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Sub Broker Eligibility

Sub Broker Eligibility

A Sub broker is  an  agent from the broker's side, which works for the client on its behalf. The sub broker works as a link between the stock broker and the client. A stock broker hires a sub broker to handle several responsibilities like sourcing of the clients, providing various services and for the management of the clients too. In return a sub broker gets a portion of the fees and charges which a stock broker collects. A stock broker can have a wide chain of sub brokers across different countries, which provide him clients.

How to become a sub broker in India?


To be a sub broker in India you require the listed qualities /eligibility.

Educational qualifications

The person who has passed their Higher secondary board examinations (class 12) can look forward to being a sub broker  in India. But the person should have completed the certification exam from the National Institute of Securities Markets (NISM). The NISM study teaches the equity, derivatives market and the mutual funds too. The certification from the NISM is managed by the SEBI (Securities Exchange Board of India).

Work experience and technical knowledge

One should  be definitely registered from SEBI and local stock exchange before applying to be a share markets sub broker. And if the person is eligible for that criteria then, they have to search for the right partner (stock broker) and have to submit the application. But one should keep in mind that they have to pay an initial amount to the stock broker once their application is approved by the stock broker. The amount that should be pre-submitted varies from broker to broker and it's negotiable too.

Ease of setting up business

The pre-submitted /initial amount is low and the fees for registering under SEBI and local stock exchange is also affordable for the applicant. The general /regulatory requirements are also low as well. And anyone who has passed their Higher secondary examination can apply for the sub broker category in India and the NISM certification is mandatory for it.

Support from partner broker    

It's not that easy to tie up with the perfect stock broker. So, one should be extremely cautious while choosing the perfect stock broker for themselves.

Sub Broker Business Model

A sub broker business model depends on equalizing  the gap between the limited funds and the growth of the market. A share markets sub broker accepts the resources from the broker including investment amounts, strategies and miscellaneous facilities and utilizes them for helping clients and making huge profits in their investments.

Generally, the sub brokers arrange the clients for the stock brokers and in return their business franchise provides them great profits as per their experience. The sub broker business model has now extended from the secondary market equity business to a complete assortment of services spanning few financial avenues. Sub brokers generally suggest their clients about equities, commodities, currency, mutual funds, PMS and much more.

The income of a sub broker depends on the number of clients and the amount of profit they provide to the stock broker by their experience and knowledge.

How much does a sub broker earns in India?


Here we will get to know about the factors which effects the earning of a sub broker /Authorized person:

  • Choosing the right broker - We know the income of a sub broker depends on the sub broker commission, so one should definitely do a lot of research before choosing the broker for themselves.
  • Support and infrastructure - The other most important factor that affects the sub brokers income is the kind of infrastructure and facilities that a broker provides. It will be hurdleful for a sub broker to bring clients in the lack of proper technology and instruments and so, it will definitely affect the income.
  • Knowledge - It's the most important /influencing factor if we have to know about a sub broker's income. Knowledge is the most crucial factor contributing to the income of a sub broker. The more knowledgeable sub broker would surely earn more.
  • Costs - How much a sub broker would earn also depends on the cost. There are two types of expenses - capital cost and working cost. Some maybe fixed working costs like deposits collected  with the broker and registration charges and many other kind of charges.
  • Products offered by the broker - If the broker provides better products to the sub broker  then he /she will be able to attract/allure more clients. This will boost the earnings of both broker and sub broker.

Generally, the earning of a sub broker in India ranges between ₹1,00,000 to &₹7,00,000 along with an annual salary of ₹3,50,000 lakhs. The salary estimates are based on some general research and can vary in  present time. The estimation can not be implemented on every organization or broker because we know every sub broker has different knowledge, experience and information anf due to all these the salary varies from person to person (sub broker)

Wrapping Up


A person who has passed their Higher secondary examination can be a sub broker in India. But the certificate of NISM (National Institute of Securities Market). It should be registered under SEBI (Securities Exchange Board of India) and local security exchanges too.

We got to know about the business model of sub brokers, how they do jobs. Their process of working and much more.

Sub brokers franchise cost and sub brokers franchise security cost varies from organization to organization which we got to know from it.
At last, we learnt the factors that affect the earnings of a sub broker like, choosing the right broker, support and infrastructure, knowledge, cost and products offered by the broker. The common earning of a sub broker ranges between ₹1,00,000 to ₹7,00,00 with annual salary of about ₹3,50,000.

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