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 get confused about which Sub Broker Franchise you should opt for.
However, you do not have to worry, as we have shortlisted the Top 10 Sub Broker Franchise for you here.
So, this article will help you understand which broker to choose and their top business model, revenue sharing, investment requirement, and a lot more.
Top 10 Stock Broker Franchise Business in India 2023
|1||Angel Broking Franchise|
|2||IIFL Sub Broker|
|5||Motilal Oswal Franchise|
|6||Kotak Securities Franchise|
|9||ICICI Direct Franchise|
The Best Sub Broker Franchise in India has been shortlisted based on eight criteria.
These are –
- Market Share
- Investment Requirement
- Support Offered
- Sub Broker Program
- Partner Program
- Referral Program
- Mutual Fund Distributor Opportunity
As you can see in the table above, Angel Broking also known as Angel One, tops the list of Sub Broker Opportunity providers.
Then IIFL follows, which is also quite popular for multiple reasons, which will be discussed.
Then there is everyone’s favorite Upstox and Zerodha also in this ranking. Let’s see each of these ten best sub-broker franchises individually.
Angel Broking Franchise
The Best Sub Broker Franchise in India is Angel Broking. Angel Broking now Angel One is the largest stock broker in the country by the number of clients and offers all services of a full-service brokerage house at a price of a discount broker.
This is a huge benefit for the partners associating themselves with Angel Broking. It has got 9.8 points out of 10 and secured 1st place in the list of top 10 Stock Broker Franchises in India.
Why Start Angel Broking Sub Brokership?
While Angel Broking offers multiple business models like an authorised person, Remisier, and others, the Sub broker model is the firm’s most popular.
By opting for the sub broker model, you can access various services & products Angel Broking offers.
You must invest around Rs.50,000 to Rs.1 lakh to purchase the franchise rights. 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 huge investment, you also need to 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.5 lakh of the brokerage with Angel Broking, you can earn Rs.2.5 lakhs to 3.5 lakhs.
Along with this, you can also earn Rs.150 + Rs.150 for every new client acquisition & activation respectively.
Moreover, you must compete with other brokerage houses or sub-brokers of other brokers but not with Angel Broking partners in your region.
You will receive all kinds of support, from marketing support to trading support, client interaction, RM, back office, and everything you can ask for.
Also, you do not have to rethink Angel Broking’s services, as they are known for their efficient service support.
You will receive research and advisory support, one of the exceptional support you will need as a Master Franchise.
IIFL Sub Broker
IIFL, or India Infoline, offers the 2nd Best Stock Broker Affiliate Program. They are known for its excellent research and advisory support to its partners and clients.
It has got 9.75 points out of 10 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 Sub-broker.
Why become an IIFL Sub Broker?
When becoming an authorised person of IIFL, you have to invest around Rs.50,000 to Rs.1 Lakh, which is comparatively way lower than other brokerage houses which 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% revenue that your clientele generates.
So, if your clientele generates Rs.5 lakhs monthly, you will receive anywhere between Rs.3 Lakhs to 3.75 Lakhs. So, the return on investment for this broker is pretty high.
As an authorized person, you must have fully air-conditioned office space, which must be under CCTV surveillance.
Then there must be employees and staff to handle clients. Apart from that, you must install trading terminals and have a stable internet connection and other facilities.
You will receive a plethora of support from IIFL, including trading support, back office support, marketing support, support to build and maintain a website, and RM support.
However, the best support from this Top Sub Broker Affiliate in India is research and advisory support, which will be your main forte.
Upstox Partner Program
Upstox is the 3rd Best Sub Broker in India, as per our observation and ranking. This Broker has one single business model, i.e., 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 flat 40% of your clientele’s revenue.
The minimum Upstox offers to the partners are 40% of the revenue share. So, if your clientele pays a brokerage of Rs.1 Lakh monthly to Upstox, you can earn flat Rs.40,000 income.
The broker also runs monthly schemes where you can earn extra upto Rs.700 per new client acquisition, this is one of the highest in the industry.
Why Partner with Upstox?
Upstox has been rated 9.7 out of 10, the highest for any sub broker franchise in India. You might be amazed, but you can become a partner of Upstox just by paying Rs.3,000.
