Alice Blue is considered the best sub-broker franchise in India. Alice Blue provides a profit-sharing of 100% on the brokerage paid by your client for the first 3 months and then 75% for a lifetime.
This article covers all the aspects of a Sub-Broker and also justifies why Alice Blue is the best sub-broker franchise in India.
What does a Sub-Broker do?
A “Sub-Broker” is a non-Trading Member of a Stock Exchange who, as an intermediary or otherwise, helps investors engage in securities transactions through Trading Members or Stock Brokers.
Just like the stock brokers, sub-brokers are also regulated by SEBI. To become a sub-broker, you must receive a registration certificate from the SEBI. And then, the sub-broker is required to engage in an agreement with the broker, as stipulated by SEBI.
Note: Alice Blue takes care of the SEBI registration process for Sub-brokers
Before answering what a sub-broker does, let’s understand the exact working of a sub-broker with an example.
Have you ever been to Dominos, PizzaHut, CCD, or Haldirams? Who do you think owns those places? Some of you might know this, but for those who don’t know yet, we are sorry to drop the truth bomb that these brands don’t actually own the outlets.
These companies lend their brand name under the franchise model. So technically, the owners of those outlets are someone else. The owner of the outlet here acts as a middleman to bridge the gap between the brands and the customers.
The same could be said for Sub-Brokers. They own franchises of various stock brokers.
A Sub-Broker helps the clients with:
- Account Opening Process
- Introducing Trading Terminals,
- Providing Call and Trade Services
- Resolving Issues and first-hand customer service, etc.
Check out a detailed article on what a sub-broker does here.
Best Sub-Broker in India
Alice Blue is the best sub-broker franchise in India. Alice Blue offers a 100% profit-sharing on the brokerage paid by your client for the first three months, followed by a 75% profit-sharing for a lifetime.
The deal looks a little unreal, isn’t it? Here’s how it works:
- Sub-Broker connects a client with the broker.
- The client begins trading and starts paying brokerage to the broker.
- The broker and sub-broker divide the brokerage on a percentage basis.
For a much better understanding, let’s take a look at an example:
Scenario 1 (First 3 Months)
- Jacob is a sub-broker of Alice Blue India and has a brokerage share of 100%.
- He introduces around 200 clients. These clients trade and pay an overall brokerage of ₹1,00,000 to the broker.
- Then the broker will share ₹1,00,000 (100% of ₹1,00,000) with Jacob (sub-broker).
Scenario 2 (After 3 months)
- Jacob is a sub-broker of Alice Blue India and has a brokerage share of 100%.
- He introduces around 200 clients. These clients trade and pay an overall brokerage of ₹1,00,000 to the broker.
- Then the broker will share ₹75,000 (75% of ₹1,00,000) with Jacob (sub-broker).
If you paid attention above, we said that Alice Blue is the best sub-broker franchise in India. We say this because what we pointed out above is just the tip of the iceberg.
Find out why Alice Blue is the best sub-broker franchise in India here!
Trust us, your mind will be blown.
How to become an Alice Blue Sub-Broker?
To become a sub-broker at Alice Blue, you need to have passed the 10th Standard (SSLC).
The next thing you need to do is get a registration certificate from SEBI. This could be the tricky part, but if you become a sub-broker with Alice Blue, the Registration Process will be taken care of by Alice Blue themselves.
Another great thing about becoming an Alice Blue sub-broker is that no upfront investment is needed. You may begin your sub-brokerage at ZERO investment; however, there is a ₹1,000 + GST registration fee. This falls under their Normal Partner Category.
There is one additional way to register FREE as a sub-broker with Alice Blue. If you have 5,000 and 15,000 social media followers, you may become their partner by selecting the Strategic Partner Option.
We have outlined the important steps below that can be followed to become an Alice Blue Sub-Broker:
- You must first open a Trading and Demat Account with Alice Blue. Check the entire account opening procedure on this page.
- After successfully creating an account, you must complete Partner eKYC in one of two methods.
- Strategic Partner: Should have more than 5,000 to 15,000 social media followers – Free account opening.
- Normal Partner: Regular option with a ₹1,000 plus GST registration fee.
- Enter your PAN Card Information and Proof of Address.
- Provide Bank information and GST details (if any).
- If you choose Strategic Partner, please submit your social media links.
- If you choose a Normal Partner, pay the registration fee.
- Your Franchise code will be emailed to your Registered Email Address after your application has been accepted.
Check out everything about how to become an Alice Blue sub-broker here.
Get Industry’s Highest Brokerage Sharing as an Alice Blue Sub-Broker Today!
