As we all know, broker is an important person if you are an investor in stock market. Since, broker is the only person that acts as a middlemen in the process of buying and selling the shares or stocks. Thus, broker is considered as a person of great significance or value since you cannot perform trading operations without a broker.
For the folks who do not know the meaning of broker, let’s talk about who actually a broker is. A broker is a firm or an individual that charges a fee or say commission for executing buy and sell orders submitted by an investor. He acts as an intermediate agent between you as a client and the exchanges (for example: BSE Bombay stock exchange and NSE national stock exchange). A broker charges the client (investor) some money for performing the transactions of buying and selling the stocks which is usually termed as ‘brokerage fee’. They charge the clients for providing services such as advising on the transaction, negotiations as well as delivery along with buying and selling the stocks. Now that we are clear with who a broker is. Let’s have a deeper look at other people that are involved in stock market business. One of the person or firm that is equally involved in the world of stock market is a sub-broker. Some of the Famous Brokerage Franchises in India are Zerodha, Tradebulls, Angel Broking Franchise and Sharekhan Franchise.
According to the business dictionary, a sub broker is an intermediary broker, from whom another broker acquires the reinsurance that needs to be placed. Meaning that, a sub broker is an other broker (an individual or a firm) to whom the task of broker is passed on. Note that, the legal rights or privileges of clients (here investors) are not affected in any way as task is passed from the broker to sub broker. Hence, if a sub broker involved in a transaction, he is responsible for overall transactions since he is given the responsibility of performing transactions by a broker. To put in simple words, if you are a trusted name in the market for selling some product and want to expand your business, you’ll sell your franchise to some responsible firms or individuals. However, you’ll be responsible for how well they perform in selling your product. Hence, you’ll take many factors into consideration while going the franchise of your firm to someone as your product will be directly associated with their performance. It is obvious that you’ll look for certain properties in a firm to check if it fits for your franchise such as loyalty, management team, etc. Consider that you are the owner of McDonalds. So, before selling your franchise to any stakeholder, you’ll look for factors like area in square feet for franchise, management team, budget, etc. Similarly, while a broker is selling its franchise to a sub-broker, he looks for some certain qualities in sub-broker as the name of the broker will be directly associated to the service that the sub-broker will be providing. Some of the factors include experience and brand value, market share, revenue sharing model, product, services and offer and holistic support.
You can see the list of top 10 sub brokers franchise in India and study the factors on which Stock broking franchise work on India’s first broking franchise review portal : top10bstockbroker.com. Basically the concept of Stock broking franchise is a process where a SEBI (Securities and Exchange Board of India) registered broker provides the franchise to someone who is willing to follow rules & regulations of SEBI to act as sub-broker on behalf of franchisor. You can also check out the other Sub Broker Franchise website.
If you’ve enough knowledge and good network of investors, you can accumulate chunks of wealth by becoming a sub-broker.