A sub-broker is an individual or an organization that operates under a brokerage firm and provides all the services to its clients. The sub-brokers can also operate as authorized persons.
With every successful trading activity, the sub-broker receives a 50%-70% revenue sharing in the brokerage fees.
How to Become a Sub-Broker: A Step-by-Step Guide
Here is the step-by-step process to becoming a sub-broker –
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Qualification
Minimum of 18 years with 10+2 or HSC degree.
Candidate with a graduate degree is given preference.
Comprehensive understanding of financial markets and instruments.
Few other additional certificates/programs
Among others, certification programs like BCSM (BSE certification on securities markets), NISM courses, and NCFM (NSE Certification in Financial Markets) will also provide leverage to receive approval for the applicant.
Like any other application form, a certain set of identification and residency proof is required. For ID proof, you can submit an Aadhaar card, a PAN card, or a 10+2 diploma.
For address proof, go ahead with utility bills. And finally, a letter of recommendation from a CA with a few passport-sized photos will complete the paperwork requirement.
Choose the right brokerage company
They are choosing the right brokerage firm to partner with makes much difference. Please do a thorough groundwork in understanding their business model and the revenue sharing terms. Also, check the pricing structure and brokerage fees they charge their clients, as all these factors will also determine your income level.
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Verify the necessary resources (financial and physical)
Verify in advance all conditions set by the brokerage business. Check to see whether you require a certain office space.
Talk about the first investment as well. Last but not least, look into your broker’s commission schedule.
Share every document and pay the charge
Check-in for a follow-up call after submitting the papers to advance the conversation. Verify that the conditions are negotiated.
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Finally, you’ll need to pay the registration fee once your payment has been made.
Account Activation
The only thing to do is wait 5-7 days for account activation. Your broker may provide you and your staff training and instruction on trading platforms, customer service, and marketing strategies.
Benefits of the sub-broker business model
The sub-broker industry has gained attention recently since this franchising model offers a particular set of advantages:
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The main benefit of starting a sub-own broker’s trading company under brands like Angel One, Sharekhan, and many others is the ability to capitalize on brand recognition.
The broker house gives infrastructure. Thus, sub-brokers don’t need to invest in it to operate.
Business tracking and management systems with cutting-edge technology are available.
The most recent stock research reports are sent to sub-brokers, which aids them in advising customers on investments.
With little investment, they achieve high returns.
IIFL Franchise provides all the benefits provided here.
List of brokers with the best partnership models
Check out various parameters to find a good sub-broker provider –
THE BEST SUB BROKER COMMISSION
The top-ranked company on our list is Angel Broking, whose minimum revenue is 50% of gross sales and whose maximum revenue share is 70%.
Based on the client’s work, it also provides various revenue-sharing options, with a potential payout of up to 90%.
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HIGH SUB-BROKER REVENUE SHARE
With SHAREKHAN FRANCHISE, you may earn 50% of the income for the smallest investment, while sub-brokers who spend up to Rs. 100,000 can get up to 75% of the revenue.
BROADEST SELECTION OF PRODUCTS
ICICI Direct, Angel Broking, Kotak Securities, and Motilal Oswal are the four stock brokers that control this parameter. To their clients and sub-brokers, these brokers provide a wide variety of goods.
MINIMAL REQUIREMENT OF A SECURITY DEPOSIT
Angel Broking and Nirmal Bang are taking the top spot in this category once more. The next-placed trio is Sharekhan, SMC, and Karvy.
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Then IIFL on the third and Kotak Securities on the fourth. Fifth, the sixth, and seventh place are Edelweiss, ICICI Direct, and Motilal Oswal.
SUPERIOR TRADING PLATFORMS
A significant impact has been made in this field by Kotak Securities. The nation’s top trading platform, Keat pro X, is well-known.
Closely following in second place is Sharekhan’s Trade Tiger. Both of these trading platforms are favored by all sub-brokers and their clients.
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Conclusion
Regardless of how you approach the sub-broker industry, you can be sure that it is quite lucrative. This is due to the franchisor’s excellent organization and assistance.
When everything is used properly, you will generate much income and be the boss of your own company.
Heana Sharma: A rising talent, Heana boasts 2 years of versatile content writing experience across multiple niches. Her adaptable skills result in engaging and informative content that resonates with a wide spectrum of readers.
The International Monetary Fund (IMF) has increased India’s growth projection to 6.8 percent for this year, up by 0.3 percent from its previous update in January 2024, as stated in the World Economic Outlook (WEO) released on Tuesday.
The IMF predicts India’s growth will remain strong at 6.8 percent in 2024 and 6.5 percent in 2025, driven by robust domestic demand and a growing working-age population.
India is expected to outperform other large economies, with China following at 4.6 percent in 2024 and 4.1 percent in 2025. Global output growth is anticipated to continue at a steady pace of 3.2 percent in 2024 and 2025, consistent with the growth rate in 2023.
“The global economy remains remarkably resilient, with growth holding steady as inflation returns to target,” noted the IMF in its report. Despite previous predictions of a recession, the world economy has stayed afloat, thanks to the banking system’s resilience and stability in major emerging markets.
Regarding oil prices, the IMF foresees a 2.5 percent year-over-year decrease to an average of $78.60 per barrel in 2024, further falling to $67.50 by 2029. The organization considers the risks to this forecast as “balanced,” with potential price fluctuations due to geopolitical tensions and changes in supply and demand dynamics.
In conclusion, the IMF’s updated projections reflect a positive outlook for India’s economic growth, with the global economy showing resilience and stability despite existing challenges and uncertainties in the international landscape.
The latest UNCTAD report forecasts global economic growth at 2.6% in 2024, just above the recessionary threshold. India’s economy stands out with a projected expansion of 6.5% due to strong public investment and service sector growth, amidst a gloomy global scenario.
The report highlights weak economic activity in Europe, particularly in countries like Germany and Italy facing industrial slowdowns and fiscal constraints. The Americas are expected to experience a slowdown, with Argentina battling severe inflation and Brazil’s growth dampened by external pressures.
In Africa, growth is projected at 3.0%, slightly up from 2.9% in 2023. However, armed conflicts and climate impacts pose challenges. The continent’s largest economies, Nigeria, Egypt, and South Africa, are underperforming, affecting overall prospects. Oceania, especially Australia, is expected to see subdued growth extending into 2024.
Global merchandise trade fell by about 1% in 2023, diverging from overall economic growth due to trade tensions and subdued global demand. Disruptions in key shipping routes, such as the Panama Canal drought and Red Sea vessel attacks, have strained merchandise trade and increased shipping costs significantly, according to the report.
In a surprising turn of events, Tesla has laid off a significant number of employees, impacting several departments and high performers within the company. The decision, reportedly due to poor financial performance, saw some departments being gutted by 20 per cent.
According to reports, the layoffs affected more than 10 per cent or nearly 14,000 workers across the US, Europe, and China. The move was made to cut costs and increase productivity in preparation for the company’s next phase of growth. Many of the laid-off employees were high performers, adding to the shock of the news.
A Tesla manager expressed their dismay, stating, “I lost 20 per cent of my team, some really good players too.” In addition to the layoffs, two high-profile executives, including the VP of Public Policy and Business Development, and the SVP of Powertrain and Energy, have also resigned from the company.
Notably, Tesla has recently abandoned plans to develop a low-cost EV priced at around $25,000. With the company set to report its first-quarter earnings next week, the layoffs and executive departures raise questions about the future direction of one of the leading electric car manufacturers in the industry.
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