What is a sub broker (and why the term is changing)
A sub broker is an intermediary who acts on behalf of a SEBI-registered stock broker, helping retail investors open demat accounts, place trades, and access market services. In return, the sub broker earns a percentage of the brokerage their clients generate.
Here’s a wrinkle most articles skip: in 2018, SEBI eliminated the “sub broker” category entirely. What we used to call sub brokers are now officially called Authorised Persons (APs). The change was regulatory housekeeping — the business itself didn’t change. But it matters when you fill out forms, sign agreements, or pay tax: you’re an “Authorised Person,” not a “sub broker.”
Quick summary
- India had over 17 crore demat accounts as of early 2026 — and the number of authorised persons (sub brokers) is growing in step with it.
- You can start a sub broker franchise with ₹0 deposit (Zerodha, Paytm Money) or pay up to ₹5 lakh (full-service brokers like Motilal Oswal).
- Revenue share ranges from 10% (referral) to 80% (top-volume authorised persons at full-service brokers).
- Realistic monthly earnings: ₹6,000–₹15,000 at 30 active clients; ₹30,000–₹50,000 at 100 clients; ₹5–10 lakh at 500+ clients with mutual fund trail.
- SEBI replaced the “sub broker” category with “Authorised Person” in 2018 — the terms mean the same thing in practice today.
How sub brokers make money — the 3 revenue models
Every sub broker partnership in India falls into one of three earnings structures. Understanding which one you’re signing up for matters more than the headline commission number.
1. Revenue share model (most common)
You earn a percentage of the brokerage your clients generate. The percentage usually scales with volume — bring in more brokerage, get a bigger share. Typical ranges:
- Discount brokers (Zerodha, Upstox, 5paisa): 20–50% share, often slab-based
- Full-service brokers (Angel One, Motilal Oswal, Sharekhan): 50–70% share typical, with some brokers advertising higher tiers that require very high sustained volume
Worked example: your 50 clients generate ₹2 lakh in brokerage one month. At a 50% revenue share, you earn ₹1 lakh. At 30%, you earn ₹60,000. The slab matters as much as the broker.
2. Referral / introducer model
You refer clients, the broker handles everything else. Commission is usually fixed (Zerodha pays 10% lifetime, for example) and there’s no deposit, office, or compliance burden on you. The trade-off is a smaller cut and no operational control. Best for digital marketers, financial bloggers, and influencers with audience reach.
Important update: An NSE circular effective August 2024 ended unregistered referral commissions — even Zerodha’s 10% program was affected. Read more on zero-deposit sub broker options that still work in 2026.
3. Hybrid model with cross-sell
Full-service brokers let APs earn from multiple products: equity brokerage, mutual fund commissions, insurance distribution, PMS referrals, loans against shares, bond sales. Total monthly income from an established client base often exceeds pure brokerage share. This is how senior APs at Motilal Oswal, IIFL, and Sharekhan earn ₹5–15 lakh per month.
Top 15 sub broker franchises in India compared (2026)
The table below covers every meaningful sub broker franchise option in India. Sort by what matters most to you — capital, revenue share, or speed to launch.
| Broker | Type | Security Deposit | Revenue Share | Office Required? | Time to Activate | Review |
|---|---|---|---|---|---|---|
| Zerodha | Discount | ₹0 (₹1,000–₹11,000 reg fees) | 10–40% | No | 3–7 days | Details |
| Angel One | Full-service | ₹50,000–₹3,00,000 | Up to 50% | Yes | 10–15 days | Details |
| IIFL Securities | Full-service | ₹50,000–₹2,00,000 | 60–75% | Yes | 10–14 days | Details |
| Motilal Oswal | Full-service | ₹1,00,000–₹5,00,000 | 50–80% | Yes | 14–21 days | Details |
| Sharekhan | Full-service | ₹70,000+ | 60–70% | Yes | 10–15 days | Details |
| ICICI Direct | Full-service | ₹50,000–₹1,00,000 | 50–75% | Yes | 14–21 days | Details |
| Kotak Securities | Full-service | ₹50,000–₹2,00,000 | 50–70% | Yes | 14–21 days | Details |
| Upstox | Discount | ₹0–₹25,000 | 30–60% | No | 5–10 days | Details |
| 5paisa | Discount | ₹10,000–₹50,000 | 40–60% | Optional | 7–10 days | Details |
| Paytm Money | Discount | ₹0 | Disclosed on apply | No | 5–7 days | Details |
| SMC Global | Full-service | ₹25,000–₹2,00,000 | 65–75% | Yes | 10–15 days | Details |
| Anand Rathi | Full-service | ₹50,000+ | 50–70% | Yes | 14–21 days | Details |
| Axis Direct | Full-service | ₹50,000+ | 50–70% | Yes | 14–21 days | Details |
| HDFC Securities | Full-service | ₹1,00,000+ | 50–70% | Yes | 14–21 days | Details |
| Edelweiss | Full-service | ₹50,000+ | 55–70% | Yes | 14–21 days | Details |
Figures sourced from broker partner program pages and public franchise disclosures as of May 2026. Advertised top-tier revenue shares (such as 70–80% claims at some full-service brokers) often differ from what most APs actually receive — real-world payouts cluster in the middle of the published range and require high sustained volumes to reach the top. Confirm exact slab structures and retention rules directly with the broker before signing.
