Sub-broker Business Model

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IIFL Sub-Broker Business Models

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Benefits of Becoming a Franchisee with IIFL Securities


Sub-brokers make money through commissions that are earned from facilitating securities transactions for various clients. They typically receive a percentage of the brokerage fees charged by the main broker for each and every trade executed on behalf of clients recruited through the sub-broker.

Ans: You can join IIFL’s partner program which is the fastest-growing business model in the financial sector, to become an advisor for finance with IIFL.

Additionally, sub-brokers may earn income from advisory services, such as providing investment recommendations or market insights, for which they charge fees. Some sub-brokers may also receive incentives or bonuses from brokerage firms based on their performance in generating trading volumes or attracting new clients. Overall, sub-brokers generate revenue by serving as intermediaries in the buying and selling of securities within the financial markets.

To start a sub-broker business you need to get registered with SEBI as a sub-broker. Approach a broking firm such as IIFL Securities to become a sub-broker with them. They will guide you in how to get registered with SEBI. Once you get registered with SEBI as a sub-broker and get the sub-broker recognition from a broker, it is very easy to start your business.

Registration fees for sub-brokers in India can vary from Rs. 50,000 to Rs. 1 lakh. This registration fee is charged by the broker.

A sub-broker acts as an intermediary for a stockbroker, facilitating trades on behalf of clients but operating under the authority and infrastructure of the main broker. In contrast, a franchise in the financial context refers to a business arrangement where an individual or entity licenses the brand, products, and services of a larger financial firm to operate under their own brand name, often with some level of support and guidance.

While both involve representing a larger financial entity, the key difference lies in the level of independence and branding associated with each role.

To become a sub-broker, one must be intermediate pass. However, higher qualifications enhance the chances of success. Basic knowledge of financial markets, including Demat accounts and trading processes, is essential. Furthermore, proficiency in computer operations and software like Excel is required, along with expertise in online trading platforms.

Good communication skills are vital for client onboarding. Apart from that, applicants must be at least 21 years old and not trading exchange members. They should not be registered sub-brokers elsewhere or involved in any stock exchange default or pending criminal cases.