Sub broking is very important in the exchange market because the sub-broker act as an intermediary between the stockbroker and client in capital market segments. Your task as sub-broker therefore will be to offer guidance to your clients in buying and selling the stock. It is important to understand that some rules and regulations must be followed and you are also expected to be registered with SEBI. There are many benefits of becoming is a broker franchise or authorized person as discussed below.
Working as a partner in the exchange market with a stock broking franchise in India, helps you get the highest revenue share. When you make some specific amount of money through the process of being a client, the supporting company will get a low percentage of the share will get the hires revenue share and therefore becoming the most benefited person in that process.
The other reason, you should become sub-broker is because you don’t require a lot of capital to get started in that business. This is because most of the times, the franchiser will not ask you for a minimum deposit because only a security deposit is paid to the franchiser.
The other undeniable benefits of being an authorized person in the exchange market is that you get marketing and training support, to begin with. Most of the times the franchiser is always a large organization and therefore the can provide you with also of support that you need when it comes to marketing as well as train you appropriately. The franchiser will most of the times provide you with marketing tools such as banners and leaflets that can help you sell yourself. You don’t have to incur a lot of costs when it comes to keeping yourself with knowledge especially know that they franchiser organizes seminars and other workshops that any people you thoroughly with the knowledge you need to be successful.
In addition to training and seminars, you will also be offered advisory support. To be successful in the stock market, you have to be very up-to-date with relevant information especially on ways you can generate more revenue. The franchiser will offer you advice that is tips and recommendations that can help you support your clients to generate more revenues because it is also the advantage of the parties involved.
Being a sub-broker is also beneficial because anytime there’s a product, service, or an offer from the franchiser, you’ll be always the first person to be aware as they share deep research with you. One of the benefits of being the first recipient of new products, services and offers from the franchiser, is that your client benefit a lot because the access information first then take advantage of it before other people know.