So, there is no security deposit or investment you need to become an authorized partner of Upstox. This is hardly found with any other brokerage houses. On top of that, there is no mandatory infrastructure requirement.
You do not have to have an office to start a sub brokership. You can deal with all your clients online. Since you do not have to offer any dealing support to your clients and everything is online with Upstox, you do not require any physical office space.
Upstox offers extra support to its partners, which includes Relationship Manager Support. You will have an RM to help you in your client acquisition and handling clients after acquisition.
Then Upstox offers one of the best back-office support with its partners’ portals. You can track all the deals, leads, and client conversions on this platform, and your earnings in weekly and monthly formats.
There is also marketing support offered by Upstox, where website building and digital marketing are one of the most crucial support the broker offers.
Zerodha Partner Program
Zerodha has been rated 9.65 out of 10 as per our research and ratings, making it the 4th Best Stock Broker Partner in India.
The discount broker has been a game changer in the stock broking world, as you may know. While discount brokerage has been there 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 Sub Broker Partners in India, and they provide only one business model, i.e., Business Partner. You can enroll yourself as a sub-broker of Zerodha.
However, there is no security deposit or major investment you need to make, which all sub-brokers have to do to get the sub-brokership from brokers.
You must pay Rs.11,000 for exchange registration & for trading in different segments. It is higher than Upstox but way lesser than all other brokerage houses.
You also do not have to set up any office or employ people. You only need a laptop, a stable internet connection, and connection-building or networking skills.
Now what you will get, you must be wondering, aren’t you? You will get a share of your client’s revenue on the Zerodha platform.
Zerodha shares up to 50% of the revenue with the sub-brokers. 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 involved, you can only start generating a positive return from the initial days.
While these are tangible benefits and perks, there is a huge intangible benefit to associating with Zerodha and, i.e., its brand value.
Zerodha is the largest brokerage house in the country by active client base. You will easily pitch to prospective clients when you are pitching about the largest stock broker in the country.
Motilal Oswal Franchise
In the fifth place of Best Broker for Sub Brokership is Motilal Oswal with 9.6 out of 10. Motilal Oswal is known for its exceptional services and wide range of support 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 Motilal Oswal Franchise business?
This Top Sub Broker Franchise in India offers a sub-brokers model or Authorised person, which is the new name for sub-brokership to the people willing to become its partner. You will need to invest around Rs.1 Lakhs to Rs.2 Lakhs to get Motilal Oswal’s sub-brokership.
You will also need office space with employees to cater to clients. The office must be well organized, fully air-conditioned, and with stable internet connectivity. There must be a security system installed that is CCTV surveillance.
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.
Also, you will receive all kinds of support from Motilal Oswal, from marketing support to research and advisory.
They offer marketing support, local advertising, TV, digital media, website building, and office ads. Then you will receive back-office support, trading support, and much more.
Similar Topics on Sub Broker Business
Kotak Securities Franchise
The next Best Stock Broker Franchise in India is Kotak securities, with 9.55 points out of 10. Kotak Securities is a full-service brokerage house with years of presence in the market.
The top model of Kotak Securities, out of all the other business models, is the Business Associate Model. They have named the business models quite differently than other stock brokerage houses.
However, the business associate model can be compared to the sub-brokers model of 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 things you will receive by becoming 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 brokerage amounting to Rs.1 lakh to Kotak Securities in a month, you can receive up to Rs.70,000, while 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 great revenue share, your learning will also be immense. There will be continuous product training, client interaction training, and other pieces of training to help you grow and flourish your business.
Kotak Securities offer support, including back office, marketing, website development, trading, RM, research, and advisory.
There are also business models you can check if you want to opt for; however, the top model is this business associate business model.
The 7th Top Sub Brokers in India is Sharekhan. Becoming a partner of one of the oldest stock brokerage houses in the country can be a boon.
Sharekhan has been known in the stock market for multiple reasons. It is one of the largest stock brokers, offering ample learning opportunities about the stock market.
Then it has a strong network of sub-brokers and partners. Out of all the business models that Sharekhan offers, the top model is the Power Broker business model.
Why become a Sharekhan Sub Broker?
If you want to opt for the Power Broker model of Stock Market Sub Broker – Sharekhan, you need to invest around Rs.70,000 to Rs.1 Lakh.
The investment amount includes the securities deposit and the infrastructure requirements. The infrastructure of Sharekhan has to be top-notch.
You must have a great office with all amenities like air-conditioning, CCTV surveillance, internet connectivity, phone connections, and others. Then there must be employees to handle multiple clients at a time.
Your office must have highly advanced trading terminals offered by Sharekhan. Also, you must remember that the office must be in an easily commutable place.
Now you know what you have to invest in and how much. Let’s see how much you can earn as a Power Broker of Sharekhan.
The minimum share in your revenue is 60%, while the maximum is 70%. The investment being comparatively lower than other stock brokers, the share of revenue offered is pretty high.
You will also receive support from the back office for trading, research, advisory, and more. Marketing support is something you cannot just complain about.
So, Sharekhan will create a solid base for your sub-broking business.
In the 8th place, we have Nuvama, previously known as Edelweiss, as India’s Top 10 Sub Broker Franchise. Nuvama is a renowned stock broker with extensive experience in the market.
It offers franchise Ownership with multiple business models. There are business models like sub broker and partner, but the Elliance model is the most distinguished and popular one. It has 9.4 points out of 10 from us as the overall rating.
Why Partner with Nuvama?
You might be amazed to know that you can get the franchise rights of Nuvama by just investing Rs.1 Lakh, which is quite low compared to other brokerage houses.
However, that’s not all; even after such a low price for franchise rights, the brokerage house offers around 60% to 70% of the revenue to the franchise owners, which is one of the best things about this brokerage house.
If you follow this Sub Broker Franchise Comparison, you can understand how easily and higher revenue you can generate from the franchise rights of Nuvama.
To become a franchisee, you must have an office and proper set-up. This is mandatory, and you must buy or rent an office space.
Then have some employees, internet connections, phone connections, CCTV surveillance, and other amenities in the office.
You have to install the trading terminals for trading assistance to the clients. In return, you will receive lots of benefits and support from the brokerage house.
From marketing support which will include all kinds of marketing campaigns, to trading support and back office support, all will be offered by the Brokerage house.
There will be advisory support and multiple pieces of training to help you understand the products of Nuvama Wealth and pitch in the right way.
ICICI Direct Franchise
ICICI Direct is India’s 9th Best Sub Broker Partner, per our ratings and rankings. The stock broker offers 5 business models, one of the highest in the industry.
This brokerage house has got 9.3 ratings from us because of the other facilities it offers. Its top business model has Authorised Person, which can offer 24 products and services of the broker to the 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 Lakh.
Yes, ICICI Direct doesn’t charge any security deposit or fees for the partner model. Also, this investment is required only for the Sub broker business model, not for the other four models.
With such a low investment requirement and only basic infrastructure requirements for the AP model, you will have access to the widest range of support that ICICI Direct offers its partners.
While back-office support, marketing support, trading, advisory, and other common support are readily available, ICICI Direct also offers mobile applications specifically designed for partners.
That said, the other business models of ICICI Direct share a bit lower revenue with the partners. However, that can also be justified as no investment is involved in all those business models.
There is also the Stock Broker Referral Program of ICICI Direct, which is like a cherry on the top for brokerage house clients.
In the 10th position of Best Stock Broking Partner, we have 5Paisa. This has secured 9.2 points out of 10 as per our rating system.
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?
The top business model of this broker is the Partner model, which requires you to invest zero rupees.
Yes, there is no investment requirement for becoming a partner of 5Paisa and no need for any 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 support, 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 ten stock broking franchises in India presently offering the best partnership opportunities. You can partner with the one that perfectly fits your business agenda and goals.
Now you will read about the criteria we have considered for choosing these stock brokers. We have also ranked the brokerage houses as per 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
|1||Angel Broking Franchise|
|4||Motilal Oswal Franchise|
|6||IIFL Sub Broker|
|7||Kotak Securities Franchise|
|9||ICICI Direct Franchise|
The first criterion we have considered is the Market share for evaluating the stock brokers offering partnership opportunities.
This is one of the most important criteria per our analysis due to two main aspects. One is that the more market share, the higher the brand value.
So it will be easy for the partner to pitch to the clients about the broker. The second reason is the trading volume; if a brokerage house has a huge volume, it helps intraday trading to some extent.
As per market share, the top three brokers for partnering are Angel Broking, which has the highest number of clients in India.
Then comes the Upstox brokerage house and then Zerodha. Though Zerodha has the largest number of active clientele, Upstox has a higher market share.
Motilal Oswal and Sharekhan come in fourth and fifth place. So, if you want to associate yourself with the most popular Best Stock Broker Franchise in India, these are your options.
Top Sub Broker with Zero Deposit or Low Investment
|5||Angel Broking Franchise|
|6||IIFL Sub Broker|
|7||Kotak Securities Franchise|
|9||Motilal Oswal Franchise|
|10||ICICI Direct Franchise|
Investment requirements are the second most important criterion for choosing the Best Broker for Sub Brokership.
This is considered as 2nd most important criterion because every person has a budget, isn’t it? So, considering the investment requirement is crucial.
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. Though 5Paisa requires no investment, it is in the 4th position considering certain other facts.
The second is Zerodha, another Brokerage house that charges way lower and has no security deposit. In the third position, there is Nuvama.
Suppose you are looking for a low-investment partnership opportunity in the stock broking industry.
In that case, you can follow this criterion as the most important one for choosing a stock broker to partner with.
That said, only a handful of brokerage houses, mainly discount brokers, charge such a low price for becoming a partner.
Mostly, the investment requirement varies between Rs. 1 lakh to Rs. 3 lakhs in most cases.
Best Stock Broking Franchise in India with High Commission
|1||IIFL Sub Broker|
|2||Angel Broking Franchise|
|4||Kotak Securities Franchise|
|9||Motilal Oswal Franchise|
|10||ICICI Direct Franchise|
The 3rd criterion is the commission, of course, for which you are looking for the Best Stock Broking Franchise in India.
So, the commission plays a huge role in deciding which stock broker to associate with. The average range of commission that you can expect is between 50% and 70%.
However, the commission varies from one broker to another and also as per 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 Broking Franchise, Master Franchise Business model, and Sharekhan Franchise.
These three offers one of the highest commission amongst all the other brokers in the industry. You can earn up to 80% of the revenue share with these brokers.
Then there is Kotak Securities in the 4th position and Nuvama in the 5th which also offers quite a high revenue share or commission.
Top Sub Brokers in India with Top-Notch Support
|1||Motilal Oswal Franchise|
|2||Angel Broking Franchise|
|3||IIFL Sub Broker|
|4||ICICI Direct Franchise|
|6||Kotak Securities Franchise|
For every partner, certain supports are necessary. As per rendering support and facilities, the Top Sub Brokers in India are Motilal Oswal, followed by Angel Broking and IIFL.
You can expect the best support from these three stock brokers. They offer all forms of support, including marketing support, to help promote your business in your locality and online.
Then there is back office support, trading support, and client interaction support. Most of these top brokers offer RM support as well.
Then IIFL, Angel Broking, and Motilal Oswal are applauded for their advisory support to the partners.
ICICI Direct offers a wide range of support and is ranked 4th in this list. Then there is Sharekhan which offers all kinds of support as well.
List Top 10 Best Sub Broker Program in India
|1||Angel Broking Sub Broker|
|2||IIFL Sub Broker|
|3||Motilal Oswal Sub Broker|
|4||Sharekhan Sub Broker|
|5||Kotak Securities Sub Broker|
|6||ICICI Direct Sub Broker|
|7||Nuvama Sub Broker|
|8||Choice Broking Sub Broker|
|9||SMC Global Sub Broker|
|10||Nirmal Bang Sub Broker|
The 5th criterion for picking these Top 10 Sub Brokers in India is their sub-broker program.
The sub-broker, presently known as Authorised persons, is one of the most common business models that almost every broker has.
This is also one of the top models of most brokerage houses. Sub-broker program is offered best by Angel Broking, then IIFL has the best sub-broker program, and then Motilal Oswal.
They offer a wide variety of products to the sub-brokers to offer to 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
|3||Angel Broking DRA|
|7||Kotak Securities Partner|
|8||Choice Broking Partner|
|9||Nirmal Bang Partner|
|10||SMC Global Partner|
The next criterion for choosing the Top 10 Sub Broker Partners in India is the partner’s program. This is quite a unique program offered by some of the brokerage houses.
Here the scope of work is similar to the sub-broker program. However, the investment requirement is pretty low.
Discount brokers mainly offer this program; thus, the top 2 brokerage houses offering this program are Upstox and Zerodha, while the 3rd of us again Angel Broking.
5Paisa also has a partner program, and it ranks in the 4th position in this list. These 3 out of 4, except Angel Broking, offer only partners program.
List of Best Stock Broker Referral Program in India
|1||Angel Broking Refer & Earn|
|2||IIFL Referral Program|
|3||Kotak Securities Referral|
|4||Sharekhan Refer & Earn|
|5||5Paisa Referral Program|
|6||Zerodha Refer & Earn|
|7||Upstox Refer & Earn|
|8||Motilal Oswal Referral|
|9||Nuvama Referral Program|
|10||ICICI Direct Referral|
The 7th criterion for picking the Best Stock Broker Referral Program in India that we have used is the Referral program.
While the referral program is mainly for the clients and not the partners, it is one of the popular business models that all stock brokers have.
Angel Broking offers the best referral program per our rankings; then there is IIFL and Kotak Securities.
Apart from these 3, Sharekhan and 5 Paisa are in the 4th and 5th place, offering a lucrative referral program.
The referral program can also make people interested in opening an account with the brokerage houses without doing much.
One can earn vouchers, cash back, or other rewards by referring to the brokerage house.
List of Best Mutual Fund Distributor in India
|1||NJ Wealth MF Distributor|
|2||Zerodha MF Distributor|
|3||Upstox MF Distributor|
|4||Motilal Oswal MF Distributor|
|5||ICICI Direct MF Distributor|
|6||Sharekhan MF Distributor|
|7||Kotak Securities MF Distributor|
|8||IIFL MF Distributor|
|9||Nuvama MF Distributor|
|10||Angel Broking MF Distributor|
Stock brokers offer mutual funds, and thus our final criterion is Best Mutual Fund Distributor in India for picking the 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 but not for other business opportunities.
This is 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, and then comes ICICI Direct. So, if you are specifically looking for brokers who offer mutual funds, you can also look at this list.
What is Sub Broker Business?
Sub Broker is an individual or a firm that takes a franchisee of any SEBI-registered stockbroker. Their primary objective is to sell the products and services of the brokerage house.
For this, they earn a commission or share in their clientele’s revenue. There are different business models for sub-brokership or partnering with a stockbroker.
The sub broker and partner models are the two highly lucrative and popular models.
Though the sub-brokers have the same duties and get highly paid by the brokers, the scope of their work differs.
While a partner only gets clients & the rest is taken care of by the broking house, and the sub broker also provides all brokerage firm services.
We will get into each business model stock brokers offer in the next segment of the article.
Types of Stock Market Sub Broker Models
There are 5 types of Business Models provided by stock brokers –
Sub-Broker or Authorised Person
The first business model that is the most popular business model offered by these stock brokers is the sub-broker or authorised person.
As an Authorised person who is the new name for the sub-brokers, you have to identify prospective clients, pitch them about the brokerage house you are associated with, acquire them, and then maintain them.
However, the sub-brokers most important duty is to offer clients trading support. These are the broad responsibilities of a sub-broker.
A sub-broker earns between 50% and 70% of the revenue on average, and the investment he needs to make is around Rs.50,000 to Rs.2 lakhs.
However, these figures can change as per the brokerage house. The eligibility criteria for a sub-broker are 21 years of age at least.
They need to be a graduate (for most brokerage houses), have SEBI Registration and GST registration, and have previous experience working in stock broking firms or a similar firm.
Stock Market Partner Program
This is a unique program that some brokerage house offers. As Stock Market Partner, you must acquire, pitch, assist in account opening, and retain them.
However, as a partner, you do not have to offer extensive assistance for trading to the clients.
