Written By: Payal Das

The Indian stock market is flourishing, and as retail participation surges, the demand for robust trading platforms grows. Zerodha, a name synonymous with innovation and transparency in the brokerage industry, offers a fantastic franchise opportunity through its associate program. 

If you're contemplating investing in a Zerodha franchise in 2025, here's a comprehensive guide to get you started.

Sub-Broker Franchising: A Lucrative Opportunity

Sub-broker franchising is an arrangement where individuals or entities partner with a stockbroker to offer trading and investment services under their brand. As a sub-broker, you serve as a go-between for the brokerage company and its clients, taking a cut of the profits.

This model is particularly attractive for those with a strong financial network or expertise in the stock market. It requires minimal capital investment, as the infrastructure and technology are provided by the broker. 

Success as a sub-broker depends on your ability to acquire and retain clients, leveraging the parent broker's reputation and support for growth.

Zerodha: Redefining Stock Broking in India

Zerodha, established in 2010, is India's largest and most trusted stockbroker, celebrated for revolutionizing the brokerage industry with its innovative, technology-driven approach. Known for its low-cost, flat-fee model, Zerodha democratized investing, making it accessible to millions of Indians. 

Its flagship platforms, Kite for trading and Coin for mutual fund investments, offer a seamless user experience. Zerodha’s emphasis on transparency, education through initiatives like Varsity, and robust customer support have made it a market leader. 

With over 10 million clients and a reputation for innovation, Zerodha continues to reshape how Indians invest, trade, and grow their wealth.

Why Choose Zerodha?

Before diving into the steps, it's essential to understand why Zerodha is a top choice for franchisees:

1. Industry Leader: Zerodha is India's largest stockbroker, with millions of clients and a reputation for transparency.
2. Technology-Driven: Its cutting-edge trading platforms like Kite and Coin set it apart from competitors.
3. Cost-Effectiveness: Known for its flat brokerage model, Zerodha has revolutionized trading in India.
4. Supportive Ecosystem: The company provides extensive support to its partners, ensuring mutual growth.

What is the Zerodha Franchise?

Zerodha offers a franchise model under its Partner Program, also known as the Zerodha Associate Program. As a partner, you refer clients to Zerodha and earn a share of the revenue they generate.

Key Features of the Zerodha Franchise:

• Revenue Sharing: Partners earn up to 50% of the brokerage revenue generated by their referred clients.
• Low Investment: There’s no need for hefty upfront costs, making it accessible for individuals and small businesses.
• Marketing Support: Zerodha equips its partners with resources and tools to grow their client base.
• Technology Access: Partners can leverage Zerodha’s platforms and tools to provide exceptional service to clients.

Zerodha Sub Broker Franchise Cost

Zerodha's Partner Program, often compared to a franchise model, allows individuals or businesses to earn by referring clients to Zerodha. It operates under the Authorised Person (AP) framework set by SEBI. The Zerodha franchise cost includes:

1. SEBI Registration Fee: ₹2,000-₹3,000 (one-time).
2. Refundable Security Deposit: Amount varies but is relatively nominal.
3. No Infrastructure Costs: Zerodha does not require physical office setup or traditional franchise investments.

Partners earn a percentage of the brokerage revenue generated by their referred clients, making it a cost-effective and high-earning opportunity for financial professionals or entrepreneurs in the stock market ecosystem.

Steps to Start a Zerodha Franchise in 2025

1. Understand the Eligibility Criteria

Before applying, ensure you meet Zerodha's basic eligibility requirements:

• You ought to be well-versed in financial markets.
• Prior experience in trading or financial services is an added advantage.
• A strong professional network can significantly boost your success.

2. Apply to the Partner Program

• Visit Zerodha’s Partner Program page.
• Fill out the application form with your details, including your professional background and reasons for joining.
• Send in all necessary paperwork, including identification, proof of address, and financial records.

3. Get Trained

• Zerodha provides training on its platforms and the stock market basics.
• Use this opportunity to familiarize yourself with tools like Kite and Console to better serve your clients.

4. Start Client Acquisition

• Leverage your network and social media to reach potential clients.
• Highlight Zerodha’s benefits, such as low brokerage, intuitive platforms, and extensive support.

5. Maintain Client Relationships

• Offer consistent support to your clients to build trust and ensure long-term engagement.
• Keep them updated with Zerodha’s new features and market insights.

Also Read: ‘How To Start A Zerodha Franchise In India 2024?’

Tips for Success as a Zerodha Franchisee

1. Build a Niche Audience 

• Focus on a specific audience, such as first-time traders, experienced investors, or mutual fund enthusiasts. Catering to their unique needs can help you stand out.

2. Leverage Digital Marketing

• Create content around stock trading, market trends, and Zerodha’s offerings.
• Use platforms like YouTube, Instagram, and LinkedIn to educate and engage potential clients.

3. Stay Updated

• Regularly update your knowledge about market trends and Zerodha’s evolving services.
• Participate in webinars and training sessions offered by Zerodha.

