How Much A Sub-broker Earns in India?
A sub broker helps investors transact securities on the exchanges such as the BSE or NSE. If you are a sub broker or deal with one, it is important to remember that the sub broker offers services to clients and works under a broker. A sub broker functions as a franchise of a broker and their earning capacity depends on a range of factors, including client base and the partnering broker.
If you are wondering about the role of a sub broker franchise and what kind of income you can earn as one, read on.
While brokers are stock exchange members and work independently, a sub broker is a middle person between the broker and the client. So, if you were to take up a sub broker franchise, your income would depend on the pricing model of the broker.
The brokerage could have a percentage-based model. For example, if your client buys 10 shares of a company and each share costs Rs 100, the transaction cost is Rs 10 x 100 = Rs 1,000. So, the brokerage could charge 0.5 per cent of it as the fee, which is Rs 5. Your sub broker income could then be a percentage of this amount. The greater your transactions, the more your earnings per month. This means it helps to have a wide client base apart from a good partner/broker.
The brokerage could also charge a lump sum for a transaction. The broker could set a certain fee irrespective of the transaction being taken up.
The brokerage could have a combination of the lump sum and the percentage-based model, wherein there is a set fee for a specific transaction amount and then a percentage charged once that level is crossed.
In all these scenarios, the sub broker income is a percentage of the total brokerage fee. This percentage could vary from brokerage to brokerage and can go up to 60 per cent of the brokerage fees.
It is you as a sub broker who does all the hard work, involving researching companies, tracking performance of stocks and taking on the burden of the client’s investments. This is why the percentage of sub broker income can go up to 60 per cent of the brokerage fee, if you choose the ideal broker.
However, it is important to note that the sub broker cannot charge a client directly and can only earn from the broker. Also, as a sub broker, you may need to set apart an initial investment in terms of an office space and staff so as to provide a seamless customer experience to your clients.
Benefits of partnering with the right broker
If you are a sub broker franchise, your income depends on the broker you choose to work with. Here are factors that affect sub broker income if you are opting to become a franchise.
Choosing the apt broker matters a great deal because as a sub broker, your income depends on the earnings of the broker.
If you are looking at the right partner, it is time you looked at IIFL Securities to partner and grow as a sub broker. You will get an IIFL sub broker login and you can benefit from a high revenue sharing model and an efficient tech platform.
A good brokerage partner helps you with a secure client shifting and migration process. This is useful because as a sub broker you may already have a wide database of existing clients and you may want to shift them to the current platform. Get yourself an IIFL sub broker login and this process becomes seamless.
By choosing the right partner, you will also have access to infrastructure and risk management, branding and marketing support.
Also read How To Start Sub-Broker Firm In India?
Work On Your Strengths And Abilities
Your income as a sub broker also depends on the product range you offer. If you choose the right partner and open a franchise, you will be able to offer a range of products to suit different clients. These could be equities, currencies, IPOs, commodities or mutual funds. The greater your range, the wider your clientele and the higher your opportunities for a substantial income.
As a sub broker, your success and income depend largely on building your client network, constantly following up with them and helping them with tips and advice on their investment choices.
Therefore, building your knowledge of the market is very important and is a great investment. Your ability to offer value, trust and efficient services also affect your income.
A sub broker can earn nearly 60 per cent of the income a broker makes on any given transaction provided it is the right broker. The more established the broker and their system, the better it is for the sub broker. Choosing the right partner is at the heart of earning a good sub broker income. An IIFL sub broker login is all you need to partner with a broker who offers excellent tech support, infrastructure and secure client management and migration processes. With that, you can attract a wider client base and boost your income.