue you will get is flat at 50% of the total revenue generated by your clientele.

Apart from the revenue, you will receive multiple supports, including marketing support, especially website and digital marketing support, and then there will be RM support. You will receive a high-end partner portal, back-office support, and more.

So, these are the top 10 stock broking franchises in India that are currently offering the best partnership opportunities. You can partner with the one that perfectly fits your business agenda and goals.

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Sub Broker Franchise Comparison Table

The table above provides a detailed comparison of stock brokers offering sub-broker partnership services.

Here you can compare the commission or revenue-sharing models offered to clients, as well as the investment required to start a stock broking franchise.

Best Sub Broker by Category

Now, let’s read about various categories for choosing these stockbrokers. We have also ranked the brokerage houses according to individual criteria.

This will help you evaluate which broker stands out in which criteria. Then the article will follow much other information as well.

Best Stock Broker Franchise with Highest Market Share

The first criterion we have considered in evaluating stockbrokers offering partnership opportunities is market share.

This is one of the most important criteria in our analysis for two main reasons. One is that the greater the market share, the higher the brand value.

So it will be easy for the partner to pitch the broker to clients. The second reason is the trading volume; if a brokerage house has a considerable volume, it helps intraday trading somewhat.

By market share, the top three brokers for partnerships are Angel One, which has the largest number of clients in India.

Then comes Upstox, and then Zerodha. Though Zerodha has the most prominent active clientele, Upstox has a higher market share.

Motilal Oswal and Sharekhan came in fourth and fifth place. So, if you want to associate yourself with the Best Stock Broker Franchise in India, these are your options.

Top Sub Broker with Zero Deposit or Low Investment

Investment requirements are the second-most important criterion when choosing the Best Broker for sub-brokership.

This is considered as 2^nd most crucial criterion because every person has a budget, right? So, considering the investment requirement is vital.

Investment in partnership opportunities in India for stock brokers varies, including partnership fees, security deposits, and infrastructure set-up. Now, the sub-broker franchise cost and requirements vary from one to another.

Upstox charges only Rs. 3000, which is why it is at the top of our list for this criterion. Although 5Paisa requires no investment, it ranks 4th due to other specific factors.

The second is Zerodha, another Brokerage house that charges much less and does not require a security deposit. In the third position is Nuvama.

Suppose you are looking for a low-investment partnership opportunity in the stockbroking industry.

In that case, you can follow this criterion as the most important one when choosing a stockbroker to partner with.

That said, only a handful of brokerage houses, mainly discount brokers, charge such a low fee to become a partner.

The investment requirement typically ranges from Rs. 1 lakh to Rs. 3 lakh.

Best Stock Broking Franchise in India with High Commission

Of course, the third criterion is the commission you are seeking for the Best Stock Broking Franchise in India.

So, the commission plays a significant role in deciding which stockbroker to choose. The average commission range you can expect is 50% to 70%.

However, the commission varies from one broker to another and also depends on the business model.

For instance, the Remisier model pays an average commission of around 30%, while the average for sub-broker or master franchise models is 70%.

So, you need to consider the business model while considering the commission. The brokers offering the highest commission include the IIFL Sub-broker business model, Angel One Franchise, Master Franchise Business model, and Sharekhan Franchise.

These three offer the highest commissions among all brokers in the industry. With these brokers, you can earn up to 80% of the revenue share.

Then, Kotak Securities is in fourth position and Nuvama in fifth, both of which offer quite high revenue-sharing or commission rates.

Top Sub Brokers in India with Top-Notch Support

Certain supports are necessary for every partner. In terms of rendering support and facilities, the top sub-brokers in India are Motilal Oswal, followed by Angel One and IIFL.

You can expect the best support from these three stockbrokers. They offer comprehensive support, including marketing, to help promote your business locally and online.

Then there is the back office, trading, and client interaction support. Most of these top brokers also offer RM support.

Then, IIFL, Angel One, and Motilal Oswal are applauded for their advisory support to the partners.

ICICI Direct offers a wide range of support services and ranks 4th on this list. Then there is Sharekhan, which also provides all kinds of support.

List the Top 10 Best Sub Broker Programs in India

The 5th criterion for picking these Top 10 Sub brokers in India is their programs.

The sub-broker, now known as an Authorised person, is one of the most common business models used by almost every broker.

This is also one of the top models of most brokerage houses. Angel One offers the best sub-broker program, followed by IIFL and Motilal Oswal.

