How To Run A Sub-broker Business?
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. But the stock market has also opened up opportunities for many others as well who may not be direct investors. One of these includes being a stock sub broker.
What Is a Sub Broker?
Currently in India, there exist an approximated 50 or so brokers. These are officially listed members of the stock exchange. Part of the stock market franchise, these brokers enable investors to make and take trades on the stock market in exchange for a brokerage fee. It is evident from the fact that there are a mere 50 or so brokers in the entire country, that getting a license to be a broker and being instituted as a trading partner of the stock exchange comes with both limited opportunity and heavy expenses.
Therefore, in order to fill the gap between a passion for the market and limited funds, the role of a stock sub broker and sub broker franchise was created. A stock sub broker takes the resources provided by the broker such as investment amounts, tips, strategies and various other facilities, and uses it to help his or her clients.
Therefore, even though a stock sub broker plays the function of bringing clients to the broker, their stock sub broker franchise can potentially provide them with handsome profit as their experience, business and clientele grows.
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How To Start a Sub Broker Business.
Now that you have identified your expertise in the stock market and have tried and tested it on friends and family, it is time to make it official. You can enlist with us as a sub broker and avail of all the facilities provided by our company and extend them to clients part of your sub stock broker franchise 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 us, all of our knowledge is at your disposal free of cost, to employees as you wish. Our business model for independent advisors ensures that our interests are aligned. What does this mean? A couple things.
The first is that this means that the amount of money you earn as a stock sub broker is only limited to your ability to bring in clientele and increase trades. Other than that, the possibilities are endless.
The second is that this means that we as a company are incentivized to provide you with better opportunities and services to provide your clients with, at no extra cost.
How To Grow a Sub Broker Business.
As a stock sub broker, you are essentially sharing your wealth of knowledge with your clients in order to increase and grow your combined wealth. Despite the fact that a sub stock broker franchise is run by the broker, a stock sub broker can still establish a thriving business of their own, one through which they make considerable earnings. Needless to say, these earnings increase as you increase your clients and trades. It is a given that the more successful trades you take and more money you make your clients, the more commission you will earn. However, as mentioned earlier, stock brokers are keen on incentivizing their stock sub brokers. Due to this, if you establish consistent and increased cash flows, the broker is likely to offer you a bigger piece of the pie. This incentivizes you as a stock broker as you earn more per trade, and benefits the broker as you bring more clients through the broker, allowing them to earn a brokerage as well. It is in essence, a win - win situation.
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 include family, relatives as well as friends.
Another trick is to ensure you keep your clients engaged. Even after having invested in your sub stock broker and stock market franchise, the more they trade the more they will earn and needless to say, the better your business will do.
Being a sub broker comes with a whole range of benefits. With a fraction of a stock broker investment amount, you can set up a sub stock broker franchise 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 is, the bigger you can grow your stock market franchise as a sub broker. You can consider partnering with experienced and reputed franchises like IIFL Partners so that you can use their expertise to your benefit.