Table of Content
While beginning your investment journey in stock markets, you must remember that you cannot purchase or sell stocks and securities directly. You can trade in stock markets only with the help of an intermediary or a stockbroker/broking firm. These intermediaries are authorised to purchase and sell stocks and securities on your behalf via stock exchanges.
However, the numerous financial instruments have resulted in numerous professional roles to help investors invest effectively. As far as investments are concerned, a broker and an authorised partner are the most vital. However, as the roles of the two are different, investors should know the difference between them to make informed choices.
A broker acts as the licensed intermediary between the investor and the stock exchange. They are licensed to buy and sell securities like stocks, bonds, and mutual funds for their clients. Brokers are regulated more directly by authorities like SEBI and hold the certifications and licenses that help them to operate independently. But that’s not all because stock brokers often wear multiple hats. They –
Essentially, brokers are the ones you actually trust with your money, investments and long-term wealth. They often have a strong infrastructure (offices, new-age tools, in-house research teams, and full-time customer support). For all these reasons, the broker responsibilities are accompanied by a substantial amount of accountability, particularly when dealing with large transactions or managing high-net-worth clients.
Let’s now understand in detail the authorised partner meaning. An authorised partner is someone who works under a broker but doesn’t have the license to execute trades on a stock exchange directly. Instead, they connect clients to the broker and offer basic market-related guidance. Authorised partners act more like relationship managers or local representatives of a brokerage firm.
They’re especially helpful in regions where the brokerage firm doesn’t have a direct presence. So if someone in a small town wants to invest, it’s the authorised partner who explains the market basics, helps open a trading account, and ensures the client is onboarded into the broker’s system. But when it’s time to place an actual trade, that part is still handled by the broker.
In short, authorised partners are crucial links between brokers and retail investors. They help expand a broker’s reach while offering localized service and guidance.
Here’s a quick look at what separates one from the other:
Brokers get their license straight from SEBI (the official regulator). Authorised partners don’t. They have to work under a licensed broker.
Brokers can directly buy and sell stocks on the exchange, but authorised partners can’t. They pass on the order to the broker, who executes it.
Brokers earn full commission. Authorised partners get a commission from what the broker earns. So, more trades mean more income for both.
Brokers usually work at big companies or firms. Authorised partners often run smaller setups, sometimes even from home.
Authorised partners are more client-facing. They bring in customers, explain the critical concepts and rules, and guide them. Brokers handle the backend work and bigger decisions.
Brokers get all the advanced software, research tools, and dashboards. Authorised partners mostly use whatever access the broker shares.
Now that you’ve got the idea, let’s put the entire broker vs authorised partner (formerly known as sub broker) discussion in a tabular format.
| Feature/Aspect | Broker | Authorised Partner |
| License | Gets licensed directly by SEBI | Registered under a broker’s license |
| Trade Execution | Can place trades directly | Cannot trade directly; sends orders to a broker |
| Client Handling | Manages client portfolios & decisions | Brings in clients and offers basic guidance |
| Earnings | Earns full commission | Gets a share of the broker’s earnings |
| Work Environment | Works with large firms or institutions | May work from a small office or even at home |
| Access to Tools | Has full access to trading platforms & research | Limited access through the broker |
| Main Role | Handles trading, advice, and compliance | Focuses on building a client base and support |
| Compliance Responsibility | High – must follow SEBI rules directly | Moderate – follows rules under the broker |
Also, the difference between authorised partner and stock broker shows up in how much power they have. Stock brokers can act independently and are fully responsible for client portfolios. Authorised partners always work with a broker; they’re never completely on their own.
So, now you’ve got the whole picture. When people ask about the difference between broker and authorised partner (formerly known as sub broker), the answer is pretty simple. Both are part of the stock market world, but one holds the license and trades, and the other connects people to that service.
If you’re thinking about getting into the stock market as a profession, understanding these roles is key. Knowing the broker responsibilities and the authorised partner’s meaning helps you figure out where you want to start. Whether you want to go big and become a broker or you want to build strong client relationships as an authorised partner, now you know what path suits you better.
Become a Partner & Earn up
to 1 Lakh* per Month!
No, only brokers can trade directly. Authorised partners send the client’s order to the broker to place the trade.
Brokers usually earn more as they get full commission. Authorised partners earn a part of the broker’s commission.
Yes, but brokers register directly with SEBI. Authorised partners register under a broker’s license.
Not really. You need SEBI approval, infrastructure, and sometimes prior experience to get started as a broker.
Become a Partner & Earn up
to 1 Lakh* per Month!
