Are you also looking forward to becoming a sub-broker but a bit hesitant? This may be because you are still unaware of the sub-broker benefits! Or perhaps wondering if it’s all worth it? This article is here to vanish all your fears and help you flourish in your finance career.
Let’s make you understand what a sub-broker is!
Basically, a sub-broker is an embodiment of a concerned stockbroker who acts as the intermediary between the broking house and the customers. The person works as a financial advisor and even sometimes as the service person for client retention.
Confused about how do sub brokers make money?
Sub-brokers are the direct employees of the stockbrokers and work in proper infrastructure and thus full time. Although their salary isn’t always fixed which depends on the brokers they are associated with for their earning is commission based.
Unlike remisiers, sub-brokers earn quite a high commission which ranges from 50% to 80%.
Say for example,
If a customer or the client trades of about ₹500000 and pays ₹45000 as the brokerage, then,
50% of ₹45000, will be,
This means the sub-broker will earn a minimum of ₹22500 from one client.
This amount varies as per the total brokerages paid by different customers.
But wondering what exactly these sub-brokers do?
Basically, they are the sort of extended branch of the stockbrokers, their work is almost the same as the broker, but they have limited rights. They perform almost similar tasks as the brokers.
In most cases, their primary focus is on getting new clients for the firm and along with that their responsibilities bend slightly towards the service part. Meaning they provide trading tips to the clients on board.
Practically act as the relationship managers to guide clients in all sorts of investments, equity, commodities and even in Mutual Funds.
Thinking about what benefits you can reap from this earning model of the share market?
What Are The Benefits Of Sub Brokers?
Besides the revenue sharing what other benefits of a sub-broker? Let’s look at some of the major advantages:
A sub-broker represents the stockbroker and basically acts as the extended branch of the firm, he carries out all his work under the legacy brand name of the broker he is associated with.
This makes him more approachable which helps him in his business expansion.
Get Proper Infrastructure To Work In
Not just for client retention, a sub-broker is also a financial advisor and to perform that task a specific office space is provided by the broker to carry out all the functions efficiently.
Provided Advanced Tools To Run Business
Sub brokers are also given the technically advanced business tools and trading platforms to track the client’s trading performance along with managing the entire client profile with ease.
Along with that, separate risk management tools are provided by different stock brokers to their sub-brokers to make the entire client handling process smooth.
Research And Stock Advisory
With great business tools comes the proper research reports that can be used by the sub-broker to guide the customers towards the right direction in terms of profitable trading.
Most importantly, as a new sub-broker, you might get overwhelmed by the roles and responsibilities that you need to abide by. So to help you out in that situation, a stockbroker provides a 24/7 support manager to guide and explain the working process.
Along with that comes the free training programs in the form of seminars and webinars to enlighten the entire stock market and its happenings.
High Returns In Minimum Investment
Finally, comes the money part! So sub-broker business is a commission-based money-making mode in which with minimum investment a person gets heavy returns.
The security deposits generally range between ₹50000 to ₹300000; which is duly refundable.
With a clear understanding of sub-broker benefits, now you must have got the idea of whether you should become a sub-broker or not?
But also it is important to do an in-depth analysis of which one to pick from the pool of amazing brokers available in the market. This might also depend on your capital available to invest and your future financial goals.
Hope the article helped you in making the right decision.
Happy investing Guys!
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