Difference Between Sub Broker vs Authorised Person
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Most individuals are quite aware that it is a challenge to engage in share transactions without any aid. A majority of investors seek the help of brokers to do this effectively. Brokers are experts in the field of trading and investing and if you choose an experienced and known brand, like Motilal Oswal, you can be assured of business growth in stock market. Many transactions related to shares are done by individuals called sub-brokers (also known as Authorised Persons).
While beginning with the investment, always look for a reliable financial partner such as Motilal Oswal. Always see the features they provide, such as the all-in-one trading platform to invest in different stock market options, automated processes, online account opening, timely payout, multiple Demat Scheme as per client needs, etc;
If you wish to start your own business with a stockbroker, there are two different options you can choose from. You can either choose to start a sub-broker franchise or become an authorized person.
Contrary to popular opinion, a sub-broker and an authorized person are not one and the same. They’re slightly different in terms of eligibility criteria, duties and responsibilities, and the amount of initial investment that you’re required to make.
Therefore, if you’re seriously considering a career in the stock market, it is crucial for you to know the difference between a sub-broker and an authorized person. And that’s what we’re going to be looking at in this article.
Difference between Sub-Broker v/s Authorised Person:
The key differences between a Sub-Broker and an Authorised Person have been tabulated below for easy understanding.
| Consideration Area | Sub Broker | Authorised Person |
| Meaning | A sub-broker is a person works on behalf of a trading member of a recognized stock exchange. | A person appointed by a stockbroker and as an agent gets access to the trading platform of a stock exchange. |
| Registration | Registered with SEBI | Just needs to fill an agreement form with the stockbroker. |
| Initial deposit | ₹50,000 - ₹3,00,000 | Minimum ₹10,000 or NIL |
| Revenue sharing ratio | As per mutual commercial terms | As per mutual commercial terms |
| Responsibility | Just like an extension branch of the stockbroker so takes almost all responsibility of a stockbroker. | It has a bit less responsibility than a sub-broker. |
| Agreement | Sub-broker enters into the tri-party agreement | AP enters into the two party agreement. |
Related Articles: How To Choose The Right Sub Broker Franchise In India | Key Points to start Business as a Sub Broker | 10 Qualities A Sub Broker Must Have To Become Successful | How to Start & Grow Your Sub Broker Franchise in India