They offer a wide variety of products to sub-brokers for clients. The range of support, facilities and revenue sharing makes these brokers the best for the sub-brokers program.

List of Top 10 Best Sub Broker Partners in India

The next criterion for choosing the Top 10 Sub Broker Partners in India is the partner’s program. Some brokerage houses offer unique programs.

The scope of work here is similar to the sub-broker program. However, the investment requirement is pretty low.

Discount brokers mainly offer this program; thus, the top two brokerage houses offering it are Upstox and Zerodha, with Angel One in third place.

5Paisa also has a partner program, which ranks fourth on this list. The other three out of four, except Angel One, offer only a partner program.

List of Best Stock Broker Referral Programs in India

The referral program is the seventh criterion we used to pick the Best Stock Broker Referral Program in India.

While the referral program is mainly for clients, not partners, it is one of the most popular business models among stock brokers.

Angel One offers the best referral program, per our rankings; IIFL and Kotak Securities follow.

Apart from these three, Sharekhan and 5 Paisa rank fourth and fifth, respectively, and offer a lucrative referral program.

The referral program can also encourage people to open accounts with brokerage houses without much effort.

One can earn vouchers, cash back, or other rewards by referring the brokerage house.

List of Best Mutual Fund Distributors in India

Stock brokers offer mutual funds; thus, our final criterion is the best mutual fund distributor in India for selecting stock brokers for the best partnership opportunity in the mutual fund domain.

The first name in this list is not in our main list, as this broker is best for mutual fund distribution only, not for other business opportunities.

This is the NJ Wealth MF Distributor. Then, the list has Zerodha and Upstox. Discount brokers secured top ranks as mutual fund distributor partners, which is quite amazing.

Motilal Oswal has secured the fourth position, followed by ICICI Direct. So, if you are specifically looking for brokers who offer mutual funds, you can also look at this list.

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How to Choose a Sub Broker Franchise?

Choosing the right sub-broker franchise is mandatory before investing. Factors such as revenue sharing, brand reputation, tech support, and customer service should be thoroughly assessed.

Also, it is essential to assess the initial investment and regulatory requirements before pursuing a partnership.

Check Brokerage Revenue Sharing

The first thing to consider before joining a brokerage firm as a sub-broker is its revenue-sharing model.

Any entrepreneur would expect a decent commission from the broker, as it ensures the business runs smoothly over the long term.

Besides, the sub-broker must check for any hidden charges or incentives from the broker.

Evaluate Brand Reputation

The brand with a good reputation helps the sub brokers in gaining the customer’s trust easily.

Also, brand reputation translates into credibility, which is essential for easy customer onboarding.

Moreover, a reputable brand often attracts loyal customers, ensuring consistent sales for sub-brokers.

Consider Technology & Trading Platform

Investors are adapting to the changing technologies. The inclusion of technology in trading platforms is a broad idea on the brokerage firm’s side.

Moreover, a user-friendly trading platform is a key to attracting customers to the business.

So, when looking to partner with a sub-broker franchise, enquire whether the brand offers the latest technology, such as advanced charting tools, real-time market data, fast fund transfers, and transparency.

Assess Client Support

When partnering, it is essential to check the client support offered by the brand, as well as the partner support.

Check whether the broker provides extensive customer support, such as a dedicated relationship manager and training assistance.

Good support from the brand helps sub-brokers in providing the highest level of client satisfaction. Also, it helps build long-term relationships with the clients.

Understand Initial Investment

For most of the upcoming entrepreneurs, the initial investment to start a new business is all that matters.

Since initial investment varies across brokerage firms, finding the firm with a budget-friendly investment is very important.

Usually, the initial investment includes a security deposit, inventory cost, warehouse rent, office setup cost, employee salaries, etc.

So, understand the costs incurred before stepping into the franchise business.

Verify Regulatory Compliance

As a franchisee, it is essential to know whether the brand is in proper regulatory compliance with SEBI.

Without proper regulatory compliance, both the sub-broker and the client will be at risk. Also, everything about the documentation and financial transactions should be transparent.

All these factors contribute to the franchise broker’s trustworthiness.

How much Can You Earn from a Sub Broker Franchise?

The sub-broker franchise is among the most profitable in the franchise industry.

There is significant scope to earn decent profits from the sub-broker franchise business through commissions and incentives.

Average Monthly Earnings

Not all sub-brokers of different brands earn the same income. However, earnings often depend on factors such as the number of active clients and trading volume.

On average, sub brokers can earn anywhere between Rs. 50,000 to Rs. 5 lakhs or more, depending on the aforesaid factors. Also, experienced partners with large client bases earn substantial profits.

Factors Affecting Income

There are not one but multiple factors that affect a sub-broker’s income. For example, client onboarding, trading volume, market fluctuations, commissions, and customer retention affect income.

However, by improving these factors and selling multiple products to investors and partners, partners can generate decent income.

Revenue Models Explained

The revenue-sharing model of brokerage firms usually includes a fixed brokerage fee or a commission based on the trading volume.

From the sub-broker’s income, the firm pays a commission. This amount could vary from brand to brand or even by the trading amount.

Some companies offer additional incentives to encourage the sub-brokers.

Long-Term Business Potential

As demand for stocks increases, there is significant potential for the business to grow. Also, the scope for the opportunities is high for the retailers.

As the client base grows, income increases, indicating significant long-term potential for the business. Moreover, loyal clients stay for years, providing a stable income for sub-brokers.

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Sub Broker vs Remisier

AP/Sub Broker and Remisier/Partner are popular brokerage models in the stock market industry. Each of these roles has different responsibilities to fulfil, which were discussed below.

What is a Sub Broker?

A sub-broker or an authorised person is an individual who sells financial products on behalf of the brokerage companies to the clients.

They assist investors in opening a Demat account, trading, and providing guidance. For all these, the company pays the sub-brokers a commission.

What is a Remisier?

Unlike a sub-broker, a remisier is an individual who refers clients to a brokerage firm rather than assisting investors with trading.

Their primary role is to bring clients to the firm. For each referral, they receive an attractive commission from the brokerage firm.

Difference Between Sub Broker and Remisier

As we said earlier, a sub-broker guides and assists the investors, while the remisier is limited to referring clients to the brokerage firm.

Moreover, a sub-broker handles client acquisition, account creation, and trading support. On the other hand, a remisier handles referrals alone.

Which Model is More Profitable?

Both models have their own advantages and can prove profitable for brokers.

However, as the sub-broker model carries more responsibilities and therefore more income, the remisier model is limited to referrals and thus only to referral bonuses.

While the sub-broker model is suited for those who like to take on responsibilities, the remisier model is suited for individuals who want to earn from the comfort of their homes.

Benefits of Starting a Sub Broker Business

Starting a sub-broker business is very beneficial for upcoming entrepreneurs.

With the increasing demand for the franchise industry, low initial investment, scalability, and more, it is the best business opportunity for aspiring entrepreneurs.

Growing Retail Investor Market

In recent times, investor interest has increased drastically due to greater awareness of the stock market.

This increasing interest among investors creates strong opportunities for retailers. Also, it allows sub-brokers to acquire new clients and expand their business steadily.

Recurring Brokerage Income

As the name suggests, brokerage income, or commission, is earned on every transaction the client makes.

As soon as the client starts trading, the sub-broker starts earning commission. For long-term trading clients, commissions will be regular, ensuring a steady income for the sub-brokers.

Also, recurring income reduces the need to acquire new clients constantly.

Low Initial Investment

The initial investment to start the sub-broker business is relatively low. Individuals, especially newbies, can easily start a sub-broker franchise with low investment and almost zero risk.

Many brokerage firms offer a sub-broker franchise at a low initial investment. Moreover, the low investment encourages many aspiring entrepreneurs to join the industry.

Work from Home Possibility

Working from home is a new trend, and many individuals are showing great interest in it.

Lately, brokerage firms have also been offering work-from-home opportunities to partners.

This allows sub-brokers to operate their businesses from the comfort of their homes without needing to set up an office.

Also, the partners need to arrange a computer setup along with internet connectivity to carry out the job.

Scalability of Business

The sub-broker business is one of those businesses that is booming right now. With an increasing client base, the business’s scalability also increases.

Also, franchisees can expand their businesses by offering new financial products to clients. Moreover, the sub-brokers can expand the business by employing a dedicated relationship manager.

Risks & Challenges of AP Business

Like there are benefits, there are also risks and challenges that the franchise owners must face.

While these challenges are common in any industry, franchisees can work to overcome them to succeed in the business.

Market Dependency

As we all know, investments are subject to market risk. This means that investments are completely dependent on the fluctuating markets.

The business is completely dependent on the market, so the brokerage is as well. So, it is wise for the sub-brokers to focus on maintaining healthy client relationships to maintain stability.

