LKP Securities Franchise is one of the reputed franchise businesses that has its presence in the Indian stockbroking industry since the year 2005. The firm i.e. LKP Securities began its operation in 1948. This financial solutions provider is known to provide a wide variety of financial services.
This is a certified ISO-9002 stockbroker in the market that lets you trade the equities, debt instruments, currency, commodity, structured products, and third-party distribution. Owing to its best services to the customers, this SEBI registered sub-broker has more than 100,000 customers to date.
It is a category-1 merchant banker which has AMFI registration as a Mutual Fund Distributor. If an individual wants to become a MF distributor, learn how to become a sub broker in mutual funds.
The primary group company of this stockbroker is LKP Finance Ltd which has been registered with RBI as an NBFC.
It has membership in BSE and NSE for the Capital and Debt market segments for the LKP securities and in case of Commodity segment, it has a membership of MCX, MCDEX, and DGCX-Dubai. For currency features, it is a trading member with NSE.
You can enjoy the services that are customizable as per your requirements. Before deciding to invest in the project, you should know all its aspects such as the types of business models offered by LKP Securities, the initial investment needed, the offers it provides, benefits of joining it and the drawbacks as well.
This will help you in making a well-informed decision.
LKP Securities Franchise Business models:
There is a single business model through which the stockbroking firm has extended its presence in major parts of the country. This is the LKP Securities Franchise model which is also referred to as the sub-broker model.
The primary function of a sub-broker is client acquisition, train them to systematically perform their assigned tasks, enable them to do trading in the respective platforms, provide them research reports and recommendations to ensure their profitability and other related things.
You need to understand the basics of the security market and have some experience in this field to be successful in your business venture. An office needs to be set up in this business model where the sub-broker will carry out all the operations.
LKP Securities Franchise Initial deposit:
Some security money needs to be deposited to start this franchise business. The reason why this money has to be paid is for the infrastructure setup purpose. The amount you deposit at the initial stage determines the revenue share you will be entitled to at a later point of time.
You can use your negotiation skills during the sub-broker registration process, to reduce the security deposit amount which ranges from Rs.25,000 to Rs.100,000. It is low compared to the other stockbroking firms in the market.
LKP Securities Franchise Revenue sharing:
There are different factors on which the revenue sharing of a sub-broker depends. These are the amount of initial deposit made, the revenue generated from the business, and the size of your client base.
In general, the sub-broker gets an amount of 50%-60% of the net revenue generated and the remaining 40%-50% goes to the main broker. Besides this, there is an option to trade and get more earnings.
For more, check this: Sub Broker Income
LKP Securities Franchise Eligibility criteria:
You need to fulfil certain basic conditions to start this franchise business, which is as follows:
- Experience is needed in the stockbroking business so that you can carry out your business processes easily and succeed as well.
- A basic educational qualification is needed, though higher degrees in business and finance are obviously preferable. There is a possibility, that this stockbroker may ask you to appear for a sub-broker exam. Just check with the broker executive, whether it is a mandatory step to move ahead in the process.
LKP Securities Franchise Benefits:
The advantages of starting this franchise business are as follows:
- You get a chance to be associated with this reputed stockbroker which will make client acquisition easy for you.
- Sub-broker gets a chance to earn more by doing more business.
- There is a wide range of trading products that clients can get with this business.
- It has a good offline presence in various Indian cities.
LKP Securities Franchise Disadvantages:
Besides the advantages, you should be aware of the shortcomings of any franchise business before opting to join it. Its drawbacks are as follows:
- Compared to other stockbroking firms, it has a higher brokerage rate.
- The transaction charges of these firms are also on a higher end.
- The focus on technology is less.
- Only a single business model is provided, so if the potential clients are looking for different options, they won’t be quite inclined to join this partnership model.
- In the case of multiple business models, more revenue is generated compared to the one that has a single business model.
LKP Securities Franchise Offers:
Here are various offers you can enjoy by joining the LKP Securities Franchise:
- Training is provided to the sub-brokers so that they are able to know how to carry out all the processes to attain maximum profitability.
- You will get marketing support in the form of advertisements to create awareness about the brand.
- You will also come to know the usage of the software that you will use for trading purpose.
- There is a customer care desk to provide you with complete support.
- The trading account opening will be done for free.
- You do not need any AMC and still enjoy lifetime free trading account.
- For Demat AMC, the amount needed is quite minimal.
- The brokerage available can be discontinued as well as customized.
- The trading exposure which you will get is about 4 times.
- Amazing referral bonus can be enjoyed.
If you are looking to become a sub-broker or a stockbroking business partner in any form, let us help you in taking the next steps forward:
LKP Securities Franchise FAQs:
We have answered some of the frequently asked questions in the following section so that you can easily understand the whole process of setting up the LKP Securities Franchise. Go through the following section to know all the details of this business model, whenever you want to start one:
What are the different types of partnerships which LKP Securities offers?
There is a single business model that LKP Securities offers its potential customers, i.e the LKP Securities Franchise model.
Do I need to make an initial investment in order to start the LKP Franchise business?
Yes, some investment is needed to begin this business, i.e the initial security deposit in the range of Rs. 25000-Rs.1 lakh.
Along with this, you should be prepared for infrastructure investment and other related costs of the office such as the internet charges, telephone line, a desktop for trading, furniture and other interior decors to create an aesthetically pleasing environment.
What revenue share can I expect from the LKP Franchise business?
A revenue share of 50% to 60% can be expected in general, though there are some factors which affect the final income such as the amount of security deposit, the size of your client base and the revenue generated.
What advantages can I get from the LKP Franchise business?
The benefits which you can get by starting this franchise business are as follows:
- This company has been existing in the market for many years for which people trust the brand.
- It meets the requirements of people by proving a range of products and services thus ensuring happy and satisfied customers to date.
- Because of the single business model offered by it, the management of partnership business becomes easy.
- It offers user-friendly trading platforms to its customers.
- With a range of services, it has become a one-stop financial service provider for its customers.
- The trading tools are available for access in any device you want such as tablets, phone, laptop, etc.
- There are offline as well as online trading services which let you chose the one as per your convenience.
- As per your demand, there will be the availability of customized services.
- A team of experts provides you with in-depth research and analytical reports.
- It has a strong presence through various branches across Indian cities.
- With respect to various stockbrokers in the country, the initial investment needed in this case is less.
What are the products and services offered by this stockbroking firm?
You can get numerous products for trading such as equity, derivatives, Demat services, services based on the internet, commodity, e-broking, mutual fund, insurance, IPO, depository services, merchant banking, debt and money market broking, availing loan against shares.
The best thing is that you can enjoy customized services related to research so as to take the best investment and trading decision.
It has a fundamental and technical research helpline that provides advisory and other related services whenever required. All such services have made this a one-stop destination for the potential customers because of which they opt for it.
What are the different mutual fund options, product offerings and life insurance services you can get with LKP Securities Franchise?
The options offered under Mutual Funds are tax-saving funds, ELSS funds, growth funds, dividend funds. For the High net worth individuals, retail and corporates, LKP offers IPO services such as Corporate Fixed Deposits, NCDs, Tax-free bonds, Capital gain bonds, SME issues, GOI 8% savings taxable bonds.
The insurance advisory services that you will get from this stockbroker include Life Insurance, Non-life Insurance or General Insurance, Health Insurance, Motor Insurance, Travel Insurance, Asset Insurance.
What are the various supports you can get from this LKP Securities Franchise?
You can get the following support from LKP Securities Franchise:
- Timely research and advisory assistance.
- You can enjoy connectivity to seamless trading because of the high-end technology.
- It has the facility of marginal funding.
- Whenever you have any queries with respect to your business, that will be resolved by a dedicated relationship manager assigned to you. Both the client and business partner can enjoy 24*7 support from the back end office.
- Without paying any extra cost, you can avail online products.
What is the process of registration for LKP Securities Franchise?
There are a few simple steps which you need to follow for registering as an LKP Securities Franchise:
- A registration form seeking all the basic details needs to be filled up first after which you will get a callback.
- Then you will get another call in which you will be informed about all the details of the business model. A face to face meeting will be fixed in which you can get all your doubts clarified.
- If you agree to all the terms and conditions and still prefer to take up the business venture, then, the relevant documents have to be submitted along with the security deposit cheque.
- During this time, you need to use your negotiation skills to reduce the amount you need to pay as the security deposit.
- The document will be sent for verification purpose after which you will get a registration number to carry out your business process.
How long will the process of registration take to complete?
It will take a few days to complete the registration process if you submit all the documents on time. If any information is found missing, it will take even longer.
What are the documents needed for the registration process?
Keep the original documents as well as the photocopies enlisted below ready to make sure that the registration process gets completed smoothly and in the least possible time:
- Proof showing your identity.
- Proof of your office infrastructure.
- Aadhar card
- Proof showing your address
- PAN card
- Certificates showing your academic qualification
- A few passport size photos
- Cancelled cheque or bank statement for the bank details
- Poof of your date of birth
- A stock exchange or SEBI registration certificate
If you wish to learn more about other stockbroking business opportunities, here are a few references for you: