Sub-broking business in India

Sub-brokers are a link between investors and the capital market, so they are always in high demand in this bullish market. With a growing 10 crore investor base and rapid market momentum, there is a significant demand for sub-brokers who can help clients correctly.

Some of the best sub brokers in India are Motilal Oswal, Angel One, Sharekhan, IIFL Securities and Zerodha.

Who are sub-brokers, and what are they doing?

A sub-broker in India established a link between the main broking house and investors. They help investors access the market, provide extended investment advice, and help traders with the best possible road map.

However, sub-brokers work under the umbrella of a broking house. They have no access to direct trading on behalf of investors. So, they only work as facilitators to achieve the common goal.

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Critical responsibilities of sub-brokers for their clients

• Onboard new clients and assist them in the account opening process.
• Provide primary to advanced level support in investment and support them with customised investment advice.
• Educate the clients about the risk-reward goal of the market and help them with live market problems.
• Update active clients with rules and other KYC requirements.
• Independent research analysis or import exclusive data to help the clients in live market operations.

How much can you make as a sub-broker from the Indian market?

Here, the sky is unlimited, depending on your client base and market condition. A sub-broker can make between 20 per cent and 50 per cent of brokerage from each transaction. Though there is no fixed salary in the profit share model, it is not rare that a sub-broker with a solid client base makes Rs 1.5 Lakh to Rs 5 Lakh every month. It is a golden opportunity to make money without significant financial risk.

In addition, they have diversified income with robust client data such as selling other finance products (mutual fund distribution, credit sales, insurance, etc).

How can you become a sub-broker in the Indian capital market?

Anyone who is 21+ and has a zeal for money can join a business that educates clients through better research and analysis. This business does not require a huge investment, so it is affordable for almost every pocket.

First, you have to choose a reputed brokerage firm. A reputed firm gives you the brand name to help you with new client acquisition. However, their brokerage commission structure may vary from new startups. In general, new players offer you more share than old players. So, you have to decide based on their market reputation.

A minimum graduation degree with a basic finance concept can boost your market presence. Now, prepare all documents, including address proof, and submit them. However, it may require a processing fee. After the document verification, you need a SEBI registration fee for a unique SEBI registration certificate.

Advantages of becoming a sub-broker

There are several benefits to this sub-broking business. You can earn by helping clients achieve their market goals without huge capital or infrastructure costs.

• This sub-broker business is an excellent opportunity if you have less financial commitment. Its primary advantage is low initial investment rather than setting up a full-fledged fancy office.
• Sub brokers get full support from their brokerage house for development. For example, sub-brokers can use their trading platforms, research tools, and back-office support.
• Earn a hefty commission without a significant capital risk. As the volume of trading and client base increases, so do earnings.
• Work independently way, and you become your own boss. However, it is good to be active during market hours to help your clients.
• Brokerage houses provide specific training, support, and related materials.

Some additional tips to become a successful sub-broker

You can use these additional tips to enjoy the business without a hiccup.

By collecting clients' data or ' sponsored' pages on social media, you must first focus on networking with potential products. It is good to have evidence to justify your promise to new clients; testimonials are always helpful in building trust between two parties. To get like-minded people, always attend seminars and share your contact data with them.

Your goal now is client retention after client acquisition. Having a solid and active client base rather than an inactive bunch of clients generated by aggressive sales is crucial. Also, it is vital to stay updated in this volatile world.

Conclusion

Daily research and analysis are not altered according to the market's mood in this sub-broker business. Always follow industry news, magazines, and the output of their shareholder meetings, etc. You succeed in this field with proper market knowledge, research, strong network building, learning, and excellent customer service.

Thus, understanding the market dynamics is a driving force to push your sub-broking business to the next level.

(This article is part of IndiaDotCom Pvt Lt’s sponsored feature, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility or liability for any errors or omissions in the content of the article.)