As traders and investors, we often come across the word ‘REMISIER’ in the stock market space. But those just entering the market might find it hard to understand what Remiser means? What is its purpose? Most importantly, what do they do?
Worry not, we are here to help. So tag along till the end.
Let’s start by understanding its meaning;
Meaning of Remisier
Let’s start with an example,
When you move to a new city and look for an apartment, you look for someone to help you in getting a room. This person is known as the broker, he basically introduces you to the house owners and finally helps you crack the best deal.
Remisier is an individual who sources new customers or clients for the broking house from their own client base. Also known as the Commissioned dealer’s representative.
He is an indirect employee of a stockbroker who earns commissions on each successful onboarding of the client.
Literally speaking, Remisier means an intermediary in the stock market who basically bridges the gap between customer and broker firm by introducing them to the stockbroker offering an easy gateway into the capital market space.
Requirements to Become a Remisier
Although nothing is as simple as it sounds. There are certain requirements that need to be fulfilled and criteria that need to be met in order to become a verified member to work in the capital stock market as a remisier.
First comes the documents;
Documents Required to Become a Remisier
Before proceeding with the application or enrolling process you need to keep certain documents handy to avoid any sort of discrepancies such as :
- PAN CARD
- AADHAAR CARD
- ACADEMIC CERTIFICATES
- ADDRESS PROOF
- BANKING DETAILS
- INCOME PROOF (CANCELLED CHEQUES)
While documentation is the core of this entire process of becoming a partner, possessing certain qualities are indeed important to meet the eligibility factor;
- Must have a demat account with the respective stockbroker.
- Since it involves direct interaction with the client the person must possess good communication and presentation skills.
- Most importantly the person must be registered under either of the two stock exchanges: NSE or BSE.
- A person must be a minimum of 18 years of age.
- Must possess minimum HSC level of education
Apart from this, if the individual possesses financial, educational or work experience, that would be an added advantage in terms of getting hired by the stockbroker.
What about the costs involved?
In the stock market, partner plans involve three types of costs:
- Registration Fee
- Initial deposit
- Infrastructure Costs
The registration fee is basically the application fee charged post document verification.
Generally, there are no security deposits for Remisier plans in Franchise models. And similarly, since no particular working space is required to become a remisier with any stockbroker, no infrastructure costs need to be paid.
Remisier Commission Model
As you know a remisier earns through a commission model. This means each successful referral done will generate some percentage of commission for the partner.
The table below shows brokerage percentages offered by different brokers in India:
How to Become Remisier?
Here is the step by step guide along with some basic necessities along the way;
First of all, you will need to open a Remisier Account with any of the brokers of your choice; such as Angel One, to do so you may follow the following steps:
- Go to the official website of the stockbroker
- Enter some basic details such as name, contact number, email id, city.
- Click on “SUBMIT”
- A few minutes later you’ll receive a call from one of the customer representatives of that particular stockbroker.
- Upon updating personal details you’ll need to verify your documents as mentioned above.
- Once verified, a unique code or tag will be generated in 2 to 3 days.
Once you receive your code you are good to go!
How Does a Remisier Work?
But wait, how does actually these remisiers work?
Often many confuse between Remisier vs Sub broker, although they may sound familiar, both happen to have different working styles.
Working as a remisier is quite easy when compared to other franchise models to partner with brokers. As you get the freedom to work at your own pace for you are not obliged to the stockbroker directly.
First, with a decent network base, you’ll need to reach out to those individuals and simply introduce them to the stockbroker. That’s all.
But remember, a remisier isn’t supposed to provide any trading tips or advisory to the clients. It’s only the successful onboarding that generates their commission.
Also, it’s a one-time effort meaning, once the client joins the trading platform, each time they trade, a certain percentage of the brokerage is shared with the partner as commission and this continues in their entire life span.
Advantages and Disadvantages Of Remisier?
Are you thinking about what benefits you can get with this partner model?
Indeed a valid question!
Let’s begin with the benefits of becoming a remisier in the stock market;
Advantages Of Becoming a Remisier
Here comes revealing of hidden benefits of becoming a remisier:
- First of all, no specific infrastructure is required for working
- No initial deposits need to be made
- Offers flexible timing to work from anywhere
- The brokerage of about 15% to 30% on each successful referral
- Can be done as part-time or full time or even as a side business.
- Generates extra source of income
Disadvantages Of Becoming a Remisier
Potentially the only demerit is that as compared to other partner models, their earning is quite less.
Plus this includes quite a hassle-talking to clients, explaining to them about the stock market and finally onboarding them. After all this work there merely are limited to being the introducers of the broking house.
If you are looking for a way to make some extra money, becoming a Remisier is certainly an option.
Not only for ones in the finance business, but this partner model is also literally suited for all. Be it a beginner or a professional level trader Franchise models help to boost their careers and flourish with great opportunities in hand.
Perhaps you could give it a shot!