How Does Sub Broker Franchise Work?
Being a sub-broker franchise is not a simple task where only calls and promotional emails are handled. The role of a sub-broker is not limited to offering the best stock offers to clients, it requires in reality an appetite for risk and unpredictability. Ask what are all the threats faced by a sub-broker? Some of the common tensions for any person who chooses to get a sub-broker certification are the possibility of falling share prices, increased inflation in the region, and growing skepticism. In addition, the recent scenario shows clearly how difficult it will be for a sub-broker in the coming years, particularly given that the majority of stock traders now purchase and sell their shares on-line rather than seek the assistance of the sub-broker franchise.
What's a Sub Broker's Role?
The sub broking franchise is one of the ways to allocate products and services to its clients locally through this franchise chain. This helps clients in that field by offering all the product and service details in all segments such as equity, currency, commodity, future and options, etc. A "sub broker" is similar to an agent that sets the investors and is not a stock exchange trading participant but assists them in dealing with shares on their behalf. The sub-broker franchise is thus a three-party agreement between the stockbroker, the sub-broker and the client.
Note that a vast network of market traders, shareholders and many more individuals are seen in the capital market. Therefore, it is important for this group to have proper knowledge as well as qualification.
Key Benefits Of Being a Sub Broker Franchise
Share of High Sales
The sub broker retains a high percentage of the client-generated brokerage; the franchiser gets a low percentage of the brokerage.
A sub broker franchise can be started with a minimum investment sum of Rs.10,000, only a security deposit is charged to the franchiser to cover all the franchiser's expenses. The franchiser doesn't even request a minimum deposit in some situations.
Support from Marketing & Training
As a broad network, the franchiser also supports the sub broker with all kinds of marketing assistance, such as supplying posters, flyers, and branch hoardings. They also arrange workshops to educate their broker partners on various aspects of the business.
Advisory Support Program
Some franchiser also provide their sub brokers with guidance, inventory tips & suggestions to help benefit their clients & increase sales.
Item, Service & Deals
The sub broker can also use any new products, services & deals introduced by the franchiser. This allows the sub broker to continue to involve their clients with new services.
What Are The Conditions To Become a Sub-Broker?
Should be 12th pass at minimum, but ideally a person should be holder of a graduation degree.
Should have knowledge and understanding of capital markets and should have expertise in the management of transactions relevant to general finance.
Simple knowledge of computers is important.
Strong communication skills to convince the client to do business.
Recent information related to financial economic policy and other related subjects that could impact the stock market should be revised.
The basic knowledge of equity, commodities, mutual funds, currencies, etc. is a must.
In order to take care of his franchise office and staff, the person should also have good managerial abilities.
Read more at Sub-broker Eligibility Criteria and Qualification
The sub brokerage franchises in India are rising day by day since many people have recognized that if you are good with numbers then, you may have a great opportunity to make money. You need entrepreneurial skills that are very relevant for business growth and the achievement of goals on a monthly basis, to become a franchise. Different organisations use their efforts, experience, skills and resources to get the company through sub broker franchises such as IIFL franchise. Therefore, the franchisee shall be allowed to market its goods and services in compliance with the brand or trademark model.