Master trust franchise is a stockbroking business based out of Punjab. This full-service stockbroker which started in the year 1994 by Harjeet Sing Arora, also deals with the franchise distribution business. It was created as integrated trading nonbanking services provider.
There are more than 1.5 lakh clients operating under it all across the country, with over 600 proactive employees. There are different kinds of customers who are catered by this firm but the primary focus is on the retail clients. This is a one-stop destination for the clients as it caters all the financial requirements through its wide array of products.
Master Trust Franchise Review
Master Trust is registered with NSDL and CSDL. Equity and derivatives are dealt with, through BSE and NSE. MCX-SX is used for currency trading. For the commodity segment, MCX, and NCDEX are used that operates through Master commodity service Ltd, which is its subsidiary company.
Besides this, the firm provides DP services to its customers.
In this article, we will dig into the requirements of the security deposit, revenue sharing, offers, advantages and drawbacks, which will make it easier for you to decide if you really want to choose a partnership with Master Trust.
Master Trust Franchise Business models:
The partnership models offered by the Master Trust Franchise are as follows:
Master Trust Franchise or Sub-broker model:
The firm provides complete support to the clients who want to join this model in various aspects such as acquiring the clients, setting up the office along with other business requirements. It needs you to deposit some security money.
Mastertrust Business Associates
The operational work in this business model is less. Its main functions include generating business leads for the broker. After this, the process related to acquisitions, onboarding, trading, servicing, managing the Demat or trading account are all handled by the firm.
Master Trust Franchise Initial Deposit:
The initial money needed for depositing in the Franchise model is in the range ₹50,000 – ₹2,00,000 which is refundable in nature. Once you decide to leave the franchise business, you will get back this amount. Only the amount that had been deducted for late payments or non-payments will be deducted.
This amount is on par with the other stockbroking firm in the industry.
Another non-refundable amount you need to pay includes the membership charges for getting enrolled in the stock exchange and the investment needed for setting up the business and infrastructure and other related costs.
For more information, check this detailed review on Sub-broker fees.
Master Trust Franchise Revenue sharing:
The revenue sharing which the clients can get in the business models of Master Trust are as follows:
Master Trust Franchise
A competitive revenue sharing of 40%-80% is entitled to the Master trust sub-broker in this business model, which is at par with the other firms in the stockbroking industry.
The remaining amount goes to the main broker. If you have deposited a higher security amount initially period and more revenue is generated, then accordingly, the revenue share will increase.
Mastertrust Business Associates
Its revenue share is low compared to the above model as the roles are minimum. Depending on the number of clients you get to the broker, you will get a revenue share. Generally, it is in the range of 10% or so.
It is suitable for one who wants to have the least responsibilities and earn an additional income.
For more information, check this detailed review on Sub-broker Income.
Master Trust Franchise Advantages:
The benefits of opting for this business model are as follows:
- It provides numerous products and services, making it a one-stop financial products destination for potential clients.
- The reports can be accessed online along with providing the customized support to all the partners.
- Trading and investment can become more efficient because of the research reports. Consistent traders will also get SMS alerts.
- It has excellent customer care service.
- You will get support while setting up your business.
- The initial investment needed is minimal.
- There are risk calculator, stock screener, and news and market commentary for research which are of great help for the partners.
- Its investment portal is completely integrated that lets trading in mutual funds, equities as well as IPO.
- To ensure that the customers will take the right investment decision, it provides you with dedicated relationship managers.
Master Trust Franchise Drawbacks:
The disadvantage of this business model is that it’s brand recall is not as high as the other firms in the stockbroking industry. Other disadvantages are:
- The fund transfer needs about 2- 3 days to be completed as per the selected mode.
- It doesn’t provide a margin calculator.
- It doesn’t have an extensive offline presence.
Master Trust Franchise Requirements:
There are certain infrastructure requirements of Master Trust Franchise, which are as follows:
- You should have an office space of a minimum of 100 square feet.
- At least a single employee is needed to support you for carrying out the business operations.
- A stable internet connection, a telephone line, and a desktop is essential for trading as it is online.
- Make sure to get at least a minimum furniture and set your interior decor to create an aesthetically pleasing environment for the visiting customers. The first impression would have a lasting impact on them.
Master Trust Franchise Eligibility criteria:
Some basic conditions need to be fulfilled in order to start the Master Trust Franchise. These are enumerated below:
- You must possess a NISM certificate. You can check this detailed review on the sub-broker exam for more information.