This is the main difference between a sub-broker and a partner of a stock broker. The revenue earning capacity varies between 30% and 50%, while minimal or no investment requirements exist.
You need to be a graduate and 21 years of age with prior experience in the stock broking industry to become a partner of the stock brokerage houses.
Stock Broker Master Franchise Program
Though Stock Broker Master Franchise business model is becoming quite rare, this is still the most lucrative business model.
Here you will get the opportunity to have the entire market of a region or jurisdiction, as there is no other sub-broker or franchise in that region of the same stockbroker.
This is why this model is called a Master Franchise. A master franchise can earn up to 80% of the revenue on average.
However, to purchase the master franchise rights, you need to pay a reasonable franchise fee which usually varies from Rs. 2 lakhs to Rs. 5 lakhs.
As a master franchise, you also need to invest heavily in infrastructure. You need to have office premises, with all amenities and facilities.
The eligibility criteria include 2-3 years of experience as a sub-broker or employee of stock brokerage houses where client acquisition and trading have been your major work.
Then you need to be SEBI registered and have a GST registration certificate.
Employee to Entrepreneur Program
This is quite a new business model that stock brokerage houses introduced. The Employee to Entrepreneur business model has been a boon for employees who want to do something for themselves.
Under this model, you can become a partner of the stockbroker if you have certain years of experience in the market.
As an employee-to-entrepreneur model, you do not have to invest any amount, which is a great plus. The share in the revenue that you can expect is between 20% and 40%.
The eligibility criteria include experience in the business, at least 21 years of age, GST registration, and NISM certifications.
Mutual Fund Distributor
Mutual funds have become highly popular amongst people, especially the younger generation. They are investing in mutual funds like never before.
Thus, as a Mutual Fund Distributor, you also stand a good chance of generating revenue. Many stock brokerage houses offer mutual funds with which you can partner as an IFA or mutual fund distributor to sell mutual fund products.
The average revenue or commission that you can expect is from 20% to 40% on mutual fund products.
The eligibility criteria for mutual fund distributors are Investment Advisor certification from SEBI or RIA certification and experience in the business.
Stock Market Referral Program
Referral Program or Stock Market Referral Program is one of the most common models. Almost all brokerage houses have this program.
However, it is not exactly a business model. It is mainly the clients who use the services of the brokerage houses.
So, if you are a client, and you refer the broker to any of your colleagues, partner, friend, family, or anyone, and that person opens an account with the brokerage house using your Referral Link, then you will get rewards.
The rewards also vary from one broker to another. While some brokerage houses offer amazon vouchers or similar vouchers, others offer cashback of brokerage, and others offer cash deposits into your trading account or bank account.
What is the Role of a Sub Broker?
As a Sub Broker, you will have all the duties to promote the business of the stockbroker you are associated with and generate revenue.
A role of a sub-broker is crucial to the stock broking firm as well because they need clients from different parts of the country, and to have branches and employees in all parts of the country can be expensive and time-consuming.
While on the other hand, a Stock Market Sub Broker can have their setup and a good network of clients and have the local connections to acquire clients easily against a share in the revenue.
So, the main duties of a sub-broker include the following –
- Identification of prospective clients who are willing to trade and invest and looking for a good stock broking firm
- Understanding the investment requirement of the prospect and then pitching the right product at the right time
- Acquiring the client and retaining them by offering the best possible services.
Benefits of Stock Broking Franchise Business
There are ample benefits to purchasing a Stock broking Franchise right or becoming Sub Broker Franchise or any kind of partner of a stock brokerage house.
The benefits are mentioned below –
- Firstly, you will be exposed to work with experts in the stock broking industry. As these top stock brokers are highly reputed, you can also share the brand value of these stock brokers. This, in turn, makes your job easy to pitch to clients about the brokerage house.
- Then, you can earn a commission as high as 80% of the revenue that is generated by your clientele. The more clients you add to your network, the more you can earn. There is no upper limit of earnings in this role.
- You can understand how business works and get hands-on experience with it. You can build your strong, loyal clientele network with the right kind of advice and support.
- Then comes the additional support that sub-brokers get from the stock brokers. There is marketing support for all kinds of marketing needs. From local advertisement to digital marketing, you will get additional support for promoting the business without paying anything from your pocket.
