How Does Sub Broker Franchise Work?
The stock market is witnessing a record-breaking opening of Demat accounts. People are investing in various financial instruments to earn better returns than non-market-linked investment instruments. However, with the shift to online trading platforms, there has been a technology gap for individuals who are not well-equipped with online trading platforms. Hence, to give them a physical approach and assist them in making informed financial decisions, the role of sub-brokers has become the most vital. Furthermore, given the demand for sub-brokers, the sub-broker franchise has become an ideal business opportunity. However, there are numerous factors involved. It becomes important to understand how does sub-broker franchise works.
This blog will help you understand everything there is to know about a franchise as a sub-broker, along with its operations.
What’s a Sub Broker’s Role in a sub-broker franchise?
The sub-broker business model is one of the ways to allocate products and services to its clients locally through this franchise chain. This helps clients in that field by offering all the product and service details in all segments such as equity, currency, commodity, future and options, etc. A “sub-broker” is similar to an agent that sets the investors and is not a stock exchange trading participant but assists them in dealing with shares on their behalf. The franchise is thus a three-party agreement between the stockbroker, the sub-broker, and the client.
Understanding the sub-broker franchise in India
A franchise for a sub-broker is not a simple task where only calls and promotional emails are handled. The role of a sub-broker is not limited to offering the best stock offers to clients; it requires, in reality, an appetite for risk and unpredictability. Ask what all the threats faced by a sub-broker are. Some of the common threats for any person who chooses to get a sub-broker certification are the possibility of falling share prices, increased inflation in the region, and growing scepticism. However, the same threats faced by the investors, show clearly how important it is to seek the assistance of sub-broker for guidance in the stock market.
Note that a vast network of market traders, shareholders and many more individuals are seen in the capital market. Therefore, it is important for this group to have proper knowledge as well as qualification.
Key Benefits Of Being a Sub-Broker Franchise
Share of High Sales: The sub-broker retains a high percentage of the client-generated brokerage; the franchiser gets a low percentage of the brokerage.
Investment Sector: A franchise for a sub-broker can be started with a minimum investment sum of Rs.50,000, which is fully refundable. Only a security deposit is charged to the franchiser to cover all the franchiser’s expenses. The franchiser under which the sub-broker franchise is started doesn’t even request a minimum deposit in some situations.
Support from Marketing & Training: The franchiser also supports the sub-broker with all kinds of marketing assistance, such as supplying posters, flyers, and branch hoardings. They also arrange workshops to educate their broker partners on various aspects of the business to ensure they know how does a sub-broker franchise work.
Advisory Support Program: Some franchisers also provide their sub-brokers with guidance, inventory tips & suggestions to help benefit their clients, increase sales and ensure the operations of a franchise for a sub-broker are optimum.
Item, Service & Deals: The sub-broker can also use any new products, services or deals introduced by the franchiser. This allows the sub-broker to continue to involve their clients with new services.
What Are The Conditions To Become a Sub-Broker?
The candidate should be 12th pass at a minimum, but ideally, a person should be the holder of a graduation degree.
The candidate should be 12th pass at a minimum, but ideally, a person should be the holder of a graduation degree.
The candidate should have knowledge and understanding of capital markets and should have expertise in the management of transactions relevant to general finance.
The candidate should have a simple knowledge of computers.
The candidate should have strong communication skills to convince the client to do business.
The candidate should have recent information related to financial, economic policy and other related subjects that could impact the stock market.
The candidate should have a basic knowledge of equity, commodities, mutual funds, currencies, etc. is a must.
To take care of the office and staff, the person should also have good managerial abilities.
Why choose IIFL for opening a sub-broker franchise?
IIFL is one of the leading players in the sub-broker franchise industry, with more than a million accounts being opened since its inception. The company provides execution, advisory, and research service across products like equity, F&O, Commodity & Currency, and Mutual Funds. IIFL is also one of the top distributors of AIF, PMS and Mutual Funds. You can visit IIFL’s website to know the working of a sub-broker franchise and how you can open one with IIFL.
Conclusion
The franchise for a sub-broker in India is rising day by day since many people have recognised that if you are good with numbers, then, you may have a great opportunity to make money. You need entrepreneurial skills that are very relevant for business growth and the achievement of goals every month. Different organisations use their efforts, experience, skills and resources to get the company through franchises such as the IIFL franchise. Therefore, the franchisee shall be allowed to market its goods and services in compliance with the brand or trademark model.
Ans: You will need:
A good track record and client base in the financial circuit.
No particular need of experience (freshers can apply to) in selling financial products as a Member Broker /Sub-broker, Remissier, Mutual Fund distributor, Insurance advisor, Financial Planner or an Employee of a Broker/Sub-Broker.
Ans: The financial products are:
- Equities
- IPOs
- Mutual Funds
- PMS
- NCDs
- Bonds
- Insurance Products
- Fixed Deposits
Ans: AAA “Advisor Anytime Anywhere” enables you to invest in Equity, Insurance, Mutual Funds, Bonds/NCD, IPOs & Fixed Deposits while giving more features like SIP Basket and Goal Planner, Client Portfolio, Transfer your mutual funds to IIFL, Smart Save, etc.
