Remisier vs Sub Broker

Remisier vs Sub Broker which one is better? Well, both are two different business models offered by the stockbrokers to those who want to do a partnership business with them. Though the main motive of both the models is the same i.e to increase the business of the main broker by acquiring more clients then what are the differences between the two?

In this article, we will clear the main difference between the Remisier vs Sub Broker. We will try to differentiate between these two models through various aspects like meaning, initial investment/security deposit, revenue sharing ratio etc.

Let’s start with the key difference between the two models.

Remisier vs Sub Broker: Key differences

Here are some of the top differences between Remisier vs Sub Broker business models in a tabular format for your reference:

Remisier vs Sub Broker: Meaning

A sub-broker is an agent of the trading member of a stock exchange who set-up his/her own office to work. We can say, it is just like an extension branch of the stockbroker who trades on behalf of the clients and gets a fixed percentage of commission on the brokerage generated by them.

A remisier also acts as an agent of the broking company, who works independently and gets a fixed percentage of commission for each transaction handled.

Remisier vs Sub Broker: Function

The main function of a sub-broker is to support the stockbroker by increasing its client base. It performs every function of a broking house i.e the client acquisition, motivates them to generate more revenue and problem solving of clients if any arises.

A remisier has only one function that is the client acquisition and rest are the function of the stockbroker.

Remisier vs Sub Broker: Office space requirement

Since a sub-broker performs almost all functions of a stockbroker, they require to set-up an office from where they can work. The minimum area required for the office set-up is mentioned in the sub-broker agreement between the two parties. It should be in the main location of the area.

A remisier do not require an office to perform their work. They can sit and work under the roof of the stockbroker. Also, they can meet their clients in the same office.

Remisier vs Sub Broker: Initial Security deposit

To start a sub-brokership, you are required to deposit a security money/Initial investment with the broker. Generally, it ranges from ₹50,000 – ₹3,00,000. The revenue sharing ratio of a sub-broker depends on the amount of the security deposit up to some extent in the case of many brokers.

Normally, a remisier requires a security deposit of ₹10,000 or a bit above this. While some stockbroker does not demand any security deposit or zero initial investment from the remisier as their job is not very risky.

Remisier vs Sub Broker: Job responsibility

A sub-broker is just like the stockbroker. He/she is supposed to manage everything of the broker. Their responsibility is not limited like a remisier. They are required to acquire clients and maintain a healthy relationship with each client so they can continue with the same broker for the long-time.

On the other hand, a remisier is only responsible to bring clients for the broker and rest are the responsibility of the main broker i.e to keep those clients with them for a long time.

Remisier vs Sub Broker: Job type

Obviously, it is a full-time job for the sub-brokers. They require to give their full in this job, then only they can get success. Their responsibilities are unlimited just like the main broker that’s why they need a full day to finish their job for a day.

The job of a remisier is very limited and they do it to earn some extra money. So, one can work under this model with their main job.

Sub-broker Pros:

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  • Have the right to access the broker’s tools and technology with the research reports.
  • Can get a very good revenue sharing percentage in comparison of the remisier as their job responsibility is much higher than them.
  • A good opportunity to become an entrepreneur.[/su_list]

Sub-broker Cons:

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  • Requires a lot of time to do their own research.
  • Requires more money for the initial investment and security deposit.
  • Needs to hire more employees and bear expenses on required office equipment to run the business.[/su_list]

Remisier Pros:

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  • A good opportunity to earn extra income. One can easily work as a remisier with his/her main job as it requires very less time.
  • The whole responsibility after the client acquisition lies on the shoulder of the stockbroker. A remisier is free from all responsibility after that.
  • One can start work as a remisier with a low or Zero initial investment/security deposit.
  • No need for an office. One can work from the office of the main broker or somewhere else also.[/su_list]

Remisier Cons:

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  • As the job responsibility is very limited because the main part of the job is done by the stockbroker, they earn a very low percentage of revenue share.
  • In some of the cases, the job role is limited to the introduction of the client to the stockbroker.[/su_list]

Conclusion:

Both business models have their own pros and cons. It depends on you that what is your requirement? Which one suits you according to your time and security deposit money availability? How wide is your client network? Etc.
So, before taking the decision to start a business in the broking field, you should have a clear image of Sub-broker Vs. Remisier model.

In case you are looking to become a sub-broker or a remisier partner, let us assist you in taking the next steps forward. Just fill in some basic details in the form below:

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