- The minimum educational qualification you should have is ten plus two, though higher degree related to business, finance, and accounting is preferable.
- SEBI registration is a must for applying for this franchise.
- A complete understanding of the financial market of India is necessary to accomplish the business operations successfully. This includes knowledge regarding financial products such as equity, derivatives, futures, and options
Master Trust Franchise Offers:
Here are the offers which you can enjoy with Master Trust Franchise:
- Its revenue percentage can spike up to 80% if the situations are favourable and if such revenue is generated.
- At one stop, you can get various financial products which prevent the need to look out for any other stockbroking firm.
- Sub-brokers are trained to keep them updated with the latest tools and techniques so that they can stand out in the competitive market.
- Complete support along with training helps the business venture succeed.
- Updated research reports are provided.
If you are looking to become a sub-broker or a stockbroking business associate in any form, let us assist you in taking the next steps forward:
Master Trust Franchise FAQs:
While deciding to opt for any business model, various questions may pop up in your mind. We have dealt with the different aspects related to the Master Trust Franchise model to make sure that you can comprehend the process easily:
What are the partnership models offered by the Master Trust stockbroker?
You can get the option of selecting from among the two business models of Master Trust Franchise, namely the Master Trust Franchise and the Business Associate model.
Is any initial investment needed for the Master Trust Franchise business?
Yes, an initial investment is needed which includes a refundable security deposit ranging from ₹50,000 – ₹2,00,000 along with infrastructure investment, getting a desktop, stable internet and a telephone for connectivity.
Depending on the choice of your decor, you will make some investments for this also.
What revenue share is expected in the Master Trust Franchise business?
A revenue share ranging from 40%-80% is expected in this business model. This is not a fixed amount and varies depending on your initial investment, revenue generated and the size of your client base.
What benefits can I get by associating myself with Master trust stockbroker?
You can avail the following benefits by choosing this firm in the stockbroking industry:
- With this established brand name, it becomes easy for the clients to expand their business by acquiring customers.
- As a sub-broker, you will have a variety of financial products to offer your clients.
- Training and education will be provided for staying ahead in a competitive environment.
- For marketing purposes, the firm assists by providing pamphlets, mouth to mouth publicity, newspaper and TV channel advertisements, etc.
- Queries arising at any point while trading will be promptly resolved by the firm to ensure customer satisfaction.
- Good profits can be obtained owing to the use of latest technology and advanced trading platforms
- It intends to create a strong lasting relationship with the sub-brokers so that they do not feel the need for switching to other firms.
- It provides services such as live chat, email, centralized as well as the online resolution of queries that are available dedicatedly 24 hours.
- Accessing the reports quickly and conveniently as possible.
- You can opt for SMS subscription of updates.
How to do the registration of the Master Trust Franchise business?
The simple steps involved in the process of sub-broker registration are enumerated in the following section:
- The form available on the website needs to be filled up with all the basic details. Then an executive will call you to know if you are really interested in this venture.
- You will get another call in which all the details of the partnership model will be explained to you. A face to face meeting will be fixed in this step.
- During the face to face meeting, you need to ask all your doubts to the executive. At this point, you should negotiate the initial investment amount to get things in your favour as doing this after the registration will not provide you with any benefits.
- After knowing the details, if you wish to continue with the business model, then submit the relevant documents along with the cheque of security deposit.
- Once the submitted documents are verified, you will get an account ID with which the business can be started.
What documents are needed for the registration process?
Here are the documents that you need to keep ready for the registration purpose:
- Document for verification of your age such as PAN card
- In order to verify your economic status, you need to submit the birth certificate.
- Relevant certificates showing your academic qualifications.
- Proof of investment
- Proof of payment of security deposit
- SEBI registration certificate
- Cancelled bank cheque for bank details
- Passport size photos
- Applicant’s GST registration
How long does it take for the business registration process to be completed?
It takes a week or 10 days for the whole process to be completed if you have submitted all the documents without fail, or else the whole process will get delayed.
It takes about 40 days for activating the new code of sub-broker and 45 days for clearing the payout.
What are the services and products offered by Master Trust capital?
Some of the primary products and services available with this stockbroking firm are:
- Merchant banking
- Mutual funds
- Life Insurance
- General insurance
- Property services
- Margin funding and loan
- Financial planning
- SEBI Registered Portfolio Manager
- Depository services
- Portfolio management services (PMS)
- Margin funding
- Loan against shares
- Demat account
- Trading account
If you wish to learn more about sub-broking and franchise models of other stockbrokers, here are a few references for you: