In the previous article, we learned the Meaning of a Sub Broker; What is a Sub Broker Franchise? Best Sub Broker Franchise, How much a Sub Broker earns in India, and more.
But How to Become a Sub Broker?? Well, the complete process will be answered in this article.
Note* The complete article is written keeping in mind the process followed by Alice Blue.
Let’s get started!
- Who is a Sub Broker?
- What are the qualifications to be a Sub Broker?
- Is there an initial deposit required to be a Sub Broker?
- What is the profit-sharing of Sub Brokers?
- Why should one become a Sub Broker with Aliceblue?
- How to become a Sub Broker with Aliceblue?
- Quick Summary
- FAQ(Frequently Asked Questions)
Who is a Sub Broker?
A sub broker is an agent of a broker, i.e., he introduces new clients to the broker. A sub broker gets a certain percentage of profit-sharing from the broker based on the brokerage paid by his clients every month. You can become a sub broker by obtaining a certificate of registration from the SEBI. It is mandatory for the sub broker to enter into an agreement with the broker as specified by SEBI.
Note* If you become a Sub Broker with Alicblue, our team will take care of the complete SEBI Registration Process.
Qualifications to become a Sub Broker?
Anybody who has passed SSLC (10th Standard) can become a Sub Broker.
Is there an initial deposit required to be a Sub Broker?
“No,” there is no initial deposit/advance required to be a sub broker with Alicblue. You may start your sub brokership without a deposit, but a registration charge of ₹ 1,000 + GST is applicable.
Also, segment-wise registration fees are listed below:
- Registration Fees for Equity ₹ 6000 + GST (Per Segment NSE CM +FO+CDS)
- Registration Fees for MCX ₹ 2000 + GST
What is the profit-sharing of Aliceblue Sub Brokers?
Usually, Sub Brokers in India earn on a percentage sharing basis. Aliceblue provides a profit-sharing of 60% on the brokerage paid by your client. Here’s how it works:
- Sub broker introduces a client to the broker.
- The client trades and starts paying brokerage to the broker.
- The brokerage is split between the sub broker and broker on a percentage basis.
For a much better understanding, let’s take a look at an example:
- Mr. Prateek is a sub broker of Aliceblue India and has a brokerage sharing of 60%.
- He introduces around 100 clients. These clients trade and pay an overall brokerage of ₹ 50,000 to the broker.
- Then the broker will share ₹ 30,000 (60% of ₹ 50,000) with Mr. Prateek (sub-broker).
Why should one become a Sub Broker with Aliceblue?
Here are some of the benefits of becoming a sub broker with Aliceblue:
- Best in the industry profit sharing ratio of 60%.
- Alice Blue Partner Dashboard will help you track:
- Lead Status
- How many people your clients have referred
- Accounts Opened
- Accounts Pending
- Accounts Under Process
- Account Traded
- Monthly, Quarterly, and Yearly performance reports.
- Marketing and branding support via collaterals, banners, and more.
- Digi link will help you get the clients on board with a single click.
- Training for all the technical platforms for smooth functioning.
- 15 + Trade Store products for your clients that help in Algo Trading, Investing, Options Trading, Buy & Sell Signals, Advisory, Trading Tips, etc.
- Live webinars and trading courses for clients.
- Complete support via dedicated relationship manager.
Apart from all the benefits above, you will be eligible for incentives as well. With Aliceblue, you will get four types of incentives:
- Trading Revenue Incentive: As you have already learned, you will get a profit-sharing of 60% on the brokerage paid by your client to Alice Blue.
- Clients Traded Incentive: If 6 to 24 clients trade in a month, you will get ₹ 100 for every traded account. If more than 24 clients trade in a month, you will get ₹ 150 for every traded account. (Clients Traded Incentives will be subject to change based on management policy. To know the current policy, call us on 08061575512 or write us at email@example.com)
- Client Referral Sharing Incentive: You will get 50% lifelong brokerage sharing when your client refers his friend. Let’s understand this with an example:
- Assume you have referred Mr. X.
- Mr. X now refers Mr. Y to become an Aliceblue Client.
- Mr. Y generates a total brokerage of ₹ 10,000 in a month.
- You will get 50% of the total revenue i.e. ₹ 5,000.
- Also, Mr. X will get 10% from the brokerage generated by Mr. Y for life long.
- Partner Referral Sharing Incentive:If you refer a sub broker to Aliceblue, you will get a 10% lifelong sharing of the net income generated from the referred sub broker.
- Mutual Funds Revenue Sharing:For every mutual fund’s investment by your client, you will get ₹ 10.
How to become a Sub Broker with Aliceblue?
Check out the step by step process below:
- Firstly, you need to open a trading and Demat account with Alice Blue. Check out the complete account opening process here.
- After opening an account successfully, you need to call your branch manager and place a request for a sub-brokership.
- Along with the request, you need to submit the following documents:
- Education Certificate (Minimum 10th Pass)
- PAN Card
- Aadhar Card
- Passport Size Photo
- Once all the documents are submitted successfully, your branch manager will send a payment link for registration.
- Make the payment, and within 2 or 3 days franchise code will be sent to you.
- Sub broker is an agent of a broker which means he introduces new clients to a broker.
- Anybody who has passed class 10 can become a sub broker.
- There is no advance/deposit required to be a sub broker with Alice blue. You may start your sub brokership with a registration charge or ₹ 1000 + GST applicable.
- Sub brokers in India earn on a percentage sharing basis. Alice blue provides a profit sharing of 60% on the brokerage.
- There are various benefits of becoming a sub broker with Alice blue.
- Best in industry for profit sharing ratio
- Alice blue partner dashboard will help you track the lead status, accounts open, accounts pending, etc.
- Marketing and Branding support
- Digi link which will help you to get clients on board, etc.
FAQ(Frequently Asked Questions)
1. Can A Sub Broker Trade For Himself?
Yes, a sub-broker can trade and invest for himself. He can do so, with an individual Demat and Trading account provided he completes his duties towards his clients and stockbroking firm in the first place.