Difference between a Sub-broker and a Remisier

Here are some of the ways in which to let you understand the difference between a sub-broker and a remisier:

Brokerage firms require clients so they can function. To find new clients, brokerage firms hire individuals as independent agents. These are Remisiers. Hence, the main function of a remisier is to source new clients for a brokerage. Remisiers receive a percentage of the sales conducted as brokerage as earnings. Remisiers need to enlist themselves within a stock exchange to get hired by brokerage houses.

Remisier vs Sub-broker: Sub-Broker Meaning

A sub-broker, on the other hand, is not an independent agent but is still an employee of the brokerage firm. They act as extended branches of a brokerage. Their functions include a variety of things, from acquiring new clients for the brokerage to finalising trading on the client’s behalf. Their role also includes problem-solving and management of clients. A sub-broker functions similar to a broker but works as the middleman between two parties; the customer and the main broker. While a stockbroker is a middleman between an investor and the stock exchange, a sub-broker is the middleman between the stockbroker and the investor.

Hence, there are subtle differences between these two types of intermediaries, even in their definitions. However, the differences only magnify from this point onwards.

Remisier Vs Sub-Broker: Differences

When it comes to their office and business infrastructure, there exist differences between sub-brokers and remisiers. Sub-brokers typically require business infrastructure like an office space of their own. This may be a prerequisite of some brokerage firms when sub-brokers wish to work with them. For a remisier, there is no such need. Secondly, how both sub-brokers and remisiers earn is not very different. They both earn from commissions made on the sale of trades of the clients, which they booked with a stock brokerage.

Earnings A significant distinction between a remisier and a sub-broker is the amount they earn, with sub-brokers earning more than remisiers. A sub-broker has more responsibilities than a remisier when it comes to their clients and hence earns brokerage sharing of up to 60%. On the other hand, a remisier’s sole responsibility is to solicit clients for a stock brokerage. Role A sub-broker has a broader role as part of the stock brokerage. They have the responsibility of not only soliciting clients but also offering all other services of the brokerage. They take an active part in trading on behalf of the clients, aiding them in market research, and broadening their knowledge in general. A remisier does not possess these rights. This is why a sub-broker’s job requires much more time commitment, and involvement, and remains full-time. A remisier’s job is part-time in nature and allows for running other businesses on the side. Regulations

Licensing is also another factor. The licensing regulations between both these professions vary. When it comes to being a sub-broker, enlistment with the Securities and Exchange Board of India was mandatory, but this requirement has now changed. However, depending on the brokerage firm, there may be onboarding criteria for sub-brokers. On the other hand, a remisier is required to enlist with a stock exchange before they can begin soliciting clients for stock brokerage firms.

Remisier Vs Sub-Broker: Which One Is For Me?

Many stock brokerage firms offer a partner program where one can apply as a sub-broker or remisier. For instance, IIFL has a Partner’s Program you can use to onboard clients completely online. Before applying to become an IIFL sub-broker or an IIFL remisier, assess which option is right for you. Both professions come with their set of pros and cons. To know which is for you, you should look at how much involvement you want to have in your job and whether you wish to carry out other businesses alongside your position. If the latter is the case, being a remisier is more suited to your lifestyle.

How can you become a sub-broker and remisier with IIFL?

IIFL is one of the leading players in the sub-broker franchise industry, with more than a million accounts opened since its inception. The company provides execution, advisory, 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. You can visit IIFL’s website to join IIFL’s sub-broker and remisier program.

By choosing IIFL as a business partner, you also get to enjoy several other benefits such as a high revenue-sharing model, personal assistance, personalised branding, investor awareness programs, and access to a robust back-office infrastructure and risk management systems. As a sub-broker with IIFL, you also get access to an extensive product range that includes not only equities and mutual funds but also NCDs, bonds, and other insurance products. With more than 15,000 franchise partners and over 40 lakh customers, IIFL’s sub-broker program is without a doubt one of the best sub-broker franchise models in India.