HDFC has very good brand value in the financial sector. People trust it and feel quite confident when it comes to making an investment in the HDFC Securities franchise business. The headquarters of this full-service stockbroker is located in Mumbai.
There are around 250 HDFC securities sub-broker offices, which is somewhat less with respect to the number of offline offices of the other full-service stockbrokers in the industry. With HDFC securities you can avail the advantage of a 3 in 1 account. It combines the trading account of HDFC Securities with your HDFC bank account as well as the Demat account.
This enables the easy movement of shares or funds from the bank or the Demat account for successfully completing the transactions. Not only this, you get the benefit of ensuring the completion of the process in much less time. The electronic mode of the placement of orders makes the proceeds available to you quickly too.
When you become an HDFC Securities franchise or a sub-broker, you can be sure about everything being managed in a planned manner. They send you email notifications for confirmation purpose, as soon as your order gets executed.
In case you intend to be a part of the HDFC Securities’ Franchise business model, you can definitely go for it as you will be able to grow in the business by leveraging the brand reputation that it has established for many years.
HDFC Securities Franchise Partnership Models:
HDFC securities provide its customers with a single partnership model named HDFC Securities sub-broker. If you enter into this partnership model, you can provide a number of financial products to your client base in which they can make the investments and do trading.
This includes insurance, Derivatives, mutual funds, bonds, currency, ETFs, equity and fixed deposits.
Like mentioned above, this business model with HDFC Securities has its own set of benefits that can help you for easier and quicker client acquisition.
But first, let’s talk about the related financials to the business:
HDFC Securities Franchise Initial Costing
A security deposit of ₹2 Lakh is needed in the beginning in order to kick start the process. This amount is refundable in nature. Besides this, other charges which you have to pay are the registration charges, charges for certification etc.
Once you are done with this, you need to rent a space if you don’t own one, for setting up your office in your region. In order to provide full support to the customers, for providing assistance in the operations and other purposes, you need to hire some employees.
This will ensure that your business operations are carried out in a hassle-free manner.
HDFC Securities Franchise Revenue Sharing
In any brokerage business, the revenue share you get is a part of the total brokerage that your client base generates. The amount of revenue generated by such a business depends directly on the performance of your client base.
In case of HDFC Securities sub-broker, you can expect a revenue sharing of 50%-70%.
For example, a brokerage of ₹4 Lakh in a month provides you with revenue ranging between ₹2 Lakh to ₹2.8 Lakh. The exact amount you will get depends on your negotiation regarding this with the stockbroker.
HDFC Securities Franchise Eligibility Criteria:
In order to become an HDFC franchise or sub-broker, you need to fulfil certain pre-requisites which are enumerated as follows:
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- It is mandatory for you to be registered as an Authorised Personnel with SEBI.
- Minimum professional experience in the financial sector of 2 years or more is needed.
- You should be at least 21 years old.
- An educational qualification no less than 10+2 is needed, though having a bachelor’s degree is preferable.
- You have to submit some documents which are enlisted below:[/su_list]
- If you have a medium or large scale business set up, you need to provide the GST Registration.
- A valid address proof
- A proof of your ID
- PAN Card
- Certificate showing your date of birth.
- A cancelled cheque of your bank account is needed.
- Photographs of passport size.
- Besides the above mentioned primary requirements, there are certain other criteria which you will get to know once you meet with the HDFC Securities executives face to face
HDFC Securities Franchise Benefits:
Here is the list of benefits you can have after becoming an HDFC Securities sub-broker:
- Adding new customers to your existing client base becomes easy as you get to be associated with this full-service stockbroker that has already established itself in the financial industry for a long time. People trust such brand easily as they do not have to dig into a lot of details to know its track record as in case of the new companies or the non-conventional companies in the financial sector. It is especially true when you are a trader at the beginner level.
- Your transactions and details remain completely safe and secure as it uses the 128-bit encryption technology.
- They have dedicated customer helpline numbers to resolve your issues as well as enable you to trade through phone calls.
- You can start trading on NSE as well as BSE using the HDFC Securities. Other features which you can enjoy include trading on Futures and Options on NSE, making an online investment in the IPOs and cash-n-carry on NSE and BSE as well.
- With HDFC Securities, the competition in the locality will not be very high as it has a very limited number of offline branches spread across India. This will make it easy for you to leverage its brand name and prosper in your business without worrying about competitors.
- You get the option to choose for trading from among a number of trading platforms such as HDFC Securities Blink, HDFC Securities mobile app and HDFC Sec Web.
- You are provided with marketing collaterals consistently by the HDFC Securities, which further helps you in adding new customers to the network. Not only this, you can do this with very less or no extra expenses.
HDFC Securities Franchise FAQs:
Some common questions come to the minds of people when they think of becoming an HDFC Securities sub-broker. Such frequently asked questions have been answered in the following section:
How quickly can I begin my business with HDFC securities?
There are certain documents that need to be provided to kickstart a business with HDFC securities as a sub-broker.
If you are able to provide all the relevant documents without missing any of them, then the sub-broker registration process will be completed in a period of 3 or 4 days after which you can get your account activated with the broker. In rare cases involving missing of any details or any particular document, the duration for activation increases.
It all depends on how serious the issue is, as a major issue would take little longer and a minor one would take comparatively less time to get resolved.
Like the various full stockbrokers in the market, what business models fo HDFC Securities offer its customers?
In this case, only one partnership model is available named HDFC Securities sub-brokership or HDFC Securities Franchise which has specific requirements for setting up business, certain costs which you need to bear, revenue sharing and other benefits.
The potential business partners get limited flexibility from the brokership.
What is the total number of branches that HDFC Securities has in India?
There are about 250 outlets of HDFC Securities which are spread in 60 cities and towns of India. This is comparatively a weaker offline network with respect to other players in the market. Despite this, you can trust the brand as it ensures the best facilities to its partners and clients for their convenience.
Do I need to make an investment for setting up HDFC Securities sub-broker business?
An upfront cost of ₹2 Lakh is needed to begin the business. It will be refunded to you at the end. Other than this, some payments are needed regarding the setting up of your office space, hiring staff to carry out different operations etc, that will be discussed with you in detail while meeting the HDFC Securities executive.
On comparing we can find that the initial costs needed from the industry perspective fall in the average category.
In what locations are the HDFC Securities branches found in India?
You can locate the branches of HDFC securities in various parts of Goa, Chattisgarh, Andhra Pradesh, Delhi, Assam, Himachal Pradesh, Gujurat, Haryana, Karnataka, Jammu & Kashmir, Jharkhand, Keral, Maharashtra , Meghalaya, Punjab, Odisha, Tamil Nadu, Rajasthan , Uttar Pradesh , Sikkim, Uttarakhand and West Bengal.
As an HDFC Securities sub-broker, what advantages can you get?
- With lesser competition in an area and a very good reputation, HDFC Securities enables you to successfully run your business and make it a grand success through your efforts and dedication. It is enlisted among the top stock brokers in India.
- Though the returns may not appear to be quite lucrative, you can be sure of beginning a small business and get benefit in the long run as it is a promising brand.
- With some easy steps, you can open a sub-broker business with the company by submitting the appropriate documents and with the minimum basic educational qualification, age and investment. You will get good assistance throughout the process from the concerned executives, to make it hassle-free for you.
- After the completion of formalities, you get the login details. Then you can access the admin trading platform and the other available tools.
- You will get brochures, marketing collaterals etc, for better marketing support. Along with this, you will get direct assistance for increasing the acquisition of clients.
- The company provides its partner’s research reports, recommendations as well as tips to carry out the business activities as well as trading in the most efficient way. On getting the research report as an HDFC Securities sub-broker, you can even share it with your clients.
In case you are interested in setting up an HDFC Securities franchise or want to become sub-broker or any other form of partnership, let us assist you in taking the next steps forward: