Zebu sub-broker is a business model of one of the most important players in the stockbroking industry of India. Mr Vijaykumar Vellaiyan brought the firm into existence in the year 2008. It has its headquarters in Chennai, Tamil Nadu.
Despite being new to the industry, this full-service broker has acquired a prominent position in the market and represents the institutional and corporate investments in the sector.
In the year 2013, Zebu was incorporated in Erode in Tamil Nadu. Through its extensive products, services and support to the clients, it has successfully expanded its branches in the country. There are currently more than 400 branches spread across India.
It makes sure to meet the financial requirements of its customers in the present and the future.
This firm enables its investors to trade smartly through its trading platforms that are safe and secure. You should thoroughly understand its business model, security deposit requirements, revenue sharing ratio, offers, advantages, disadvantages and registration process before finalizing your decision to join it.
Read on to know all the aspects in detail!
Zebu Wealth Partnership models:
There are two business models offered by Zebu Wealth. These are as follows:
Zebu sub-broker model:
This is also referred to as the branch office partnership model which is quite common in the stockbroking industry. It needs a person capable of setting up office infrastructure for successfully running his business.
The office has to be at least 250 square feet which can be rented or else purchased in the prime location of the city as a remote area will cause loss to the business.
This is because the potential clients may not be able to spot the office easily when they are planning to join any sub-broker model. This may cause them to get diverted to other firms to meet their business requirements.
The infrastructure set up includes having a desktop or laptop with good internet connectivity along with telephone line for communication purposes.
Once all this is established, you are ready to start your business processes under the firm’s brand name. Initial security deposit is needed and you will be entitled to a revenue share for your work.
Zebu Associate or Remisier model:
The primary purpose of a Remisier in this model is client acquisition after which all the proceeding works will be carried out by the main broker. Thus office set up is not needed in this model. The Remisier can operate from the main broker’s office itself.
Zebu Wealth Initial Investment and Costs:
The following section explains the amount you need to invest in each model to start the partnership business:
Zebu sub-broker Initial Costs:
In this branch office partnership model, a minimum security deposit of ₹50,000 has to be deposited by the potential client. The amount can also be higher if the investment capacity of the person is higher.
This amount is one of the important determinants of the revenue share that a sub-broker will get. If the deposit is higher, so will be the revenue share.
Zebu Remisier model Initial Costs:
The security money needed in this model is quite low and is only ₹10,000 which is at par with the peers in the stockbroking industry.
People with low-risk appetite or those who intend to get an extra sub-broker income besides their primary business can opt for this model. Since it is only a referral model, further investment is not needed as in case of the sub-broker model.
For more information, check this detailed review on sub-broker fees.
Zebu Wealth Revenue Sharing:
Each of the two business models has a different revenue sharing ratio as stated below:
Zebu sub-broker Revenue Sharing:
A Zebu sub-broker is entitled to an amount fo 40%-70% of the total revenue generated and the main broker gets the remaining part.
Since a lot of functions are carried out by him, he gets a higher revenue share compared to the main broker. Sometimes it may happen that the company may decide to pay even a higher percentage.
There are certain factors on which the exact percentage is decided. this includes the income generated, the initial investment made by the sub-broker, size of the client base and his negotiating potential.
Zebu Associate Revenue Sharing:
The gross revenue which the clients of a Remsiier generated determines his revenue sharing percentage every month. It generally varies between 15%-30% and the remaining 70%-85% are entitled to the main broker. This is justified as the major functions after the referral is carried out by the main broker only.
For more information, check this detailed review on how much a sub-broker earns.
Zebu sub-broker Eligibility:
Here are some of the criteria that you need to fulfil to become a Zebu sub-broker:
- Minimum experience of 2 years is needed in financial products selling. You may have done this as a broker or his employee, or Remisier or Financial planner or insurance advisor; or as sub-broker or his employee.
- It is essential for you to be a SEBI certified Authorised Person.
- A valid NISM certificate is needed in the capital market or currency and equity derivative market.
- In the financial market, the person needs to have a good track record.
- In order to ensure that he meets the business needs, he should be financially sound.
- The monthly revenue which a Remsier brings will be mapped to the incentives they earn.
A few stockbrokers may ask you to appear for a sub-broker exam. You are advised to check with the Zebu Sub-broker whether they have any such “mandatory” requirements.
Zebu sub-broker Advantages:
Here are the benefits you can enjoy being in Zebu stockbroker:
- The stockbroking house offers two business models from which potential clients can choose the one that best suits their business requirements.
- It has successfully created trust among its partners through its excellent services.
- There are various products from which clients can opt for the one that best fits their needs without having to think about switching to some other stockbroker.
- It provides a safe and secure trading platform which clients can access anytime and at any place in different devices.
- It has a specialized team to generate research reports regarding the best trading products to make sure that the clients make profitable investments.
