Sub Brokers is a SEBI authorized person who works on behalf of trading member
A sub-broker is an agent of a stockbroker. He introduces new clients to the brokers. The sub-broker assists clients in opening accounts, trading terminals, calls, trading services and solving problems, etc.
The sub-broker is the owner of the broker's franchise. The franchise model is popular because a stockbroker cannot have branches in every city in the country. To own a stock broker franchise, the sub-broker must have a good physical location for an office. It is a valuable business model.
A sub-broker must know operations and finance and be able to manage a team. A sub-broker is the face of their stockbroker partner and ensures that they provide comprehensive value to their clients. A sub-broker receives a particular profit share from the broker.
A person or entity can become a sub-broker by obtaining a certificate of registration from SEBI. It is mandatory for a sub broker to agree with the broker as specified by SEBI.
|
No. |
BROKER |
SUB-BROKER |
|
1 |
It is a large entity. |
It is part of the brokerage business that helps brokers expand their client base |
|
2 |
It is registered as a trading member of the stock exchange. |
It is registered with SEBI as a sub-broker. |
|
3 |
High Investment required |
Low investment required |
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