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 to run a brokerage business.
Currently in India, there exist approximately 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 them 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 grow.
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Requirements to Run an Authorised Person Business
Running an Authorised Person (AP) business requires the right mix of qualifications, documentation and practical readiness. These requirements ensure you can operate smoothly, follow regulations and offer reliable services to your clients. Here is a clear and simple breakdown.
- You must be at least 18 years old and legally eligible to run a brokerage business.
- A minimum educational qualification, usually completion of 10+2, is required.
- You should have a clean financial record with no history of fraud or default.
- Basic knowledge of the stock market and trading operations is essential.
- You must submit identity proof, address proof and recent photographs.
- A valid PAN card and bank account in your name are mandatory.
- You need to complete all regulatory forms and agreements with the broker.
- Office space with basic infrastructure, such as a computer and internet connection, is required.
- You must follow all SEBI and exchange guidelines applicable to Authorised Persons.
- Some brokers may require completion of mandatory training or certification.
- You must maintain proper records of client transactions and communication.
- Consistent adherence to compliance rules and ethical practices is essential for long-term success.
How to Start a Sub Broker Business
Starting a sub-broker business becomes easier when you understand the market, know your strengths and choose the right partner. With simple investments and the right support system, you can build a franchise that grows steadily. Here is a clear breakdown of how to start a sub-broker business:
Identify Your Market Expertise
- Test your knowledge with friends and family before taking the next step.
- Once confident, formalise your role by registering as a sub-broker.
- Partnering with us allows you to use all our resources and support.
Gain Access to Company Facilities
- You get full access to our tools, platforms and research material.
- These benefits extend to your clients as long as you stay a franchisee.
- The required start-up investment is simple and manageable.
Use Knowledge as Your Strongest Asset
- In the stock market, knowledge directly impacts your success.
- You can use our expertise and training at no cost.
- Share this knowledge freely with your employees to grow sub-broker franchise clients.
Build an Aligned Business Model
- Our independent advisor model ensures our goals match yours.
- When you grow, we grow with you.
- This alignment creates long-term trust and stability.
Explore Unlimited Earning Potential
- Your income depends on your ability to attract clients and increase trades.
- There is no upper limit to how much you can earn.
- Consistent effort can create strong and long-lasting revenue.
Seek Continuous Company Support
- We are motivated to give you better tools and opportunities.
- You get high-quality services at no extra cost.
- This helps you offer more value to your clients and stand out in the market.
How To Grow a Sub Broker Business in India
Growing a sub-broker business is all about expanding your client network, increasing trades and delivering real value. As your clients earn more, your commissions rise as well. With the right approach, you can build a strong franchise that benefits both you and the main broker. Below are the key ways for those wondering how to grow a sub-broker business in India:
Understand the Earning Structure
- Your earnings rise as your number of clients and trades increases.
- More successful trades mean higher commissions for you.
- Consistent cash flow may lead to better incentives from the broker.
- Both you and the broker benefit from your growing client base.
- It creates a win–win setup for long-term growth.
Build a Database
- Start with people who already trust you.
- Add friends, family and relatives who may be open to investing.
- Use this base to gain early traction for your franchise.
- A strong database helps create momentum.
Keep Clients Engaged
- Stay in touch with your clients regularly.
- Share market updates, trading ideas and simple guidance.
- Encourage them to trade consistently, based on their goals.
- The more they trade, the more they earn.
- Active clients directly support your business growth.
Strengthen Client Relationships
- Offer clear advice in simple language.
- Be honest about risks and rewards.
- Build trust through transparency and good service.
- Strong relationships turn clients into long-term partners.
Focus on Performance
- Analyse trades and improve your strategies.
- Aim to maximise client profits safely.
- Better performance leads to more referrals.
- Growth becomes easier when your results speak for themselves.
Leverage Broker Support
- Use research, tools and guidance provided by the broker.
- These resources help you make smarter decisions.
- Better tools mean better service for your clients.
- Strong support boosts both confidence and performance.
Encourage Consistent Trading
- Remind clients about long-term wealth creation.
- Help them stay disciplined during market ups and downs.
- Consistent trading activity boosts earnings for both sides.
- This ensures steady growth for your franchise.
Conclusion
Being a sub-broker comes with a whole range of benefits. With a fraction of a stockbroker’s investment amount, you can set up a sub-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 are, the bigger you can grow your stock market franchise as a sub-broker. You can consider partnering with experienced and reputable franchises like IIFL Partners so that you can use their expertise to your benefit.
