Financial Remisier: Meaning and Advantages
There are a number of terms and designations involved in the process of trading and investing in the share market. Sometimes, these can get confusing for new investors. A lot of people are involved in the process such as brokers, consultants, etc. Today, let’s have a look at one of these important people — a financial remisier and how even you can become one to earn some money.
What Is a Financial Remisier?
A financial remisier is basically an agent of a broking firm, but is different from a sub broker. Remisiers are often confused with sub brokers. A remisier’s job is to get stockbroking company clients who will invest regularly through them. Remisiers work individually to attract new business for a broker. Brokers value remisiers for not only bringing in new clients, but also for acting as credit controllers who set trading limits for their clients in advisory roles.
A remisier earns a share of the brokerage from each client who invests through the broker. Remisiers must be registered with a stock exchange. Remisiers are different from sub-brokers, and their job is smaller and simpler in scope.
How Is a Remisier Different From a Sub Broker Or Financial Consultant Or Investment Consultant?
A sub broker performs all the tasks that a remisier does, and some more additional tasks as well. A sub broker is like a franchise of the stockbroking company. They could have their own separate office and operations while using the broker’s brand name. Plus, a sub broker issues contract notes and confirmation notes on behalf of their clients. They can take up the entire responsibility of the trade for clients, which remisiers cannot.
A financial consultant or investment consultant, also known as financial planning consultant, looks at your entire portfolio and advises clients on how to allocate your assets and investments. Financial planning consultants can also advise clients on specific areas such as tax saving and insurance.
As opposed to these, the job of a remisier is narrower in scope. The essential job of a remisier is to introduce their clients/contacts to the stockbroker. It is a great option for anyone to earn some money on the side. Nowadays, remisiers have started widening the scope of their services and conducting the duties of financial planning consultants as well.
Also Read, Difference Between A Sub-Broker And A Remisier
Can You Become a Financial Remisier?
Yes. On paper, anyone with a little time to spare and no capital investment can become a remisier for a stockbroker and earn some significant side income. Of course, you will also need to have a network of contacts who you can approach. Plus, you will need a good knowledge base in investing if you’re planning to become a financial consultant as well.
Advantages Of a Financial Remisier
There are plenty of advantages to becoming a financial remisier. Here are the major ones:
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Convenience And Ease:Â Doing the job of a remisier is easy, convenient, and simple. Even more so when you have a strong network of contacts. Once you put them through to the stockbroker, your job is mostly done. You then just have to keep track of the earnings you make when they make investments.
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Less Responsibility: You will be working for the stockbroker but you won’t exactly represent them. The actual responsibility of the deal lies with the stockbroker itself. You will just be an intermediary. It is more of an outsider role. Hence, if there are complications in the trade, you will not be involved.
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Less Time-consuming: As compared to a sub-broker or full-time investment consultant, your job will be much less time-consuming. You don’t need the same amount of research or interactions with clients to earn your rightful money. You can pursue it as a side business while putting your major focus on your actual full-time job.
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No Investment:Â You need not invest in an office for becoming a remisier. You can carry out the practice on your own with your network in any way you and your clients find convenient. The only thing that you have to invest is a little bit of your free time.
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Scope For Expansion:Â You can also expand your services and get into financial consulting or investment consulting along with your remisier activity. You need not stick to the role, there are a lot of remisiers these days who have also started providing advisory assistance to their clients as financial planning consultants.
Conclusion
There are scores of benefits to pursuing an additional career as a remisier. If you become an IIFL remisier, the advantages will be many and your investments will be minimal. So, don’t waste time in starting your journey as a remisier. Put your network of friends, acquaintances, and contacts to good use and drive them towards investing. All of this, while earning a significant side income.