- It shares the profit with its partners to make sure that it is a win-win situation for both parties when the company remains profitable.
- Customer experience advanced technology while trading.
Zebu sub-broker Disadvantages:
The main disadvantage which this stockbroker has is that compared to its peers it is a new player in the market. So, it is obvious that the client base, branches, and trust in the minds of the people are comparatively lesser. But this is not at all an issue until it gives its best to satisfy the demands of its clients and tries to emerge as a stronger player in the near future.
Some other drawbacks include:
- It doesn’t offer banking products to the clients.
- There are no robo advisory services available.
Zebu Sub-broker offers:
Here are some of the interesting offers which Zebu provides its sub-brokers:
- Different schemes are provided to attract clients.
- The revenue sharing is flexible in nature.
- Franchisors can attain flat revenue sharing.
For more information, check out some of the latest sub-broker offers.
In case you wish to become a sub-broker or a stockbroking business partner in any capacity, let us assist you in taking the next steps forward:
Zebu Sub-broker FAQs:
There are many frequently asked questions related to Zebu sub-broker, which you might come across while deciding to opt for this business model.
Therefore we have answered them in the following section to simplify things for you and make the process comprehensible:
What are the products and services offered by Zebu Wealth?
Customer satisfaction is the primary thing for the main broker. This is the reason it provides a range of products and services. This helps it in the easy business expansion so that it can attain the grip in the stockbroking industry just like its established peers.
The services which it provides are:
- Financial services
- Investment and trading
- Commodity Broking
- Portfolio management services
- Mutual Fund Distributions
- Currency Broking,
- Wealth Management
- Services such as providing offline assistance through its branches and franchises, research reports, online support.
- Intra-day tips
What are the supports which clients can get from this stock broking house?
The support provided by Zebu Wealth is mainly for customer retention and gradual expansion of its business in the market.
These are as follows:
- Customers can experience a revolutionized trading through the introduction of a single account for equities as well as commodities.
- You can get all the tools and features needed for the trading of Futures and Options through FnO analysis features of Zebu.
- It is possible to get the market moment overview across various indices through the Zebull Smart Trader’s Indices map
- Daily end reports are provided related to the fundamental market updates. This is how the Zebull Reports News is helpful.
- Detailed information can be attained through the ‘Detailed Symbol Workspace’.
- Customers can watch hundreds of indicators, studies as well as data related to 900 scripts through Zebull.
What are the benefits of the two partnership models of Zebu?
The advantages of Zebu Sub-broker are:
- Client and brokerage can be managed by the sub-broker.
- The revenue sharing ratio is lucrative.
- It is an excellent opportunity to begin a business under an established brand name.
- All the tools, techniques, research reports etc. are accessible to a sub-broker for the ease of trading.
The advantages of a Remisier are:
- If you acquire more clients, you can easily get a better revenue percentage.
- It doesn’t need any investment in infrastructure set up.
- You can opt this even if you have some primary business because the responsibilities in this model are least and don’t need your whole focus. Thus you can do this as a side business and still earn a good income.
What are the exchanges of which Zebu Wealth is a member?
This stockbroker has licensed membership of MCX, SEBI, MSEI, CDSL, BSE, and NSE. It is a one-stop destination for its potential clients as they can trade all the products in these exchanges.
What is the process of registration of a Zebu sub-broker?
The few steps needed for the Zebu sub-broker registration are as follows:
- There is a lead form available on the website which needs to be filled up after will the call center executive will call you to verify your interest in the business model.
- In another call, an appointment for the face to face meeting will be fixed where you will be explained the details about the partnership model. You can also ask any questions related to the business. The revenue sharing ratio and the initial deposit which you need to make can also be negotiated at this point to get things in your favour.
- If all the things are clarified, you need to submit all the documents which will be sent for verification. Submit the security deposit cheque also at this point.
- When verification is done, an account ID will be provided to you to begin the business operations.
How long does the registration take to be over?
It takes about a week to 10 days for the whole process to be completed. But if any information is missing, the process might take even more time. The SB code gets activated in 21 days and the payout is done in 3 to 4 weeks.
What are the trading platforms used by Zebu sub-broker?
The following trading platforms are used by Zebu Sub-brokers:
- Zebull Smart Traders:
This is a simple trading software with a lot of essential features that help you in the analysis as well as order placement through a single window. It can easily operate through the trading platform of Zebu.
Advances charting tools, Powerful Scanner, Comprehensive Data, Insightful Workspace, Reports, and News are its primary features.
- Zebu Trade Mobile Application
It lets you use your phone to view the stock market. But its drawback is that only the iOS device users can use it as it is not available for the Android users. It provides real-time quotes and tips for trading, lets you transfer funds online, lets you trade and track equity, commodity, futures, and options, provides the fixed-rate stock broking prices and advantages of research and analysis.
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