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Stockbroking in India has become one of the most vital aspects of effortless trading. However, the stock market includes numerous financial instruments with different structures and functions. As a result, the stockbroking business also includes numerous roles to assist investors looking to invest in different financial instruments. Two such important roles are Authorised Partners and Remisiers.
Both terms are often used interchangeably, although there are some subtle technical differences between the two. Learning about Remisier vs Authorised Partner is essential, especially if one wishes to start a career in the same.
Brokerage firms require clients so they can function. To find new clients, brokerage firms hire individuals as independent agents. These are Remisiers. Hence, the main function of a Remisier is to source new clients for a brokerage. Remisiers receive a percentage of the sales conducted as brokerage as earnings. Remisiers must enlist within a stock exchange to get hired by brokerage houses.
An Authorised Partner is not an independent agent but a brokerage firm employee. They act as extended branches of a brokerage. Their functions include various things, from acquiring new clients for the brokerage to finalising trading on the client’s behalf. Their role also includes problem-solving and client management.
An Authorised Partner functions similarly to a broker but works as the middleman between the customer and the main broker.
While a stockbroker is a middleman between an investor and the stock exchange, an Authorised Partner is the middleman between the stockbroker and the investor. Let us discuss the differences between these two types of intermediaries in detail:
There are differences between Authorised Partners and remisiers regarding their office and business infrastructure. Authorised Partners typically require business infrastructure like an office space of their own. This may be a prerequisite of some brokerage firms when Authorised Partners wish to work with them. There is no such need for a Remisier.
A significant distinction between a Remisier and an Authorised Partner is the amount they earn, with Authorised Partners earning more than remisiers. An Authorised Partner has more responsibilities than a Remisier regarding their clients, earning up to 60% brokerage sharing. On the other hand, a remisier’s sole responsibility is to solicit clients for a stock brokerage.
An Authorised Partner has a broader role in stock brokerage. They are responsible for soliciting clients and offering all other brokerage services. They take an active part in trading on behalf of the clients, aiding them in market research and broadening their knowledge in general. A Remisier does not possess these rights.
This is why an Authorised Partner’s job requires much more time commitment and involvement and remains full-time. A remisier’s part-time job allows for running other businesses on the side.
Licensing is another factor. The licensing regulations between these professions vary. Enlistment with the Securities and Exchange Board of India was mandatory for Authorised Partners, but this requirement has changed.
However, depending on the brokerage firm, there may be onboarding criteria for Authorised Partners. On the other hand, a Remisier must enlist with a stock exchange before they can begin soliciting clients for stock brokerage firms.
IIFL Capital Services Limited is one of the leading players in the Authorised Partner franchise industry, with over a million accounts opened since its inception. The company provides execution, advisory, and research services across products like equity, F&O, Commodity & Currency, and Mutual Funds. IIFL Capital Services Limited is also one of the top AIF, PMS, and Mutual Funds distributors. You can visit IIFL’s website to join its Authorised Partner and Remisier program.
By choosing IIFL Capital Services Limited as a business partner, you also enjoy several other benefits, such as a high revenue-sharing model, personal assistance, personalised branding, investor awareness programs, and access to a robust back-office infrastructure and risk management systems. As an Authorised Partner with IIFL Capital Services Limited, you can access an extensive product range that includes equities, mutual funds, NCDs, bonds, and other insurance products. With more than 15,000 franchise partners and over 40 lakh customers, IIFL Capital Services Limited’s Authorised Partner program is, without a doubt, one of the best Authorised Partner franchise models in India.
Many stock brokerage firms offer a partner program where one can apply as an Authorised Partner or Remisier. For instance, IIFL Capital Services Limited has a Partner’s Program you can use to onboard clients completely online. Before applying to become an IIFL Authorised Partner or an IIFL Remisier, assess which option is right for you. Both professions come with their set of pros and cons. To know which is for you, you should look at how much involvement you want in your job and whether you wish to carry out other businesses alongside your position. If the latter is the case, being a Remisier is more suited to your lifestyle.
Q.1: Can I become both a sub-broker and remisier at the same time?
Ans: No, you can’t become a sub-broker and remisier at the same time. As the regulations and responsibilities for both are different, you can only apply for either of them.
Q.2: Does a sub-broker earn more than a remisier?
Ans: Yes, a sub-broker earns more than a remisier as the sub-brokers job is full-time and comes with more responsibilities. Sub-brokers can earn up to 60% of the brokerage.
Q.3: How much initial investment is required to become a sub-broker or a remisier?
Ans: For a sub-broker, initial investment ranges from Rs 50,000 to Rs 3 lakh. In contrast, there is no requirement for an initial investment to become a remisier.
Become a Partner & Earn up
to 1 Lakh* per Month!
Become a Partner & Earn up
to 1 Lakh* per Month!
