Zerodha Sub broker franchise cost is quite lucrative to attract potential partners to join the firm. The discount broker has had registered a steep rise in its growth in the last two years, both in terms of active clients as well as partners.
The headquarters of this discount broker is located in the city of Bangaluru and the broker is well-known for providing top quality products and services to its customers.
Zerodha is India’s largest stock broking company if we consider its retail client share. In terms of trading volume with the renowned stock exchanges of India, it occupies the first position as well.
This has been possible because of its innovative technologies and progressive pricing. Clients can expect the lowest brokerage charges and huge benefits with Zerodha Franchise.
It has been in the stockbroking industry for less than a decade, since August 2010, but has still been able to create an impressive impact on the market.
It was initiated with an aim to provide innovative and unique solutions at a cost that everyone can easily afford and trade conveniently.
Zerodha Sub Broker Franchise Costs Details:
There are two business models offered by Zerodha Franchise, i.e the sub-broker model and the Referral model. The stockbroking house enables trading in various segments such as Equity, Derivatives, Currency, Mutual funds, IPO, Commodities, Government securities.
Here is the sub-broker franchise cost for different models of Zerodha:
1. Referral model cost:
The Referral model doesn’t involve any major functions and doesn’t need any initial investment also. The revenue share in this model is based on the number of clients a person refers to and the ones among them who start trading with Zerodha.
2. Initial Cost:
All the stockbrokers charge an initial investment for the sub broker business model and so does Zerodha. The reason why this is done is to ensure safety against any delay in the payment or non-payment of an amount or any wrong practices of the sub-broker
The initial investment is refundable in nature and the sub-broker gets back the amount when he decides to quit the partnership business.
The security deposit, in this case, is ₹11000 along with one-time registration charges of ₹1500 which is non-refundable in nature.
3. Infrastructure Cost (Optional):
Being the representative of the stockbroker, a sub-broker is responsible for carrying out the transactions on its behalf. therefore he needs to maintain high standards just like the main broker.
This can be manifested in the form of a spacious working space from where all the business operations will be carried out.
It must be situated in a prime location in the city where people can easily find it. In case it is located in a remote area, a lot of time will be consumed in finding the office and the potential customers may lose interest in the process.
The office needs to have a decent minimal interior decor with hygienic condition so that it will be aesthetically appealing to the customers who are going to visit the office for the first time.
All these things need an infrastructure investment besides the security deposit. Depending on the choice of your interior decor, you will be charged.
Besides this, you need to have a telephone connection, stable internet connection and a desktop or laptop for carrying out the business processes which are online in nature.
So, you should be prepared for a fixed minimum cost every month which involves, rent of the office in case it is not set up by you, telephone bills, internet charges, and electricity bills.
After reading the cost and its benefits, a question about How to Become a Sub Broker in Zerodha? the question might have stuck in your mind.
It is an easy process to become a sub-broker with them by just knowing and choosing the program that suits your requirement.
Zerodha Franchise Sub-broker Revenue Sharing:
After you start your business operations, you can get a revenue share depending on the business, the clients are able to generate every month. The sub-brokers are responsible for carrying out all the major works related to the acquisition, onboarding and supporting the clients, so they are given a decent revenue share.
This is done based on different revenue sharing slabs set by the broker, which are enumerated below:
When the clients generate a brokerage that is below ₹1 lakh, then the partner or sub-broker will be entitled to an amount of 40% of the generated brokerage and the remaining 80% will be with Zerodha.
Suppose the brokerage generated lies in the range ₹1 lakh-₹3 lakhs, then 50% of the amount will be given to the sub-broker and 70% to Zerodha.
If the brokerage is in the range of ₹3 lakhs – ₹5 lakhs, then he can enjoy 60% of the brokerage generated and Zerodha will get the remaining 60%.
When the brokerage crosses ₹5 lakhs, then the total brokerage will be equally divided between the sub-broker and the main broker, i.e in the 70% ratio.
With this, we would like to wrap up this review piece on Zerodha Sub-broker Franchise cost details.
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.
Just fill in some basic details in the form below to get started:
If you wish to learn more about other stockbroking business partnerships, here are a few references for you: