Top 10 stock broker franchises in India
Written By: Yukta Palekar
If you have a keen eye for stocks and shares, then this blog is definitely for you. Here we will discuss how you can make your interest in the share market a profit business to start as well. Yes, you heard that right. You can also start a stock broker franchise anywhere in India.
About Stock Broker Franchise Business in India
The stock market has evolved rapidly, leading to a variety of investment-related services. Technology has made businesses like stock exchanges and brokers digital, allowing low-cost programs to trade stocks with minimal human intervention. This has led to the development of sub-brokers, who act as a middleman between the broker and the customer.
They typically work for a stockbroker and can help clients with investments and securities dealings. Sub-brokers are anonymous and require a Certificate of Registration from SEBI to operate. They are paid through commission, unlike brokers who are paid via brokerage fees. Sub-brokers can earn more money by sealing more deals. Both types of brokers and sub-brokers play crucial roles in the stock market.
Sub-brokers can benefit from access to stock market data, personal transactions, and self-sustaining trading with other brokers. They can also offer financial advice and strategy services, such as mutual fund distribution and loan options. Additionally, sub-brokers do not need a large initial investment, as their franchisor covers most expenses.
Top 10 Sub Brokers in India
This guide ranks the top 10 best sub-broker franchises in India, allowing you to choose the best option for your needs.
Angel Broking is a Mumbai-based stock broker with over 30 years of experience. With offices in over 150 cities and a sub-broker network covering 500, it offers demat accounts, trading accounts, IPO investments, research reports, and robo-advisory services.
With over 11,000 sub-brokers, Angel Broking provides a diverse range of products and services. The company's largest broking franchise has over 11,000 sub-brokers. The product features a ceramic enamel cavity, auto cook menu, slim-fry technology, pre-programmed Indian recipes, and advanced fermentation technology.
However, it is best for large families and not suitable for small kitchens.
Sharekhan, a leading Indian stock broker, has over 2,700 sub-brokers operating in 580 locations. These brokers offer a range of services, including stocks, derivatives, commodities, currencies, mutual funds, IPOs, investing, and portfolio management.
Sharekhan recognizes the value of sub-brokers for company growth and actively promotes their business. To comply with SEBI requirements, all sub-brokers will be changed to Authorised Persons, registered with exchanges, and subject to the sub-broker model.
The product features scratch-resistant material, auto-defrost, and a 3-year warranty.
3. Zerodha Partner
Zerodha Partner, founded in 2010, is India's leading stock brokerage firm offering innovative trading options for young Indians. With over 3-4 million daily transactions, it contributes to over 10% of retail trading activity. Zerodha's innovative turntable offers excellent cooking uniformity, 26 standard-cook menus, auto-reheat options, and a 1-year warranty on the product, along with 3 years on the ceramic cavity and magnetron.
Motilal Oswal is a popular choice for sub-brokers due to its extensive assistance and diverse business models. The company offers stocks, commodities, currencies, derivative instruments, and investment vehicles like SIPs, mutual funds, and insurance.
With around 1,500 sub-broker offices in over 500 locations, Motilal Oswal's earning potential has doubled. Under new SEBI criteria, all current sub-brokers will be converted to Authorised Persons, with simpler registration procedures and a new franchise given in the name of an Authorised Person.
Hem Securities Ltd. is a group of financial services companies founded in 1981 by Hem Chand Jain. With 35 years of experience, Hem has been an award-winning investment banker in the SME segment, a leading IPO, and mutual fund distributor in India.
The company is one of the best stock brokers and depository participants in India, with a presence in over 20 states. Hem Securities has been recognized by BSE and SKOCH for its excellence in serving customers.
The company is a member of the Derivatives Segment of the BSE and National Stock Exchange of India Ltd. and is also a member of CDSL. Hem Securities procured the highest-ever subscription in an SME IPO across India, amounting to over Rs. 850 crores.
The Hem Group is one of the largest broking networks in India, covering 16 states with over 325 outlets. They offer a robust hitech trading platform, ethical and transparent business practices, and a warehouse of knowledge and research in equities and commodities.
6. ICICI Direct Franchise
ICICI Direct Franchise was established in 2003 to cater to the growing popularity of financial markets and investment corporations. By 2012, the company had 212 physical locations, primarily in Tier 1 cities, and 1,200 franchised units. The franchising strategy was used to cater to Tier II cities, with 428 sites and 1,200 franchised units. ICICI Direct's franchise models are ideal for those looking to start their own business at a low rate.
Adroit Financial Services Pvt. Ltd., formerly a stock broking company, has evolved into a reputable capital market services company, offering a range of services including broking, mutual funds, IPOs, currency derivatives, commodities, depository services, and internet trading.
Established in 1994, the company's key asset is its advisory staff, including Chartered Accountants, Company Secretaries, MBAs, and senior executives. The core management team has a strong academic background, teamwork abilities, expertise, and progressive vision.
