Why Counting Of Sub Broker Franchise Increasing Day By Day In Online Commodity Market? Here is the Procedure of Stock Broking Franchise in India
What is Stock Broking Franchise?
Any Stock Broker or Sub-Broker Franchise is a concept where any SEBI registered Stock Broker can provide its franchise to any company or person willing to follow all SEBI rules and regulations and have a good network of investors to act as a broker on ran and franchiser. The Products, Services, Offers etc. served by the franchise are the same as offered by the trader. Not only this, the sub-broker Franchise can also give extra benefit to their clients that are not offered by the Franchiser. This business works as a brokerage sharing model where the Franchise retains the largest share and the franchise divides low.
Benefits of becoming a share market sub-broker franchise or stockbroker partner
· Exclusive rights for Business Partners.
· 100% Revenue Sharing.
· High Exposure for smooth trading.
· 24*7 Friendly Back office support.
· Call and Trade facility.
· Dedicated Relationship Manager to serve all financial needs.
· Recruitment support provided to hire the best talent In Industry & training provided by experts.
· Same day account open & start trading.
· Best Marketing Support.
· First time in industry share client leads with HNI Franchisee & allows them to deal.
· Any query resolved within 24* hours.
How to Become a Sub Broker Franchise?
How to Become a Sub Broker Franchise? For someone with an interest in the stock market, this is a magical profession. To become a sub-broker franchise, one needs to have a good understanding and background of the stock market and the financial market. Although the stock market understanding is very important and critically, having experience is a great addition as one has more offers/opportunities. The rationale behind this is that some of the major brokers prefer to have an experienced person as their representative sub-broker.
So becoming sub-broker franchise, understanding and experience of the stock market is two essential aspects.
The other necessary and one of the critical aspects is to register with stock exchanges. The reason that this is referred to as one of the critical aspects is that, without having this registration, a primary broker cannot appoint a person as a sub-broker and therefore becomes a prerequisite for becoming a sub-broker.
Although the crucial aspects have been discussed above, some other relevant aspects are the educational qualification, age, decent market commitment, good qualifications, etc. The reason for this is that the main broker would not like someone to represent his company name. Also, a person with a good account is more likely to have a reliable network and therefore grow business quickly.
Registration Process to Start Sub Broker Franchise
After analysing the shared information, we will contact the potential sub-broker franchise to confirm the interest and details provided. We will also contact the candidate’s preferred broker and understand their interest and pass on the candidate’s details.
After that, the candidate and the main broker take the process forward. Before moving on to the next stage, the main broker carries out a detailed background check of the potential candidate to confirm that there are no adverse consequences of making this person a representative of the broking house.
Typically, a representative of the main broker determines an appointment with the candidate to understand his / her interest and expectations of this initiative. During this meeting, the main broker also conveys/explains the expectations the broking house has from the sub-broker.
During this meeting, other aspects such as the product that the sub-broker is interested in, the initial investments, the required infrastructure, the security deposit, are about revenue expectations, sales targets, revenue sharing ratio, cash edge, credit period, break-even period etc.
This is the most essential step of the procedure as the main elements of the business are agreed at this stage. This step may have a few rounds of meetings as it also involves many discussions.
The potential candidate can complete a short form available here which requires the applicant to provide a name, number, e-mail and area of interest. This would help us to connect the potential candidate with the best top broker.
Documents required to set up Sub Broker Business
After agreeing to the terms, the sub-broker franchise is required to submit various necessary documents (listed below) to the main broker. The chief broker’s representative verifies these documents and stores copies of the same for their own records.
The documents that one requires would typically include the following:
1) Identity proof;
2) Address proof;
3) Proof of date of birth;
4) Academic qualification certificates — 10th, 12th, graduation and post-graduation (if any) degrees.
5) Registration certificate from stock exchanges
6) Passing certificates of any stock market-related exams
7) PAN Card
8) Aadhar Card
Eligibility Criteria to Become a Sub Broker Franchise
Typically, the broker houses expect the sub-brokers franchise to have a decent workplace and office where one can get the reasonable number of workstations and also have appropriate seating arrangements for its staff and customers. The sub-broker can own, rent or lease this infrastructure space.
Apart from this, the sub-brokers franchise is expected to keep the main broker’s security deposit. This deposit needs the main broker as a cover against the default that the sub-broker or its customers could go. Also, this deposit is generally reimbursed and is returned to the sub-broker to terminate the business agreement.
With this, readers would now be educated about sub-broker eligibility criteria, the procedure to become a sub-broker franchise and the capital investment that one needs to do to become a sub-broker.
For Sub Broker Franchise you can apply here
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