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Taking into account the pace at which the Indian stock markets are growing, one of the best business opportunities right now is to become a sub-broker with a reputable stock broker. That said, if you ever hope to start a profitable business venture, it is crucial to get yourself enrolled with the best share broker franchise in India. A broking franchise represents a company that has dealings in stocks. Such a company has a willingness to give their franchise operations to small and mid-size sub brokers (also known as Authorised Person). Rights are sold to their franchise so that an extra amount of clients can be generated, and hence, more income and wealth may be earned from franchise partners and sub brokers. Sub brokers (also known as Authorised Person) may share clientele with them and make use of any software to grow the business. In the meantime, partners have the ability to create potential for more business and revenue from clients and this is in the way of any brokerage that is charged.
A model such as a franchise is a good way to begin a business that may be very successful in the future. But then, how do you go about it? If you’re unsure of what you need to do to choose the best broker for sub-brokership, here’s a guide that can help.
How to choose the right sub broking franchise?
To choose a sub-broker franchise that’s perfect for you, here are a few parameters that you need to consider.
1. Brand value and experience
The experience and brand value that the sub-broker franchise commands is a major parameter that you need to consider. Partnering with a stock broker who has decades of experience and high brand value will ensure better visibility of your sub-broker business and help you earn more customers.
2. Market share
Here’s something that you need to keep in mind when choosing the best share broker franchise in India - with high market share comes high volumes of business. Therefore, ensure that you partner with a stock broker that has a high enough market share. This way, the chances of you getting larger volumes of business also goes up.
3. Revenue sharing model
This is another major parameter that you would need to consider. Since sub-brokers are a part of the broking franchise, the revenue that they earn needs to be shared with the primary stock broker. And so, the revenue sharing model is something that you need to look at and examine very carefully when choosing the best broker for sub-brokership. Go with a stock broker who offers higher revenues to you.
4. Products and services offered
The number of products and services offered by a stock broker plays a very indirect, yet important role in your sub-broker business. Always make sure to choose a broking franchise that offers multiple products and services across different segments and asset classes. This way, you get to cater to a much higher client base.
5. Support services
Since the sub-broker business requires you to deal with clients and the stock markets day in and day out, things are bound to go south occasionally. However, having a strong support system from your sub-broker franchise can help smooth things out easily and effectively. Also, with a well-trained and dedicated support service team, your chances of marketing your business and developing it goes higher as well.
Conclusion
Before you begin to consider establishing a business in the stock broking industry, you should know that any amount you invest will be refundable to you by any stockbroker. So, if you go in for a franchise option, any capital you pay, or have to shell out as a security deposit, is given back to you if you make a decision to shut your business. Moreover, the company whose franchise you invest in will aid you in getting your registration as a sub broker (also known as Authorised Person) completed. This registration usually is with the BSE or NSE (Bombay Stock Exchange, or National Stock Exchange, respectively).
Motilal Oswal not only ticks all of the above parameters in this list, but also excels in them. You don’t have to look very far for the best share broker franchise in India. All that you need to do is visit our website right away to start your journey as a sub-broker with us.
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