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Sub broker franchise- A lively business model for SMEs
Sub broker franchise- A lively business model for SMEs

Sub broker franchise- A lively business model for SMEs

ANI | Updated: Oct 27, 2021 14:53 IST

New Delhi [India], October 27 (ANI/ATK): Stock Broking Franchise is an upcoming business model that attracts the new generation to be a part of. It generates considerable amount of revenue to the ones who possesses high qualified business and market skills.
Today stock broking houses also come with additional services like advisory and PMS. It depends from individual to individual as to which stock broking franchise they wish to be a part of.
When an entrepreneur decides to open broking house franchise, he is liable to provide all the services that the particular broking house serves.
To know in detail about Sub Broker Business - Click Here
What is Stock Broker Franchise Business?
Stock broker franchise refers to a sub-broker who wishes to open a reputed broking firm in his/her locality under the name of a reputed broking house. This procedure follows complete legality with the first step from the franchisee to register itself under SEBI. The sub-broker then has the responsibility to gain as many clients as possible that trades in the market in order to earn revenue in the form of brokerage from them. Excellent client base is a key to higher income to the broker.
It is the broker's responsibility to see that the client is satisfied with the service and has a profit bearing portfolio. The franchisee has to follow all the norms laid down in the agreement and adhere to the revenue sharing policy as well. This business needs complete vigilance and an on-the-go attitude from the franchisee. It is important to see that trades are place at right prices in the market demanded by the client.
In return for the patent name used by the franchisee, he has to give away a percentage share of his income to the franchiser as a rent token to continue to be a part of the franchise. This amount is bare minimum, while all the other income earned is retained by the franchisee.

Advantages of Stock Broker Franchise Business?
Stock broking franchise comes with large advantages for a franchisor as well as franchisee. The franchisor has the benefit to spread its outlet among various cities which will lead to business expansion. Moreover, the franchisor gets annual token from the franchisee as a rent towards using the patent name.
For the franchisee, he/she gets to earn large sum of money in form of brokerage from its on board clients. If the broking house is into providing other services like advisory, PMS or wealth management, then income in generated through the fees collected for these services as well. Another trait that is advantageous for the franchisee is that he/she gets to retain most of the amount earned with sharing a minimal percentage income with the franchisor.
It is a boon for the franchisee to establish the broking house as it is already reputed, has past experience and is providing services that is very demanding in the market. The franchisee gets the benefit on advertisement and marketing from the patent and has not to spend much on spreading the word to the public. With the need and want for investment in the market, the franchise will be in great demand from investors in the locality.
Which are the Top Stock Broker Franchise Providers?
The demand for broking firms depends on different factors. Investors often choose the broking firm that charges them minimal broking fees and has many services under one roof. This will lead an investor to earn more from the market. However, for the franchisor, he/she will look at the maximum profitability that can serve their purpose. Top stock brokers that provide franchise is mentioned here.
It is essential to look at all the elements that create demand for broking houses. This article has shed light on all these factors. We hope you have gained clarity on which broking house franchise is the best to start up.
This story is provided by ATK. ANI will not be responsible in any way for the content of this article. (ANI/ATK)