What is a Sub Broker- Definition and Benefits
A plethora of opportunities has been created for stock investors and traders in the financial industry due to the development of the stock market at a quick pace. The market began progressing with the industry’s growing demand for products and services. In today’s world, almost everything, including stock investing and trading, has become entirely digital owing to technological advancements, whether discount brokers or full-service brokers provide the facility of opening investment apps and start investing in the comfort of home.
Before this, there was a requirement for sub-brokers to contact and acquire customers. Since then, the concept of a sub-broker began. The demand for sub-brokers is high, even with share market apps. This article has brought detailed information on sub-brokers. So, let’s begin with it.
People interested in stock investing and trading know well about a broker, but many of us are unaware of what a sub-broker is. The operations of a sub-broker are the same as a broker, but the sub-broker acts as the middleman between two parties, a broker and an investor. At the same time, a stockbroker is a middle man between an investor and the stock exchange.
Here, the primary purpose of a sub-broker is to mediate between the broker and the client. While working for a stock broker, a sub-broker brings clients under the brokerage firm. In addition, the sub-broker helps clients invest and trade in stocks and other securities in the market.
A sub-broker will get some percentage from transactions in returns. The earnings of a sub-broker depend upon the no.of transactions they make. They will get a percentage in commission from the brokerage fees earned by the stockbroking firm on every transaction. Now you may wonder what is a brokerage fee? A brokerage fee refers to a fee, also known as a commission charged from a client by a stockbroking firm upon every transaction executed.
The sub-broker must register with SEBI (Securities and Exchange Board of India). SEBI (The Securities and Exchange Board of India) is the regulatory body for India’s securities and commodity market owned by the Ministry of Finance, Government of India. Although it became an executive body on 12 April 1988, it got statutory powers on 30 January 1992 according to the SEBI Act, 1992.
Knowledge is everything; you can do your work efficiently when you gain knowledge about the stock market. Knowledge of the stock market will enable you to serve your clients better. You will gain more knowledge when you become a sub-broker or a part of the sub-broker franchise.
Working with the brokerage firm you work for may enable you to provide customers with services that are more than investment tips and strategies. You, as a sub-broker, can provide clients with mutual fund distribution and loan options via the sub-broker franchise.
The investment amount may be low, as your stockbroking may pay significant expenses. Let’s say you, as a sub-broker, must pay an investment amount of INR 10,000 or above to begin your journey as a sub-broker.
IIFL Securities is one of India’s leading broking firms with more than two decades of existence in the financial industry. This company offers you the facility of becoming a sub-broker in India with its partner program, “Advisor Anytime Anywhere (AAA).”
Benefits of Becoming Sub Broker With IIFL Securities
Here are the following benefits to beginning a career as a sub-broker in India.
- Get helpful information about the stock market in India
- A variety of financial products and services in the industry
- There is no requirement for high investment
- Significant incentives
- Get training via webinars and seminars
Eligibility to Become a Sub Broker
The eligibility standards and qualifications for sub-brokers are based on the trading member you associate with. Mentioned below are several qualifications required to become a sub-broker.
- A minimum qualification of H.S.C
- 21 years of age or above
- Should not be a trading member of the alternate
- Should not be a registered sub-broker with another trading member
- Should not be a shareholder or associate of a registered sub-broker
- Should not be a defaulter in another stock trade.
How to Become a Sub Broker With IIFL Securities?
Here are the following ways to become a Sub Broker in India.
Step 1: Go to the website of IIFL Securities Partners.
Step 2: Submit your basic details such as your name, mobile number, email ID, and city
Step 3: Click on the button ‘Submit’
Step 4: Get the call from the representative
Step 5: Go through the Eligibility and Document Requirements
Step 6: Get Application Scrutiny and Approval
Step 7: Proceed for SEBI Registration
A sub-broker does the same work as a broker, being the intermediary between two parties: a broker and an investor. With the growing speed of the Indian stock market in terms of development, there are numerous opportunities for traders and investors to make profits.
With the emergence of many opportunities, becoming a sub-broker is in high demand; only you need to find the best brokerage firm to take you through. Hope this article helps guide you in becoming a sub-broker in India.