Upstox is a new discount broker in the stockbroking industry that is creating a notable impact on the market through its Upstox sub broker model. Previously it was known as RSKV and incorporated in the year 2012. Raghu Kumar, Ravi Kumar and Shrinivas Vishwanath started this firm. Zerodha franchise and 5 Paisa Franchise are the two discount broking partnership models that can be seen as its tough competitions.
The company reached a ₹400 Cr. mark of annual trading turnover in just 2 years. 1% of this was contributed to the NSE’s net traded turnover in the same year. Then in 2016, the firm collaborated with eminent entities such as Ratan Tata, Kalaari Capital and GVK Davix to launch the Series A round funding to expedite the efficiency in technological and operational fields.
In the same year (2016) when the Upstox Pro trading platform was started by the company, it proved to be quite productive.
Clients can avail a number of products offered by Upstox in numerous segments, such as Commodities, Forex, Currency, mutual funds, IPOs, equity all of which will enable them to trade seamlessly.
The clients and sub-brokers of the firm experience advanced trading practices as Upstox leverages technology. They can perform seamless trading transactions through its numerous self-developed platforms for trading such as Upstox Pro, Upstox Pro Mobile etc. The firm specializes in zero brokerage cost models.
In NSDL and CSDL, Upstox is the registered member and it also has the power to provide Depository Participants or DP services. Since the year 2016, the business partners and clients of Upstox are able to trade in the leading exchanges of India such as BSE, NSE, MCX.
You should know all the aspects of the Upstox broking house such as its business models, revenue sharing etc. before partnering with it.
Let’s dig into the details
Upstox Partnership models:
There is only one business model that Upstox provides its potential customer and it is known as Upstox sub-broker model or Upstox authorised partner model. Depending on the amount of brokerage your client generates, you will get your share.
Some basic knowledge regarding the stockbroking industry is always better. This business model has people from different streams enrolled in it, such as educators, students, social influencers, techies, Youtubers etc. It is just a matter of interest in the industry that tempts them to be a part of it.
In this partnership model, you won’t be entitled to a fixed income. After you begin trading in the Upstox trading platform, you will get a certain amount of commission or profit. Besides this, as a sub-broker, if you have a larger number of clients mapped under you, you will stay profitable.
This is the reason an Upstox sub-broker should refer to as many people as possible.
For every reference you provide who starts trading with Upstox, you are entitled to a commission of 10%. Thus, if you have an extensive social network, that will be quite advantageous. In such a case, you will be able to earn even if you are not trading.
Upstox sub-broker Initial Costing:
The sub-broker registration charge for becoming a sub-broker in Upstox is minimum and is only ₹3,000. Of this amount, the SEBI registration fee is ₹2200 and the Upstox service and handling fees are ₹800.
Such a small initial investment is quite lucrative for potential customers to join this discount broking house, especially the young entrepreneurs who are not financially strong enough to invest a huge amount.
For more information, check this detailed review on Sub-broker Fees.
Upstox sub-broker Revenue Sharing:
Your profitability in this network marketing business of Upstox will depend on the rate at which you trade. More trading is obviously better for you as it provides you with a chance of earning better.
You can expect a revenue sharing percentage of 10-30% in the Upstox sub-broker business model and the main broker retains 70-90% of the brokerage generated. Tracking the clients along with their trading platforms is quite simple owing to the exceptional trading platforms and portfolio tracker of the firm.
Considering an example, if the net brokerage in a month is ₹4 Lakh, then you can keep ₹1.2 Lakh and the broker will keep the remaining ₹2.8 Lakh.
Besides this, if you are successful in adding a client to the company’s network who starts trading with it, you will receive a commission of 10%.
The best thing about referring your friends or relatives or others in your social circle is that you do not have to handle operations such as acquiring them, onboarding, servicing, providing tech help or customer support because all these will be accomplished by the broker.
Despite being a new player in the stockbroking industry, Upstox has the potential of being a market leader as it easily adapts and quickly grasps the industry standards.
Upstox sub-broker Benefits:
There are numerous advantages to joining the Upstox sub-broker business model, which are as follows:
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- The investment needed in the initial stage to begin the business with this firm very less, so anyone can opt to join it.
- The traders, as well as the business partners, get a self-developed trading platform for smooth and efficient operations.
- The support team of Upstox provides excellent timely assistance in resolving any issue that pops up during the business operations.
- Though the company has been in the market for even less than a decade, it has been successful in instilling trust in the minds of the traders and acquiring clients.
- Becoming an Upstox sub broker is quite easy as a few simple steps are needed in the onboarding process.
- There is no investment needed for setting up the infrastructure.
- Since it has a single partnership model, the sub-broker can completely focus on his functions to make it a success by offering the partners as well as their clients with full values.
- You can have regular earnings if you succeed to add new clients to the existing customer base continuously.
