The Indian stock market has been expanding rapidly over the last decade, and with it, the demand for trustworthy and knowledgeable intermediaries is also rising. If you’re looking to enter the financial services or investment space, then becoming a **Sub-Broker** (also known as an **Authorised Person**) could be the ideal path for you.
But before registering a sub-broker or Authorised Person, here are **10 important things you should keep in mind** to build a successful and sustainable sub-broking business in India:
1. š Educational Qualification is a Must
You need to have at least a ** 10+ qualification** to become a sub-broker. If you’re planning to go big, then a certification like **NISM Series-VIII (Equity Derivatives)** or **NISM Mutual Fund Distributor** can add credibility and knowledge. You can register as a Sub-broker of a Full Services Broker or a Discount Broker. To become an introducer of multiple brokers or get a perfect deal from a Broker as an Authorised Person, you can contact us or book a consultation with us.Ā
2. šļø Register Through a SEBI-Registered Stockbroker
Sub-brokers cannot directly register with the exchange. You must partner with a SEBI-registered stockbroker who will file your **Authorised Person (AP)** application with the stock exchange (NSE/BSE). Kindly ensure that your stockbroker is registered with the exchanges like NSE, BSE, MCX, NCDEX, etc. You should try to register with a broker that offers all investment-related products and services that are available in the market.
3. š§¾ Prepare Documentation in Advance
Be ready with these documents:
* PAN card and Aadhaar card linked with Bank Account
* Educational proof (10+2 or graduation)
* Address proof
* Passport-sized photos
* Canceled cheque and bank details
* GST registration (if applicable)
Complete and clean documentation speeds up the onboarding process. If you are registering in your wifeās name, please ensure that the surname on the registration matches the one on all relevant documents.
4. š§ Understand Your Role Clearly
As a sub-broker, you’re responsible for:
* Client onboarding
* Assisting in trade execution
* Providing basic investment education
* Ensuring regulatory compliance- Displaying certificates, keeping a register, or a voice logger for trading.
You’re not just a referral agentāyouāre a key partner in the brokerās business ecosystem.
Ā 5. š§® Know the Revenue Model
Sub-brokers earn through **commission sharing** with their parent broker. You earn a percentage of the brokerage generated by your clients. This can range from **50% to 90%**, depending on your agreement and performance. There are some other sources, also through which a sub-broker earns money. If you want to know more about how a sub-broker earns money while partnering with a broker, you can contact us.
Ā 6. š¼ You Donāt Need a Big Office, But You Need a Professional Setup
A physical office is not mandatory, but a **dedicated space, laptop/desktop, internet connection, and phone** are essentials. Having a small, professional workspace builds trust with clientsāespecially in semi-urban and rural markets. Many people donāt start their sub-broking business because they think it requires a big setup. While earning a handsome money in this business requires good contacts, not huge investments.
Ā 7. š Digital Marketing Can Be a Game-Changer
Todayās investors are active on mobile and social platforms. Learning **basic digital marketing**, creating a **WhatsApp group**, or running **local Facebook ads** can help you grow faster. At some point in time, your contacts get exhausted, and you need fresh contacts or leads.
Platforms like **GrowAxis** can support you with ready-made marketing tools and strategies to reach your audience effectively.
Ā 8. š ļø Use the Brokerās Tools to Your Advantage
Most brokers offer:
* Mobile trading apps
* CRM dashboards
* Client analytics
* Research reports
Learn how to use these tools effectively to provide a seamless experience for your clientsāand to track and grow your own revenue.
9. š¤ Build Relationships, Not Just Transactions
Sub-broking is a relationship-based business. Long-term clients bring recurring revenue. Focus on:
* Regular communication or client engagement is important
* Answering queries patiently
* Offering educational content
* Hosting small investor awareness sessions
Trust is your biggest asset.
Ā 10. š Plan for Growth from Day One
Donāt stop after onboarding 10 or 20 clients. Set monthly targets:
* No. of clients to acquire
* Revenue to generate
* Products to cross-sell (MFs, IPOs, Insurance)
Use a business planner or get support from growth platforms like **GrowAxis** to stay accountable and scale smartly.
Summary
Becoming a sub-broker in India is not just about starting a small businessāit’s about stepping into the role of a financial guide for your community. With the right mindset, knowledge, and tools, you can build a **sustainable income stream and a respected brand** in your locality.
Take the first step with preparation and purposeāand success will follow.