The stock market brings stars to the eyes of many young individuals, as it allows one to grow wealth exponentially and leverage small investments for significant gains. All one needs to do, in principle, is make the right investments and trade at the right time. However, making the right investment decision is one of the most complex undertakings as it requires extensive financial knowledge along with the analysis of affecting market factors. Hence, investors look towards sub-brokers to seek assistance. It has also opened up opportunities for individuals who may not be direct investors to start a sub-broker business and earn through brokerage and commissions.
What Is a Sub Broker?
Sub-brokers are officially listed members of the stock exchange and enable investors to make and take trades on the stock market in exchange for a brokerage fee. A stock Sub-broker takes the resources provided by the broker, such as investment amounts, tips, strategies and various other facilities, and uses them to help their clients.
Therefore, even though a stock sub-broker plays the function of bringing clients to the broker, the business they run can potentially provide them with handsome profit as their experience, business, and clientele grow. All they have to ensure is to know how to run a sub-broker business.
How To Start and Run a Sub Broker Business
With such a business comes the idea of assisting people in making successful stock market investments. Before you start a sub-broker business in India, you can test your knowledge of the people close to you. Now that you have identified your expertise in the stock market and have tried and tested it on friends and family, you can learn about starting such a business. To start a sub-broker business in the stock market, you can enlist with IIFL as a sub-broker and avail of all the facilities provided by our company and extend them to clients part of your business as long as you remain a franchisee, with nothing but simple start-up investments.
With any job in the stock market, be it as an investor, broker, stock sub-broker or adviser, knowledge is wealth. And by partnering with IIFL, all of its knowledge and resources are at your disposal free of cost to employees as you wish. IIFL’s sub-broker business model for independent advisors ensures that the business is sub-broker-oriented.
What does this mean? A couple of things.
The amount of money you earn as a stock sub-broker after starting the business is only limited to your ability to bring in clientele and increase trades. Other than that, the possibilities are endless.
IIFL as a company are incentivised to provide you with better opportunities and services so that you can cater to your clients effectively.
How To Grow a Sub-Broker Business
After starting the stock sub-broker business, you, as a stock sub-broker, are essentially sharing your wealth of knowledge with your clients in order to increase and grow your combined wealth. Despite the fact that the broker runs a sub-stockbroker franchise, a stock sub-broker can still establish a thriving business of their own, one through which they make considerable earnings. These earnings increase as you increase your clients and trades. It is a given that the more successful trades you take and the more money you make your clients, the more commission you will earn.
However, stock brokers are keen on incentivising their stock sub-brokers. Due to this, if you establish consistent and increased cash flows, the broker is likely to offer you better commissions.
There are a couple of ways in which one can grow their stock sub-broker franchise.
First, they establish what is known as a Natural Database. This is a list of people who are likely to invest in your business in the beginning and includes family, relatives, and friends.
Another trick is to ensure you keep your clients engaged. Even after having invested in your sub-stockbroker and stock market franchise, the more they trade, the more they will earn, and the better your business will do.
Starting a stock market sub-broker business comes with a whole range of benefits. With a fraction of a stock broker investment amount, you can set up a sub-broker business and turn your wealth of knowledge into tangible wealth. As interest in the stock market grows, so does the clientele base. The better your trading history and reputation, the bigger your business can grow. You can consider partnering with experienced and reputed franchises like IIFL Partners so that you can use their expertise to your benefit.
Ans: The sub-broker provides financial assistance to clients to make informed investments in various financial instruments.
Ans: You can start such a business with IIFL by joining IIFL’s industry-leading partner program by visiting IIFL’s website.
Ans: IIFL has one of the most in-demand sub-broker programs in the industry. IIFL is one of the leading players in the broking industry, with more than a million accounts being opened since its inception. The company provides execution, guidance, and research service across products like equity, F&O, Commodity & Currency, and Mutual Funds. IIFL is also one of the top distributors of AIF, PMS and Mutual Funds.