8. Idafa
Idafa is a team of consultants who monitor stock markets to generate profits while adhering to Shariah principles. They avoid dealing with companies involved in alcohol, tobacco, vulgar entertainment, lending, borrowing on interest banks, and finance companies. To ensure Shariah compliance, certain financial parameters are required.
These include excluding companies with a trailing 12-month average market capitalization (TTMAMC) greater than or equal to 33, excluding companies with a total debt divided by trailing 12-month average market capitalization, and excluding companies with a sum of cash and interest-bearing securities.
9. Kotak Securities Franchise
Kotak Securities, a leading brokerage firm, has been a pioneer in establishing local retail locations and offering opportunities for sub-brokers to grow their customer base.
With industry expertise, Kotak Securities provides various business partnership models that cater to different needs and expectations. These models include low power consumption, durable metal, a sleek glass turntable, and a 1-year warranty on the product and 4 years on the magnetron.
10. Upstox Partner
Upstox, founded in 2011, aims to make trading more convenient and affordable. It has become one of the most successful financial services firms in India. In 2016, Upstox released its Upstox Pro trading platform, offering a wide range of options including equities, commodities, foreign exchange, currencies, and mutual funds.
The company also offers a large Upstox Partner Programme.
Why Brand Value of a Stock Broker Franchise is Crucial in India?
The brand value of a broker's franchise is crucial for establishing and running a franchise business. The Best Stock Broker Franchise in India provides goodwill and brand value, attracting more Demat accounts and boosting profits. Angel One, Sharekhan, Motilal Oswal, Hem Securities, Idafa, Zerodha, and Upstox are seven brokerage houses with exorbitant brand value that can boost franchise businesses.
Advantages of Starting a Sub-Broker Franchise in India
A sub-broker franchise offers several benefits, including a high revenue share, low investment, marketing and training support, advisory support, and access to new products, services, and offers.
The franchisee receives a small fraction of the brokerage fees collected, while the sub-broker or partner retains the majority. The franchise can be started with a minimum investment of Rs.10,000, and the franchisee is liable for remaining expenditures.
FAQs
Q.1. What is the Cost of Starting a Sub-Broker Franchise in India?
The Best Broker for Sub Broker ships in India offers a minimum franchise cost of Rs.50000 for master franchises and Rs.1 lakh to Rs.2 lakh for sub-broker ships. The franchise fee is refundable and varies from broker to broker. Angel One, Zerodha, IIFL, Hem Securities, and Upstox provide the most reasonable franchise costs, making them suitable for sub-broker ships.
Q.2. How Can I Become A Sub-Broker in India?
To become a sub-broker, candidates must have a high school diploma or a bachelor's degree, financial market awareness, computer skills, strong communication, up-to-date knowledge of stock market events, and fundamental models, and a certificate from the National Institute of Standards & Technology. They must also be excellent managers to manage franchise offices and staff.
Q.3. What is the qualification for becoming a sub-broker in India?
Before becoming a sub-broker in India, one must pass 10+2, be well-versed in financial markets, have computer skills, and possess communication, management, and leadership skills. They should understand current issues and be able to advise customers on various financial products. Additionally, they must conduct timely transactions with customers. SEBI permits NISM modules for equities, mutual funds, commodities, and futures.
Q.4. What are the requirements of becoming a sub-broker in India?
To become a sub broker, individuals need a PAN card, bank statement, diploma, work proof, and proof of address. Firms need PAN cards, proof of business address, board resolutions signed by all directors, verification of residences, complete academic qualifications, and a cancelled cheque. Different microwave brands offer various features and accessories.
Q.5 How do sub-brokers make money?
Sub-brokers earn money by serving as middlemen between stockbroker firms and customers, earning more if they have a large and high turnover customer base, as each transaction compensates them with a commission.
Q.6. What is the function of a sub-broker?
A sub-broker assists customers in buying and selling shares on a stock exchange, providing them with information on various securities. They forward trading orders to affiliated trading members, helping stockbrokers increase business volume by buying, selling, and dealing with securities, and expanding their business by attracting new clients and reinvesting in existing ones.
Q.7. Can a career as a sub-broker be profitable?
If a sub-broker is an appropriate broker, he or she may receive around 60% of the profit generated by a broker on any given transaction. The better it is for a sub-broker, the more established the brokers and their systems are.
Choosing the right partner is critical to making a career as a sub-broker.
Q.8. What is the distinction between a broker and a sub-broker?
A stock broker is self-contained, whereas a sub-broker connects the major stock broker with their consumers.
To Conclude,
A sub-broker has emerged due to increased demand for brokers, allowing them to perform similar functions without registering as a stock market dealer. When choosing a sub-broker franchise, consider factors such as licenses, credentials, and customer list. The best sub-brokers in India are constantly acquiring skills and modernising.
FranchiseBazar offers opportunities in microfinance, NDFC, Bajaj finance, and other Indian bank franchises. For those interested in starting a stock broker franchise in India, feel free to share your comments and suggestions in the comments section.
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 risks and discretion. FranchiseBAZAR or its Directors, disclaim any liability or risks arising out of any transactions that may take place due to information provided in this blog.
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