Stock markets have been going up steadily over the past few years. It is also seeing a huge number of Demat accounts being opened. People are increasingly actively putting money into different financial vehicles to get higher returns. Switching to online trading platforms is another big move. However, the latter has made things harder for people who aren't very tech-savvy and don't know how to use these internet platforms efficiently.

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A stockbroker connects their clients with the stock market through a broker partner program. They support their clients with trade executions and show them how to set up a demat account. They also offer other services that go along with this. Some broking firms now have systems that let sub brokers work with them and share their duties. Most of the time, these programs pay sub brokers through revenue-sharing plans. Before we talk about how to become a sub broker, let's find out how much the setup of a sub broker franchise costs.

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How to open a franchise for a sub broker?

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1. Requirements for eligibility

In addition to having market knowledge and other abilities, a sub broker or authorised person needs to have at least a higher secondary education or something similar. The educational requirements are kept to a minimum because this job focuses more on the person's knowledge and experience.

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2. Broking Company

To have a successful sub broking career, it's important to choose a broking firm that works well with you. You need to identify companies that have sub broker or AP programs. Then they need to find a company that is well-known, has built-in support systems, and pays a good commission rate.

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3. Send in your application

Getting in touch with a broking firm is easy. Most companies that offer these kinds of services have people who are in charge of talking to people about them. There will be instructions on how to send in the documents and proof that correspond with the application form. As part of this process, a form must be sent to SEBI, and the broking firm will help the sub broker do that.

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4. Setting up the infrastructure

Once SEBI has finished its background check, the sub broker can start setting up an office and signing a contract with the broking firm. And in some circumstances, the broker offers training programs.

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5. Get clients

Getting clients is also part of setting up a sub broker business. The sub broker needs to build their own client base, which means they need to do business development work. Some sub brokers even run marketing campaigns of different sizes.

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Authorised Partner Franchise Costs

What do authorised partner franchises cost? Authorised partner franchise cost breakdown:

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●      Initial Setup Costs

Broking firms usually require an initial cost to create an authorised partner franchise, depending on reputation and other considerations. SEBI and other regulatory bodies charge for licenses and approvals. Authorised partner franchise costs vary by company.

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●      Office setup and infrastructure

Setting up an office requires expensive equipment and other fees. Any recognised partner must have an office to perform properly and comply with regulations. The total authorised partner registration fees depend on whether the office is rented or owned and on furniture and fixture investment.

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●      Costs of Operations

The authorised partner pays rent, utilities, and staff salary. Additionally, you must pay the authorised partner's security deposit. The cost of opening an official partner franchise in India depends on operations.

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●      Promotion and Marketing

Stock broking franchise charges include marketing and promotion if the licensed partner invests. This covers advertising, digital marketing, and event costs. Consider authorised partner franchise prices to understand these costs.

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●      Development of business

In addition to marketing costs, the authorised partner must spend for customer acquisition and company development. Expert staff salary and other company development charges may be included. These factors raise India's authorised partner franchise cost.

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●      Regulatory and Compliance Costs

Compliance with SEBI norms and guidelines may require a large authorised partner franchise initial investment. This covers audit and legal consultancy fees.

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●      Risk Management

Costs for risk management must be considered. Market fluctuations, regulatory changes, and operational issues are major risks that must be managed. Risk management techniques and related actions are essential for franchise success, and the permitted partner will pay these costs.