What is a Sub Broker? How to Become a Sub Brokers

What Is a Sub‑Broker?

A sub-broker is an Exchange-registered Authorised Person (AP) that acts as the bridge between a stockbroker and investors. A registered sub-broker is not a direct member of any stock exchange, but they operate through a registered broker to assist clients with trading and investment services.

Key Responsibilities:

• Client onboarding: Help investors with account opening, KYCs, documentation, and introduce them to the main brokers and all investment products.
  
• Trade facilitation: Execute security transactions on behalf of investors through the main broker, keeping all proper records of investors’ orders.
  
• Guidance and support: Offer basic investment advice, portfolio management suggestions, and access to research (provided they are properly registered with SEBI).
  

Regulatory compliance: Ensure that investor transactions comply with SEBI and broker-specific rules and regulations.

Role Comparison – Sub‑Broker vs. Stockbroker

	Stockbroker	Sub‑Broker / Authorised Person
Exchange Membership	Registered directly with the exchange	Operates under a registered broker’s exchange membership
Functions	Trade execution and brokerage services	Facilitates client connections, trade execution, and support
Income Source	Charges brokerage fees directly	Earns a commission from client trades through the stockbroker
Regulatory Status	Must comply with SEBI and exchange norms	Requires SEBI registration via a sponsoring broker to operate legally

Why Sub‑Brokers Are Important

• Extending Broker Reach: The sub-broker or Authorised Person helps brokers expand their geographic foothold and client base.
  
• Personalized Service: Investors often get more hands-on support and localized service from sub‑brokers.
  

• Resource Access: Sub‑brokers gain tools, client insights, and training from their parent brokers, while bearing lower infrastructure costs compared to independent brokers.

How to Become a Sub‑Broker

1. Meet basic eligibility:
   
   • Must be at least 18 years old with 10+ education in India.
     
   • Maintain a good reputation with no history of fraud.
     
2. Obtain the necessary certification:
   
   • Complete SEBI/NISM‑approved certification courses.
     
3. Partner with a stockbroker:
   
   • Sign an agreement and register as a sub‑broker through them. With an Exchange fee of Rs 25-30K approx for all Segments. An AP needs to keep a security deposit with the main broker, and the amount depends on the broker to broker.
     
4. Register with SEBI:
   
   • Submit an application and pay the registration fee to receive a unique SEBI sub‑broker certificate.
     
5. Set up your operations:
   
   • Arrange offices, tech infrastructure, and any required staffing.
     
6. Acquire and serve clients:
   
   • Build your investor base, offer effective services, and help clients navigate compliance and investments.

How GrowAxis Can Help Sub-Brokers

At GrowAxis, we are empowering sub-brokers/ Authorised Person by providing them with end-to-end support to grow their business efficiently and sustainably. From ready-made marketing tools, digital onboarding solutions, and research-driven client engagement strategies to training on business growth techniques. 

GrowAxis acts as a growth partner rather than just a service provider for any new or existing sub-brokers. By leveraging our experience and technology, sub-brokers can attract new clients, increase trading activity, and generate higher revenue—without the need for large infrastructure or complex systems. Call us now to know your business plan. We have a separate business model for each sub-broker or Authorised Person.

Also read, 5 Smart Ways to Reactivate Dormant Clients and Boost Broking Revenues