Sub-brokers are the authorized persons of a stock broker or trading member and are registered with SEBI as Authorized Persons. These sub-brokers act as the middleman between the customers and the stock broking house.

They are also called Agents, Business Partners, Partners, or franchises. Sub-Brokers offer the products and services of the stock brokers to the clients and assist them in setting up and managing their accounts.

The sub-broker business is beneficial for both the parties, the stockbroker and the sub-broker. The stock broker can easily reach a wider audience without setting up an entirely new office in the area and engaging in high-cost marketing and promotions.

On the other hand, the sub-broker gets the support of a large-scale enterprise, an already established brand in the market, continuous earning, easy setup, and full support.

One of the well-known Sub Broker providers, provides all types of support to its clients.


Under the sub-broker business, the sub-brokers earn via the customers they bring to the company. This partner program generally generates continuous income for the sub-brokers. The various stockbrokers present in the market have set their revenue-sharing models and proportions.

The revenue sharing must be formulated to ensure that the partners can make sufficient earnings for themselves and have smooth functioning. The revenues are the partners’ rewards for their tireless endeavors and that one extra mile attempts.

In the Franchise program or the sub-broker program, it’s not just the stockbroker or the sub-broker doing business alone; they are working together as one team.

Now, let’s see what the difference means from where a sub-broker earns and how much –

Client Acquisition

A sub-broker’s main job is increasing the number of clients associated with the company. They refer to new customers and open their Demat and Trading Accounts with the entity.

On the successful account opening, the stock broker shares some income from the new account opening with the sub-broker.

Being a top broker it will be very easy to acquire clients as they provide a massive portfolio of products to offer & they provide very high-end services as well.

Trading of Customers

When the customers from the sub-broker client map trade on the platforms of the stockbroker and the stockbroker charge brokerage from them.

The brokerage charge is shared with the sub-broker in some pre-determined portion.

Dealing in Securities

Sub-brokers can trade with the stock broker at any time and make money on the trades themselves. They can invest in any securities the stock broker offers to the end customers.

The top stock brokers appeal to attractive revenue sharing to their sub-brokers. Along with high earning potential, they also provide them with facilities like:

• Comprehensive Business Development Support
• Personal Assistance
• Robust online trading platforms
• Back-office support
• Marketing and Branding Support
• Risk Management System

The perks for a sub-broker do not end here; stock brokers have customized their features for the sub-broker to benefit in the best manner possible.


The Authorized Person must also bear some initial cost to make this income with the stockbroker. This cost includes a security deposit (if any), initial investment towards setting up the office, and equipment required for the operations.

The investment levels differ from broker to broker. In any case, the initial investment cost can range between Rs 2-4 lakhs for setting up a proper working space for acting as a sub-broker.


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