Client Acquisition Challenges

The sub-broker industry is very competitive, and finding clients, especially long-term clients, is very challenging.

Here, the term “long-term clients” refers to long-term investors. Also, maintaining consistency in services and keeping the investors engaged is difficult.

Moreover, customer retention is challenging as customers become aware of other competitors and their offerings.

Regulatory Changes

Regulatory changes can occur at any time and may affect the brokerage business. The SEBI regulates the stock market industry to a great extent.

All investment companies must follow the regulatory changes it proposes. The changes include the commission structure, regulatory norms, and more.

To legally run the business, the partners must comply with SEBI regulations.

Competition from Discount Brokers

The discount brokers industry is vast, and so is the competition in it.

Brokers make competition too tough by offering low brokerage fees and advanced technology on their trading platforms to attract customers.

To sustain the competition, the sub brokers must stay authentic and maintain strong relationships with the customers.

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FAQs on Best Sub Broker Franchise in India

Find various FAQs on Best Stock Broking Franchise in India –

Which is the best sub broker franchise in India?

Angel One is considered one of the best sub broker franchises in India because it offers high revenue sharing, strong partner support, advanced trading platforms, and a large customer base.

Which broker gives the highest commission?

IIFL Sub Broker is a brokerage firm that offers the highest commission in the industry. It offers partners a revenue share of up to 80%.

How much investment is required?

The investment required to set up a sub-broker franchise ranges between Rs. 10,000 and Rs. 2 lakh. However, it changes from one brokerage firm to another.

Is sub broker business profitable?

The sub-broker business can be profitable, given a wide network of loyal clients, high trading volumes, and recurring commissions.

Can I start without office space?

With new work-from-home models in place, it is possible to start a sub-broker business without office space.

What is the difference between a sub-broker and an authorised person?

In terms of responsibilities, a sub-broker and an authorised person are the same. However, a sub-broker is considered an authorised person under SEBI.

Which broker is best for beginners?

Upstox is one of the best brokers for beginners to partner with. The brand has a low initial investment and provides strong tech support to the partners.

How do sub-brokers earn money?

The main source of income for sub-brokers is through commissions. Also, they receive incentives for opening a new trading account.

What is a master franchise?

A master franchise is a business model that offers a monopoly of the partner in a specific region by not offering partnership opportunities to anyone in that area.

Thus, the master franchise can get more clients from a particular area.

What is a referral program?

The referral program helps clients earn extra cash, rewards, and vouchers for referring friends, family, or others to the stock brokerage house.

You can also get discounts on brokerage or cashback offers.

Who is a partner of a stockbroker?

A partner of a stockbroker can be anyone who joins the firm as a partner to sell the firm’s products and services, for which they will earn a commission.

How much can I earn as a partner of a stockbroker?

A partner’s earning potential depends on the business model. If you opt for a master franchise, you can earn between 70% and 80% of the revenue.

If you become a sub-broker or authorised person, you can earn around 60% to 80%, while Remisier, IFAs, and employees of entrepreneurs earn around 40% to 50% or less.

Am I eligible to become a partner?

If you are over 21 years old and a graduate with basic market knowledge, you are likely eligible.

However, you must complete specific certifications for a business, such as a sub-broker and franchise.

How much do I need to invest?

The investment requirement also varies with the business model. If you are purchasing franchise rights, you must pay around Rs. 3 lakhs to Rs. 5 lakhs.

This will also include the mandatory infrastructure cost. Then, sub-brokers need to pay around Rs. 1-2 lakhs.

Is there any no-investment business model?

Yes, some brokers offer Zero or low-investment sub-broker models; however, they also offer only a 50% revenue share to sub-brokers.

However, business models such as Remisiers, IFAs, IAs, and others often have no investment requirements.

Which business model offers the highest commission?

Of course, the master franchise business model offers the highest commission. You can earn up to 80% of the revenue share as a franchise owner of any stockbroking firm.

Who is an Authorised Person?

An authorised person is a Stock Market sub-broker. Recently, the name has been changed to the authorised person, while the duties remain the same.

The authorised person has to identify, pitch, acquire, assist, and retain the clients.

Best Sub Broker in India – Conclusion

So, now you know the criteria you need to check when picking the best sub-broker in India. You know how much you have to invest, your returns, different business models, etc.

This information would help you pick the right brokerage house to partner with. The revenue and investments depend heavily on the stockbroker you choose.

So, make your pick wisely for long-term benefit.