Eligibility to Become A Sub Broker

A sub broker is a representative from the broker’s side who works on behalf of the clients. The sub broker acts as a bridge between the stockbroker and the customers. A stockbroker engages a sub broker to help with a variety of tasks, including client sourcing, delivering various services and looking into overall client administration. In exchange, a sub broker receives a percentage of the fees and charges collected by a stockbroker. A stockbroker can have a large network of sub brokers to help them with their clients.

A minimum qualification of completion of grade XII or HSC is required to become a sub broker. A few brokers, on the other hand, may ask for at least a bachelor’s degree before hiring you as their sub broker. As a sub broker Your financial market understanding must be extensive. You can take a variety of certification exams to get eligible to work for a reputable broker.

How does one go about becoming a Sub Broker in India?

To own a sub broker franchise in India, you must possess the qualities/eligibility indicated below.

  • Educational qualifications
  • According to SEBI, in India, a person who has passed their Higher Secondary Board Examinations (class 12) can open a sub broker franchise with any SEBI registered stock broker.
  • However, additionally the individual must have passed the National Institute of Securities Markets’ certification exam (NISM). The NISM study also covers the stock market, derivatives market, and mutual funds. The SEBI is in charge of the NISM certification (Securities Exchange Board of India).
  • Work experience and Technical Knowledge
  • Before applying to be a share markets sub broker, one must be registered with SEBI and the local stock exchange.
  • If a person meets those requirements, they must then seek out the appropriate partner (stockbroker) and file an application.
  • However, once their application has been granted by the stockbroker, they must pay an initial payment to the stockbroker.
  • The amount that must be pre-submitted varies by broker, and it is also negotiable.
  • Ease of Setting Up a business
  • The pre-submitted/initial amount is minimal, and the expenses for registering with SEBI and the local stock exchange are likewise low.
  • In addition, the general/regulatory requirements are minimal.
  • In India, everyone who has passed their higher secondary test is eligible to apply for the sub broker category, which requires NISM certification.

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Sub Broker Business Model

A sub broker’s business model is based on bridging the gap between restricted finances and market growth. A stock market sub broker accepts the broker’s resources, such as investment amounts, methods, and other services, and puts them to work for clients to help them make enormous gains on their investments.

According to their experience, sub brokers often assist stockbrokers in finding clients in exchange for considerable revenue from their business franchise as a sub broker franchise.  The sub broker business model has evolved from secondary market equity to a full range of services across a variety of financial outlets. Sub brokers frequently advise their clients on –

  • Commodities
  • Equities
  • Mutual Funds
  • Currency
  • Other Financial Instruments

The amount of profit a sub broker provides to the stockbroker is determined by the number of clients and the amount of profit they provide through their experience and knowledge.

Owning a Sub brokerage franchise is becoming more popular in India as more people realize that if you are excellent with numbers, you could have a wonderful potential to make money. To become a sub broker, you’ll need entrepreneurial abilities that are critical for business growth and monthly target achievement. To get the company through the sub broker franchise, several organizations employ their experience, efforts, resources and talent base. As a result, the franchisee may sell its goods and services in accordance with the brand or trademark model.

Factor Influencing Sub Broker’s Earnings in India

As a sub broker franchise owner, your earnings are also influenced by the products you offer. These could be currencies, stocks, initial public offerings (IPOs), mutual funds, and commodities. The more your range, the broader your customers and the greater your chances of making good profits. We will learn about the things that influence a sub broker’s/authorized person’s earnings in this section:

  • Support and Infrastructure

The type of infrastructure and facilities that a broker provides is another crucial aspect that influences a sub broker’s profits. Due to a lack of appropriate technology and instruments, it will be difficult for a sub broker to attract clients, which will have a negative impact on income.

  • Choosing the Proper Broker

As we all know, a sub broker’s revenue is based on commission, thus one needs to perform extensive research before selecting a broker.

  • Costs

The amount a sub broker earns is also determined by the costs involved. Capital and operating costs are the two categories of expenses. Some working costs may be set, such as deposits with the broker, registration fees, and a variety of additional fees.

  • Acquired Knowledge

If we need to know about a sub broker’s earnings, knowledge is the most crucial/impacting component. The most important component in a sub broker’s revenue is his or her knowledge. The sub broker franchise owner with more experience would undoubtedly earn more

  • The Broker’s Products

If the broker offers superior products to the sub broker, he or she will be able to attract/allure more clients. Both the broker and the sub broker would benefit from this.


In India, a person who has completed their higher secondary education can work as a sub broker. However, the NISM certificate (National Institute of Securities Market) is necessary with SEBI (Securities Exchange Board of India) and local security exchanges. We learned about sub brokers’ business models and how they handle their tasks. 

The cost of a sub broker franchise and the cost of sub brokers franchise security vary from broking company to company. We know that there are various aspects that influence a sub broker’s profitability, such as – 

  • Support and Infrastructure
  • Selecting the Correct Broker
  • Costs Involved
  • Acquired Knowledge
  • Broker’s Products Offerings

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