By MOFSL
2025-08-19T09:05:00.000Z
6 mins read
Understanding Your Commission Structure as a Sub-Broker with Motilal Oswal
motilal-oswal:tags/sub-broker-franchise,motilal-oswal:tags/sub-broker-in-india,motilal-oswal:tags/become-sub-broker,motilal-oswal:tags/sub-broker
2025-08-19T09:05:00.000Z

Sub-Broker Commission Structure

Knowing your commission structure is essential in case you intend to work as a sub-broker in the stock market business. It has an immediate impact on your sales and your potential to increase them over time. Motilal Oswal, one of the main brokerage companies in India, gives partners and sub-brokers one of the most profitable and transparent commission schemes. In-depth discussions of the Motilal Oswal sub-broker commission structure, expected profitability, and revenue optimization will be covered on this blog.

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What is a Sub-Broker?

According to SEBI's amended legal guidelines, a sub-broker—now officially known as an "authorised person"—serves as an authorized middleman between regular investors and stockbrokers like Motilal Oswal. Their essential duties consist of attracting new clients, supporting them in creating accounts, and facilitating their investments in a variety of monetary products, including stocks, mutual funds, derivatives, and insurance. In addition, sub-brokers assist clients with trading platforms, give post-purchase help, and provide fundamental advising services. You get a commission in trade, which is determined by the profits from the transactions and investments made by your clients.

Your role involves:

Commission Structure Overview

Motilal Oswal follows a transparent and rewarding revenue-sharing model for its sub-brokers. This means you earn a fixed percentage of the brokerage revenue generated through the trades and investments made by the clients you bring in. The more active and higher the trading volume of your clients, the greater your monthly commission. This structure allows sub-brokers to scale their income in proportion to the business they generate. It’s a performance-driven model that encourages long-term client engagement and business growth.

Key Highlights:

Let’s look at the detailed structure in the table below.

Motilal Oswal Sub-Broker Commission Slabs

Monthly Revenue Generated (by Clients)
Sub-Broker Commission (%)
Remarks
₹0 – ₹50,000
50%
Entry-level payout
₹50,001 – ₹1,00,000
60%
Moderate Activity
₹1,00,001 – ₹2,50,000
70%
High activity tier
₹2,50,001 and above
75–80%
Premium slab, negotiable
Mutual Fund Distribution
Up to 1.5% trail commission
Based on AUM
Insurance & Wealth Products
Based on product category
Variable

Note: These slabs are indicative. Actual rates may vary depending on the agreement and ongoing business performance.

How Commission is Calculated

Let’s take an example to understand how your commission is computed.

Example:

Suppose your clients generate ₹1.5 lakh in total brokerage in a month. You fall under the 70% commission slab.

Your Earnings = ₹1,50,000 × 70% = ₹1,05,000

You receive ₹1.05 lakh as your monthly commission payout.

Product-Wise Income Opportunities

Motilal Oswal offers a wide range of products, giving you multiple income streams beyond just equity broking.

Product-Wise Earnings Table

Product Category
Income Type
Commission / Trail (%)
Equity Delivery & Intraday
Brokerage Sharing
50–80%
Derivatives (F&O)
Brokerage Sharing
50–80%
Currency Trading
Brokerage Sharing
50–75%
Commodity Trading
Brokerage Sharing
50–75%
Mutual Funds
Trail Commission
0.5–1.5% of AUM
Portfolio Management Services (PMS)
Upfront + Trail
Up to 2%
Insurance (Life & General)
Upfront Commission
10–25% (varies)
Demat Account Opening
Per Account Payout
₹300–₹500 per account

This structure ensures that as a sub-broker, you are not dependent on a single revenue source. You can create a diversified, long-term income stream.

Advantages of Motilal Oswal’s Commission Model

Transparent and Flexible

Transparency is the foundation of Motilal Oswal's commission business. Through an easy-to-use Partner Dashboard, you, as a sub-broker, have complete access to your profit reports, customer deals, and profitability. This guarantees that there are no sudden deductions or hidden freights. Real-time tracking of individual client activity, brokerage contributions, and payout history is another characteristic of the platform. For financial planning, you may produce automatic reports at any time. Also, having the freedom to choose your clientele or product emphasis offers you greater control over your company.

High Earnings Potential

The high profit-sharing rate, which may reach 80% based on your success, is one of the main advantages of working with Motilal Oswal. This implies that there's no upper limit to your earnings; the more business you produce, the more you make. Sub-brokers profit from attractive rewards beginning at 50, indeed at the beginner level. Your earnings increase in direct proportion to the growth in trading volumes and the number of guests you acquire. Long-term customer retention and active participation are encouraged by this. Sub-brokers can develop a lucrative, scalable company with steady monthly profit over time.

Performance-Based Incentives

In addition to regular charges, Motilal Oswal offers milestone incentives and performance bonuses to top-performing subbrokers. These are linked to particular accomplishments, such as meeting client acquisition aims, increasing mutual fund assets under management, or continuing to trade regularly. These performance-based rewards serve as a motivating tool to accelerate your growth. The ecosystem also includes leadership awards, recognition initiatives, and regular competitions. It's a creative approach to promoting not only expansion but also superiority in financial advising and customer service.

Lifetime Trail Income

The lifelong trail profit on distribution items is one of the most charming aspects of Motilal Oswal's commission scheme. As long as the client is invested, you'll continue to make money on each mutual fund SIP, insurance product, or PMS that you offer. Indeed, in the absence of frequent acquisitions, this generates a steady flow of profit that grows over time. For sub-brokers, trail income gives long-term financial security in contrast to transactional trading commissions. Also, it motivates sub-brokers to retain customers with superior service norms and suggest high-quality items.

How to Maximize Your Commission as a Sub-Broker?

Motilal Oswal also provides robust tech and training support to help you scale your business efficiently. Here are some pro tips to enhance your earnings:

Strategy
How It Helps
Focus on High-Volume Traders
Generates more brokerage, pushing you to higher slabs
Cross-Sell Products
Increases your income from MFs, PMS, Insurance
Client Retention
Ensures long-term trial income
Use Digital Tools Provided by MO
Enhance client experience and acquisition
Regular Portfolio Reviews
Helps upsell and build trust

Technology & Support You Receive

This support system helps you run your sub-broking business with professionalism and scale. As a Motilal Oswal sub-broker, you get access to:

Why Choose Motilal Oswal?

Here’s a quick comparison of why Motilal Oswal stands out.

Feature
Motilal Oswal Sub-Broker Program
Revenue Sharing
50% to 80%
Product Range
Equity, Derivatives, MF, PMS, Insurance
Tech Platform
MO Partner App, Research Tools
Brand Credibility
35+ years in the market
Research & Advisory Support
Yes
Training & Business Development
Yes

Final Thoughts

Understanding the commission structure is essential to running a profitable sub-broker business. With Motilal Oswal, you get the advantage of a trusted brand, high payouts, multiple revenue streams, and full-scale support to grow your network. Whether you’re just starting out or looking to scale your financial services business, Motilal Oswal offers the platform and incentives you need to succeed.

Stay informed - Advantages of Sub Broker Franchise | Sub Broker Earnings in India | How to change Stock Broker & transfer Stocks | Sub Broker Franchise Cost | Sub Broker eligibility criteria in India | Authorised Person Courses | Types of Authorised Person Exams

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