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This content is for informational purposes only and is not intended to provide financial advice.
With the evolution of technology and the regulations wall coming down slowly, the road toward becoming a sub-broker has become broader.
We can observe that many stock market enthusiasts, financial market employees, and traders with years of experience are taking on the role of sub-brokers.
These individuals come together with the top stock broker companies where they realize their potential and the company.
Becoming a sub-broker under the supervision of a well-established company offers immense opportunities to the individual.
They get high-earning prospects; they do not have to knock on every door for clients, and so many other advantages.
The process to Start Sub Broking Business
Now, if you also want to become a sub-broker, here’s what you have to keep in mind –
Picking the right Sub Broker Franchise
The Best Sub Broker Franchise is one that has a huge brand presence and provides very decent revenue sharing & client acquisition very easy.
You must start working under a stock broker because it has one appealing feature or their representative are sugar coating everything.
You have to analyze the insides of the entity, its reputation in the market, years of experience, and, for most, its availability when you need assistance.
Choosing the right model
Now, many of the stock brokers have brought multiple types of business partner models for the aspirants.
Therefore, you must study every model type and decide on the most prompt model. There are models like:
- Master Franchise
- Sub-Broker/ Authorized Person
- Employee to Entrepreneur
- Remisier
- Referral Program
IIFL Sub Broker program provides multiple business models and very decent revenue sharing.
Revenue Sharing
Of course, the fundamental motivation behind starting a business is to earn well for oneself and the family. Different stock brokers have different revenue-sharing models.
Some share in the form of fixed percentages whereas some prefer fixed sum of amount. So, gather all the facts and understand the kind of revenue sharing.
Eligibility
Stock brokers want that the candidates who join their team as sub-broker have well-versed knowledge of the stock market and know how to handle clients; hence they put forth some eligibility criteria, and only when you pass through these can you gear up your sub-broking journey.
Now, let’s detail these eligibility criteria which we just mentioned. For most of the stock brokers, the following described eligibilities remain the same, and in case there are some additional parameters, they will specifically bring them to your attention.
Eligibility Criterion for Sub Broker Business
Below, you will find the list of eligibilities:
Citizenship
Every aspiring person looking to start their franchise with an Indian Stock Broking company shall be an Indian citizen.
Age
As we know, any minority person is not eligible to undertake an agreement; therefore, every sub-broker is necessarily required to have attained the age of majority. In India, the age of the majority is 18 years, so the candidate shall be 18 years or above to start their career as a sub-broker.
Educational Qualifications
Now, this parameter is different for stock brokers. For setting educational qualification parameters, the stock brokers have taken their liberty and applied the same.
Some stock brokers accept applications from individuals who have passed their higher education, like 10+2. Still, certain brokers mandatorily require their sub-brokers to have a graduation degree in any field, whether it is Science, Arts, Commerce, etc.
Experience
Experience speaks of everything in the Stock market. The experience makes a person a professional trader because this market is highly dynamic and changes in seconds.
All stock brokers require their sub-brokers to have some experience in the financial market as a sub-broker, agent, banking, financial market, or in any other capacity. The higher your experience, the more your chances of success will be.
NISM Certificate
NISM, or National Institute of Securities Market, is a certification program where you can examine your financial market knowledge.
All the stock brokers require their sub-brokers to have cleared this exam and have obtained the certificate. This exam tests your basic knowledge and understanding of the stock market.
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