- Most brokerage houses provide great research and advisory support to the partners, especially the franchise holders and sub-brokers. This helps in offering the right advisory services to the client and thus retaining them for a long.
- With new-age trading, you can now work from anywhere remotely. So, the mandatory infrastructure requirements are also changing, saving a lot of your investment budget.
- You will have comprehensive back-office support to track all your clients, deals, trades, orders, revenue, earnings, and lead generation.
How to make money in Sub Broker Franchise business?
The revenue you can generate as Stock Broker Franchise, a sub-broker, or any other partner depends on the business model itself.
The revenue generation will be highest for a franchise holder (master franchise). Most stock brokers who offer master franchise rights provide between 70% and 80% of the revenue to the master franchise holder.
Conversely, the sub-brokers usually generate between 60% and 80%; however, in certain cases, it can be around 50%.
The Remisier model can offer up to 40% of the revenue share, while other models like IFA, IA, and others can get you around 20% of the revenue share.
While the business model is the primary determinant of the revenue share or commission rate, the amount of security deposit you are keeping or the stock broker asking for a Sub Broker Franchise also determines the share you will get out of the revenue.
Sub Broker Franchise Cost or Investment Required
Now that you know how much you can earn from the above paragraph let’s talk about how much you have to invest as a Sub Broker in Stock Market.
The sub broker franchise cost also depends on your business model and objective.
For the master franchise, the investment requirement is the highest as there is a franchise fee that you have to pay, and then there is an infrastructure requirement which is mandatory in the case of the master franchise.
The franchise fee varies from Rs.1 lakh to Rs.3 lakh while the infrastructure cost varies from Rs.2 Lakh to Rs.3 Lakh making the total cost average Rs. 3 lakhs to 5 lakhs for the master franchise.
For the sub-broker model, all brokerage houses usually ask for a security deposit ranging from Rs.50,000 to Rs.2 Lakhs.
At the same time, infrastructure cost varies from Rs.30,000 to Rs.1 Lakh on average. So, the total you will have to invest for a sub-brokership is around Rs.80,000 to Rs.3 Lakhs.
However, some firms like Upstox, 5Paisa, and Zerodha charge nominal or no security deposit, and no infrastructure is required as they are fully remote. However, the share in the revenue is also quite low compared to other brokerage houses.
For other business models like Remisier, certain brokers charge between Rs.10,000 – Rs.20,000, while some don’t charge anything.
Sub Broker Commission or Revenue Sharing
Your commission depends on your investment or security deposit and the business model you have opted for. The Sub Broker Commission usually varies from 20% to 80%.
The commission rate is decided by the stock broker under which you work and the business model.
However, you can increase your commission by keeping a higher security deposit if that is allowed with the brokerage house.
Eligibility Criteria to become a Stock Broking Partner
To become a Stock Broking Partner, there are certain basic criteria that you have to follow. However, the stringent criteria are mainly for the Sub Broker Partner and franchise holders.
Let’s first discuss the basic criteria and then dig into the more specific ones.
Basic Criteria for Partner Program
- The applicant who wants to become a partner of the stock broking house needs to be at least 21 years old.
- Then the applicant must be a graduate
- Experience in the stock broking industry will be a plus for every candidate across business models.
Criteria specific to Sub-brokers or Master Franchises
- The person needs to be a SEBI-registered sub-broker
- They need to clear NISM V, VII, VIII, and other similar certifications required for a license to work as a sub-broker in the stock market. The certification you need would depend on the products you want to sell. So, check which business model you want to opt for and which products you will sell under that model, and choose the certifications accordingly.
- GST registration is also mandatory for the franchisees and the sub-brokers. You need to provide your GST registration certificates along with the other documents.
- You will need to submit a work experience certificate and educational certificates
- NOC for the office premise and address proofs.
How to become a Sub Broker Partner? – Step by Step process
The process of applying for the Sub Broker Partner position is given below –
- First, you must decide on the stockbroker you want to associate with.
- The next step would be to visit their website and click on the ‘become a partner’ tab/ link or form.