4. Offer Value-Added Services

• Provide educational resources like webinars, newsletters, or market analysis to your clients.
• This enhances your credibility and helps retain clients.

5. Track Performance

• Use Zerodha’s dashboard to monitor your referred clients’ activity and earnings.
• Adjust your strategies based on these insights.

Zerodha Franchise Benefits

Zerodha franchise benefits includes:

• Brand Reputation: Zerodha’s name carries weight in the industry, making it easier to gain client trust.
• Low Overheads: You don’t need to set up an office or invest heavily in infrastructure.
• Recurring Income: As long as your clients trade, you continue to earn.
• Scalability: The more clients you refer, the higher your earnings potential.

Challenges to Consider

1. Market Competition

• With numerous brokers offering partner programs, standing out requires effort and innovation.

2. Client Retention

• Retaining clients in a competitive market demands consistent engagement and value addition.

3. Regulatory Changes

• The financial industry is heavily regulated. Stay informed about compliance requirements.

Zerodha Partner Program vs. Other Broker Franchises

Here’s how Zerodha stacks up against other broker franchises:

Features Offered by Zerodha

• Revenue Sharing: Up to 50%
• Initial Investment: Low to None
• Technology Support: Advanced Platforms
• Training & Support: Extensive

Features Offered by Other Broker 

• Revenue Sharing: 30%-40%
• Initial Investment: Moderate to High
• Technology Support: Varies
• Training & Support: Limited

See also: "India's Top Stock-Broker Franchises"

Zerodha Partner Program - Expected Revenue

Zerodha, India’s largest and most innovative stockbroker, has not only disrupted the brokerage industry but also created a lucrative opportunity for franchisees. Its technology-driven platforms, flat-fee model, and transparent business practices attract millions of investors and traders, creating consistent revenue streams. 

This offers franchisees a fantastic chance to enter a developing sector with substantial earning potential.

Understanding Zerodha’s Revenue Model

Zerodha operates on a low-cost, flat-fee brokerage model, charging a flat ₹20 per trade for intraday and options trading while offering zero brokerage on equity delivery trades. This cost-effective structure has drawn millions of retail and institutional traders, contributing to the company’s profitability.

Franchisees benefit from Zerodha’s revenue-sharing model, which allows them to earn up to 50% of the brokerage generated by their referred clients. Since Zerodha experiences a high volume of daily transactions and a growing client base, franchisees can generate substantial earnings through recurring revenue from active traders.

Profit Potential of Zerodha Franchise

1. Recurring Income Model The revenue-sharing structure ensures franchisees earn as long as their referred clients trade. This creates a recurring income stream, making it possible to achieve sustained profitability over time.

2. Low Overheads Zerodha’s franchise model doesn’t require significant upfront investments in infrastructure or office spaces. Franchisees primarily need a strong network and a small team, which keeps operational costs low and boosts profitability.

3. Market Opportunity India’s stock market participation is still below 5% of the population, indicating vast untapped potential. As awareness and digital accessibility improve, Zerodha franchisees stand to benefit from a growing client base.

Expected Profit Margins and ROI of Zerodha Franchise

1. Revenue Sharing: Franchisees typically earn between 30% to 50% of the brokerage generated by their clients, depending on their agreement with Zerodha. For example, if your clients generate ₹1,00,000 in monthly brokerage, you can earn ₹30,000 to ₹50,000 as commission.

2. Profit Margins: Since the operational costs are low, the majority of the revenue earned translates into profit. Margins can be as high as 60%-70%, depending on your client acquisition and retention strategies.

3. Return on Investment (ROI):

• Initial setup costs are minimal, making the break-even point achievable within a few months of consistent client acquisition.
• A well-established franchise can expect an ROI of 200%-300% within the first 2-3 years.

Maximizing Profit of a Zerodha Franchise

1. Focus on Active Traders Targeting traders who engage in intraday or derivatives trading can significantly boost your brokerage earnings due to higher transaction volumes.

2. Leverage Digital Marketing Use platforms like YouTube, Instagram, and LinkedIn to attract new clients by creating content around stock market education and Zerodha’s features.

3. Client Retention Offer personalized support and educational resources to ensure clients remain active, leading to sustained revenue generation.

4. Upselling and Cross-Selling Introduce clients to additional Zerodha services, such as Coin (for mutual funds) or Varsity (for financial education), to enhance client engagement and trading activity.

Conclusion

Starting a Zerodha franchise in 2025 can be a rewarding venture if approached strategically. The combination of Zerodha’s market leadership, low-cost model, and supportive ecosystem creates a unique opportunity for aspiring entrepreneurs. By understanding the market, leveraging Zerodha’s resources, and focusing on client relationships, you can build a successful franchise.

If you’re ready to embark on this journey, take the first step by applying to Zerodha’s Partner Program today. You could be one click away from realizing your entrepreneurial dream!

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.