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What is Sub Broker Business? – Role of Sub Broker in the Stock Market

Nov 09, 2022

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In the generation of technology and advancements, people still find it entangling when it comes to investing in the stock market. And some don't even dare to enter this market due to the taboo they sense around.


People have been taught about the stock market like any horror tale from childhood, that you will surely fail, all your money will be doomed, and so on.


But someone has to take a step forward and put a full stop to all these myths. Here is where the efforts of various stock brokers lie; they attempt to offer the most transparent, easy, and suitable interface between the stock market and the investors.


From online Demat and Trading Accounts to online trading and settlements, everything is available at your fingertips.


But of course, even the stock brokers cannot reach every individual in the Indian population by themselves. They, too, need people to rely on and delegate some of their operations which not only will extend the prosperity of the organization but also rake in and make a living.


We know these individuals as Sub-Brokers/ Authorized Persons/ Franchise/Partners/ Business Partners/Agents.


Angel Broking Franchise is one of the largest Sub broker providers in India.


With the recent developments and trending buzz of the stock market, many stock market enthusiasts have decided to get into the ring and play the role of Sub-Broker. So, let’s get to know about this subject.



Role of Sub Broker in Stock Market


A Sub-Broker is a person who is not a trading member/stock broker by himself but is associated with a trading member as an agent or other capacity to appeal the offerings of the trading member to the customers and also can deal in the market securities on behalf of the customers. Sub-Brokers do not form their products but offer the ones created or built by the stockbroker.


Sub-Brokers are also known as Authorized Persons infamously now. They are an inevitable link between the end customer and the service-providing entity.


They connect the customer and the stock brokers and ensure an amicable and smooth flow of communication between the two. A sub-broker's authority and responsibility level largely depend upon the entity they are associated with.


In some cases, the stock broking company requires the sub-brokers first to be a customer of the entity; in some cases, it is not needed.


As a sub-broker, the individual introduces the prospective customer to the stock broking company, its products, services, platforms, brokerage charges, and all other aspects.


Sharekhan Sub Broker business provides all types of products & services to its clients.


Some of the functioning that a sub-broker undertake includes-




  • Introducing new clients to the stock broking company

  • Maintaining communication with the clients

  • Dealing in securities on behalf of the clients

  • Resolving their queries and making them familiar with the stock market

  • Increasing business volume for the stock broker


Types of Sub-Broker Programs


These days, most large-scale stock broking houses have formulated their sub-broking programs where anyone with basic knowledge of the stock market can start their business as a sub-broker. These sub-broker programs can be called as-




  • Master Franchise

  • Sub-Broker

  • Business Partner

  • Remisier


Entities like Zerodha, 5paisa, Angel One, Sharekhan, Upstox, ICICI Direct, Kotak Securities, SBI Cap Securities, etc., have designed their sub-broker plans. They all have their perks, the scale of operations, and the criteria for picking the right person for this association.


With these sub-broking plans, anyone with a zeal for the stock market can set up their own business. In this business, you get assistance and support from a well-established brand, and you don't have to worry about doing it all by yourself.