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If you are considering a stock market business, or are an investor, it is important for you to be aware of the roles that vital people play in the world of finance today. There are investors, of course, but there are also share brokers and sub-brokers. Then, there is also the remisier. It is vital that you make distinction between different people in the stock market world, and the roles they distinctly play. It is important that you know the differences between a remisier vs a sub broker (also known as Authorised Person).
You are probably already familiar with the function of a broker. Reliable brokers provide a trading and investment platform for potential investors and generate a range of investment opportunities, not just in the stock markets, but in other investment areas like cryptocurrency, commodity markets, etc. For instance, if you wish to open a demat account today, any reputable broker offers you this service. In the case of a remisier vs a sub broker (also known as Authorised Person), the difference may be confusing to some as terms are used interchangeably. There are commonalities, as in both these roles, there is a middle person acting between an investor and a stock broker.
You can become a sub broker very easily today. Basically, a sub broker (also known as Authorised Person) is an individual who acts in the capacity of a stock broker's agent. Sub brokers interact with investors who are the stock broker’s clients, on behalf of the stock broker. The sub broker’s job functions include interaction with clients, and other operations like client-sourcing, client service and management, and other things. When you go in for any upcoming IPO, you may register with your broker, but interact with a sub broker for help in the process.
You must have an idea of what a broker and a sub broker (also known as Authorised Person) do before you learn about a remisier. In this way, you can automatically make out the differences between a remisier and a sub broker. Essentially, a remisier does the same thing as a sub broker, but sub brokers work with a broker, typically part of the brokerage firm. In the case of a remisier, they work individually. Their tasks are mainly focused on attaining new business for any brokerage. They work on the basis of a commission. This is obtained when a new client of the brokerage invests in a certain instrument/product of the brokerage. Like a sub broker, a remisier has to be an authorised person, officially certified by the exchanges. This is considered a licence to work in the capacity of a remisier.
The functions of a sub broker vs a remisier are alike in some ways. However, a sub broker (also known as Authorised Person) may simply be an extended part of a brokerage (like a franchise of a certain broker), but a remisier cannot be this. Furthermore, a sub-broker has the authority to use the brand of the brokerage, whereas the remisier cannot. A sub broker is also permitted to issue a confirmation or contract note once any stock transaction has taken place, but a remisier cannot.
In case you wish to open a demat account, a sub-broker can get it up and running. The same is true if you wish to subscribe to any upcomig IPO. If you have grasped these differences between a remisier and a sub broker (also known as Authorised Person), you will be savvy enough to get your investing done faster.
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