A sub-broker acts as an intermediary between a stock brokerage firm and clients, facilitating stock trades under a licensed brokerage and earning commissions for their services.
To become a sub-broker in India, register with SEBI, obtain NISM certifications, affiliate with a brokerage, and comply with regulatory requirements set by SEBI.
Benefits of being a sub-broker are earning potential, client network building, brokerage support, continuous learning, flexibility, regulatory compliance & credibility.
Exchange Membership
A Broker is a direct member of stock exchanges while a Sub Broker is not a member; but operates under a broker.
Trading Execution
A Broker can execute trades directly on the exchange whereas a Sub Broker assists in trading decisions but relies on a broker for execution.
Licensing
A Broker requires a comprehensive license from regulatory bodies like SEBI while a Sub Broker requires registration with SEBI, but under the broker’s license.
Client Interaction
A Broker interacts directly with the clients, offering a wide range of services whereas a Sub Broker focuses on building client relationships and offering personalized advice.
To become a sub-broker you need a bachelor’s degree in finance or a related field, NISM certification, SEBI registration, and brokerage affiliation.
Sub-broker roles are client portfolio management, investment advice, trade facilitation, client relations, and ensuring compliance with market regulations.
If you become a sub-broker with Alice Blue you get access to innovative platforms, competitive rates, diverse products, support, & efficient client management.
Initial deposit for sub-brokers varies by brokerage. Some require it for security or investment, others may not. It’s important to check specific policies with the brokerage.
Sub-brokers' profit-sharing varies by firm. Generally, sub-brokers receive a percentage of the revenue generated from the clients they manage.
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