- The operational activities involved in the business model is the least.[/su_list]
Upstox sub-broker Drawbacks:
Every business model has certain benefits as long with drawbacks, which you need to be well aware of before deciding to join the company’s network. Its disadvantages are as follows:
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- It offers a single partnership model which is not attractive for the customers looking out for various options while opting for a business model.
- The revenue sharing ratio is not very high, so potential customers may get diverted to the stockbroking houses offering a greater revenue share.[/su_list]
Upstox sub-broker Eligibility criteria:
There are no specific eligibility criteria which have to be fulfilled to join this discount broking house. Only a few common things are needed which are:
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- You should be having good social connectivity and able to convince people to join Upstox which will create a marketing chain.
- You should have the enthusiasm to be an entrepreneur.
- Some fundamental knowledge regarding the stockbroking industry is an added advantage.[/su_list]
Upstox sub-broker Offers:
If you join Upstox as a sub-broker, you can avail the following offers:
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- You can get complete support and assistance for using the tools that Upstox offer.
- Assistance in carrying out the marketing function for your business will be ensured by the support team. This is accomplished by providing you with company information, brochures, pamphlets etc so that the brand awareness can be created and clients will be acquired easily.
- With Upstox, you can experience that it is a one-stop destination which effectively manages your transactions in an orderly manner. This includes management of your previous trade history by being able to track the trade accounts, management of the records of previous earnings and ease of calculation of the brokerage on a monthly basis.
- You can trade conveniently in a hassle-free manner using the platforms that have high performance such as Dartstock, Pro Web etc.[/su_list]
In case you are looking to become a sub-broker or a stockbroking business partner in any form, let us assist you in taking the next steps forward:
Upstox Sub-broker FAQs:
In the following section, we have dealt with some frequently asked questions which may come up in the minds of potential customers when they consider joining Upstox sub-broker model. This will make the process quite comprehensible for you:
What are the partnership models that Upstox offers its potential customers?
Upstox provides only a single partnership model, i.e the Upstox sub-broker or franchise model to whoever wants to join the discount stock broking house.
What is the initial investment needed for becoming a sub-broker of the firm?
Upstox charges the least amount as registration charges for you to become a sub-broker and it is ₹2200 for SEBI registration and ₹800 for the servicing and handling fees of Upstox, both amounting to ₹3,000.
The main intention of the company behind this least initial investment is to attract a large number of customers to increase its client base and provide a boost to the youth section who have an entrepreneurial mindset but do not have the capacity to make huge initial investments.
What revenue share can I expect after joining the Upstox Franchise model?
You will be entitled to a revenue share of 10%-30% in the sub-broker model. The exact amount depends on the brokerage amount generated and the size of your business.
If you can add more clients to the company’s network who start trading with Upstox, you will be entitled to a commission of 10 %, which is quite effortless if you have a good social circle.
This can be earned regularly as long as new clients start trading through Upstox after your reference.
What is the process of registration as a sub-broker in Upstox?
The registration process is quite simple in which the Franchise team examines the capacity of the potential customers to acquire more clients to the firm. This check is done before getting them enrolled. If you succeed to impress them with your business plan then the partnership can be established.
It is always advisable to state your expectations and clarify your doubts regarding the business model if any, before beginning the partnership. It will be a smooth journey for you since there are very less operational activities which have to be accomplished by you.
Once you get enrolled, you will be able to access the dashboard and begin your business as soon as possible.
How long does the enrollment process take?
This model has the least waiting time in the stockbroking industry as you need to wait for only 4 or 5 days for the completion of the process.
But make sure to know every detail about the company, its policies, the expenses you need to make, the revenue share you should expect and every other detail before taking your final decision.
This will leave no house for any kind of regrets at a later point of time after the partnership.
What benefits can I expect after my partnership as a Upstox sub-broker?
You will enjoy numerous advantages with Upstox as a sub-broker. These are enlisted below:
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- You can begin the business with the least investment of ₹3000.
- The formalities needed for enrollment is very less.
- You can take advantage of the positive brand image of the firm to acquire more clients and earn commission easily.[/su_list]
Thus it is possible to get an income even without trading, just through referral. For this, a strong social network is needed.
Why should I opt for the Upstox Franchise instead of other discount stock brokers in the industry?
If you are someone who has a very good social network, looking out for an easy opportunity to earn, have an entrepreneurial mindset and knows about stockbroking industry, then Upstox sub broker model is best for you.
The most important reason to suffice this is its least initial investment that can be afforded even by the students. Though the revenue sharing ratio of this business model is not very high, it can still give your career a good kickstart in the stockbroking industry with minimum expenditure.
So you should opt for Upstox sub broker model.
There are a lot of other stockbroking houses in the market that provides attractive revenue shares and other added benefits but you should be able to select the one that suits your budget and your business goals.