- Once you get the application form, fill it in with all the details like your name, age, occupation, and business model you want to apply for.
- Then upload the documents which will be necessary for verification and KYC purpose
- Once the verification is over, the stockbroker will approve or reject the application.
- If the Stock Market Partner application gets approved, the stockbroker will contact you. Then you will have to make the investments. This will include the security deposit payment.
- Then, you will have to set up the required and mandatory infrastructures.
- Once everything is set, you are ready to start your operation, the stockbroker is satisfied with all the infrastructure set up, the franchise agreement will be drawn, and you can embark on the journey.
Success Mantra of Sub Broking Franchise Business
Becoming a Sub Broking Franchise or a Share Market Sub Broker may seem like a cakewalk, but to succeed in this field requires a lot of patience, communication skills, knowledge of the market, and, most importantly, great pitching skills.
If you want to know the success mantra for successful sub-brokers, they would tell you it’s hard work with many skills.
You need to excel in marketing skills, however, with actual knowledge of the products. Stocks/ securities are not any simple products where people would invest if they don’t want.
You need deep knowledge of what you are pitching to the clients. Then your observation skill would be the savior as you must observe what the client needs even if they don’t say it upfront.
Becoming a financial advisor or a sub-broker is tricky as you deal directly with money. You need to have patience. People will not give you their savings without understanding how safe their savings would be.
You need to create awareness of investing in securities that are lacking in this country. Then you need to create awareness amongst people about the stock broker you are working for. Then come the products and services.
However, perseverance and retaining clients are the most important factors in being a long-term player in this industry.
Just by acquiring clients, you cannot generate regular income and must retail them by providing the best services.
Reasons to fail in Stock Broking Franchise Business
You may be wondering if successfully running Stock Broking Franchise just requires passion, knowledge, and patience, then why do so many Share Market Partners fail to make it, isn’t it?
The answer is simple, and it is because of greed. Since becoming a share broker’s partner is quite easy as there are simple eligibility criteria and stock brokers’ commission is huge, many people want to become partners.
They enroll thinking they will get some clients and earn a huge commission, but there are no shortcuts.
To do it correctly, it would help if you excelled in communication, pitching, understanding markets, and much more.
You are bound to fail if you are going just by seeing the commission or the revenue share.
Drawbacks of Share Market Franchise
The drawbacks of a Share Market Franchise can be –
- High investment requirements for certain business models
- Low revenue sharing
- Stock brokers not offering good support to the sub-brokers
- The product range is not so wide.
These drawbacks are generated, and most stock brokers have none of these drawbacks.
You need to evaluate both pros and cons of the individual stockbrokers before getting into a contract with the stockbroker.
Best Sub Broker in India – Conclusion
So, now you know the criteria you need to check while picking up Best Sub Broker in India, you know how much you have to invest, your returns, different business models, and much more.
All this information would help you pick the right brokerage house to partner with. The revenue, and investments, depend heavily on the stock broker you choose.
So, make your pick wisely for long-term benefit.
FAQs on Best Sub Broker Franchise in India
Find various FAQs on Best Stock Broking Franchise in India –
Who is the best sub-broker?
In India, hundreds of stock brokers offer sub-brokership opportunities. We have shortlisted the ten Best Sub Brokers in India.
You can pick from these ten per your particular preferences and business goals.
What is a master franchise?
A master franchise is a business model which offers a monopoly of the partner in a specific region by not offering partnership opportunities to any other person 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 other people 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 stock broker can be anyone who joins the firm as a partner for selling the products and services of the firm against which they will earn a commission.
How much can I earn as a partner of a stockbroker?
The earning potential of a partner depends on the business model. If you opt for a master franchise, you can earn between 70% and 80% of the revenue.
If you are becoming sub-broker or authorised person, then you can earn around 60% to 80%, while the Remisier, IFAs, and employees to entrepreneurs earn around 40% to 50% or less.
Am I eligible to become a partner?
If you are above the age of 21 years, a graduate with basic market knowledge, you can easily be eligible.
However, you must complete certain certifications for a business like 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 no or low-investment sub-broker models; however, they also offer only 50% revenue share for sub-brokers.
However, business models like Remisiers, IFA, IA, 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.