What is the sub-broker program of IIFL?

The stock market is a powerful concept that allows individuals to invest their savings in market instruments that effectively multiply wealth over time. The best part about investing in the stock market is that the wealth is hypothetical, and fluctuates wildly due to market forces. But the stock market has done more than just allow successful investors to enrich themselves; it has also led to the rise of numerous ancillary professions that facilitate these investments.

The rise in the importance of such services is the result of their services that provide financial guidance to investors and ensure they achieve their financial goals. As a result, this profession is being chosen by a majority of individuals for professional and income growth. If you are also interested in the profession, join a quality broker program. This blog is a guide on everything you need to know about a sub-broker and how you can join the IIFL sub-broker program.

Who Is a Sub-broker?

Since an individual cannot directly invest in stocks and shares, they need to do it via broking firms after opening a Demat and a trading account. The brokers are part of these firms and are authorised to trade and exchange shares on behalf of the individual or even an institution. However, there is a dwindling number of authorised brokers to acquire services from. To ensure that there is efficient match-making between prospective investors and traditional brokers, the class was created. The professional acts on behalf of a Trading Member of a Stock Exchange and brings in clients that eventually go on to invest via the broker, enhancing their returns from their brokerage fees.

What Is a Sub-broker Program?

The program is also known as a stock broking franchise. It requires two aspects: a registered professional and a stock broking house. The concept is to create business opportunities for those who cannot get a broking license as they are challenging and expensive. Through the program, a larger broking house gives its franchise to a smaller non-trading member brokerage house. Once the relationship is cemented through the required paperwork, the SEBI regulates the interaction between the two. Once the contract is completed, the professional has the right to start their own broking business as they wish.

What Is the Sub-broker Program of IIFL?

The business model is straightforward. The professional is required to build on their clientele and create new relationships to bring in new clients for the brokerage firm. The brokerage created by the clients is then split between the professional and the larger broking company. Contrary to what one may believe, such a professional is the one who earns the larger sum from the brokerage generated.

There are different kinds of relationships that can occur within the IIFL Sub-Broker Business Model The four main outcomes include:

Franchisee

This is a good option for those who are aiming to occupy a much larger space in equity markets. Entrepreneurs can create their own offices and hire staff to build on the services they offer to their clients as they grow. The advantages that come with this relationship are many:
  • Scope for business development and growth
  • Support provided by the broking firm while onboarding clients
  • Higher revenue sharing along with consistent revenue generation
  • Services and products can be catered as per the client’s needs
  • Support with marketing the business model both online and offline
  • State of the art risk management  

Marketing Associate

This is for individuals who can create a relationship with the brokerage firm and earn through the revenue generated via their association with the same. No capital investment is needed for this. Anyone with a background in financial services who aims to grow their business can opt for this program.

Similar to the franchisee option, this too has its own advantages:
  • No capital investment is needed
  • The offers are based on the clientele that one has
  • Support with clients, marketing, and risk management
  • Revenue generated is consistent.
  • The association made with the well-established brand identity of IIFL  

Employee to Entrepreneur

For those who are currently employed with a business may aspire to have their own business and shift from employee to entrepreneur. Anyone who has worked in the Capital market with a financial services background is eligible to opt for the IIFL sub-broker.

The advantages of the business model are as follows:
  • The employee can be their own boss as they grow
  • No capital investment is required
  • The business they wish to create can be moulded as per their expertise
  • Support with clients, marketing, risk management, and of course services that fit the needs of the clientele  

Remisier / Direct Sales Agent (DSA)

This business model is ideal for anyone who works as an independent individual. However, they continue to refer clients with respect to the brokerage as well as other investment options when they partner with IIFL. There are no eligibility criteria other than having a good connection to refer clients. The benefits of this business model are:
  • Every successful client recommendation earns the sales agent income
  • No capital investment is needed
  • IIFL offers a number of services for which clients can be referred, which creates a vast and varied clientele
 

Conclusion

 

The program for sub-brokers by IIFL offers immense scope for growth at both an individual and business level. Not only does it offer a variety of services to a wide clientele, but the image that IIFL has established for itself also provides a boost for those associated with them. Whether it is an individual or someone who wishes to expand their business within this sector, the IIFL partner program is beneficial in creating crucial relationships to build on their existing business. If you want to be included in such a program, visit IIFL’s website.

Ans: As these professionals are not trading members, they can not charge a brokerage fee. However, they are given a commission on the total transaction value done by their clients. There is no cap on the amount of commission earned.

Ans: IIFL has one of the most in-demand partner programs in the industry. We are one of the leading players in the broking industry, with more than a million accounts being opened since its inception. The company provides execution, guidance, 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.

Ans: The benefits are: high revenue sharing, personal assistance, personalised branding, investor awareness, cutting-edge technology and risk management systems.  

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