Discount broker vs full-service broker franchise — which fits you?
This is the most important decision in the entire process. Get it wrong and you’ll spend ₹2 lakh on an office you didn’t need, or you’ll lose ₹50 lakh in lifetime earnings by picking a low-revenue-share discount partner when you had the network for a full-service partnership.
Pick a discount broker partnership if:
- You have ₹0–₹50,000 to invest
- Your client acquisition is digital (social media, YouTube, Telegram, content marketing)
- You’re treating this as a side income initially
- Your network are self-directed traders who don’t need advisory
- You don’t want to manage an office, staff, or compliance overhead
Pick a full-service broker partnership if:
- You have ₹50,000–₹5 lakh to invest
- You’re going full-time on this
- Your network is in-person — local businesspeople, HNI relationships, an offline community
- You can sell or arrange advisory services (insurance, mutual funds, PMS — not just stocks)
- You want the broker’s brand to do some of the client-trust work for you
If you’re stuck between the two, lean toward whichever matches your existing network. The biggest predictor of sub broker success is whether your first 30 clients close in your first 90 days — and that depends entirely on who you already know.
How much can you actually earn? (Real income breakdown)
Let’s get past the marketing fluff. Here’s what real sub brokers earn at three stages of business maturity, based on industry-typical client behaviour and the commission slabs above.
Stage 1: Solo, digital-first — 30 active clients
- Average brokerage per client: ₹1,500/month
- Total monthly brokerage generated: ₹45,000
- At 20% revenue share (Zerodha entry slab): ₹9,000/month
- At 30% revenue share (Angel One entry slab): ₹13,500/month
- Realistic net income: ₹6,000–₹12,000/month
- Costs: minimal — phone, laptop, internet, NISM certification one-time
Stage 2: Small office, 100 active clients
- Average brokerage per client: ₹2,000/month (slightly higher — better client targeting)
- Total monthly brokerage: ₹2,00,000
- At 30% revenue share (Zerodha mid slab): ₹60,000
- At 40% revenue share (Angel One mid slab): ₹80,000
- Office + staff costs: ₹30,000–₹50,000/month
- Realistic net income: ₹30,000–₹50,000/month
Stage 3: Established AP with team — 500+ active clients
- Average brokerage per client: ₹2,500/month
- Total monthly brokerage: ₹12,50,000
- At 50% revenue share: ₹6,25,000
- Add mutual fund trail (1% on ₹50 cr AUM = ₹50 lakh/year, ~₹4 lakh/month)
- Office + 4 staff + tech: ₹2–3 lakh/month
- Realistic net income: ₹5 lakh–₹10 lakh/month
→ Use our Sub Broker Income Calculator to model your own scenario based on your client count, broker choice, and average brokerage.
One number you’ll see floated online: “average sub broker salary in India is ₹4 lakh/year.” That’s misleading. It includes both Stage 1 part-timers and Stage 3 senior APs in one average. Use the stage breakdown above to estimate where you’ll actually land.
Eligibility and SEBI requirements
SEBI’s actual requirements for becoming an Authorised Person are surprisingly modest:
- Minimum age: 18 years (most brokers require 21+)
- Education: No formal SEBI requirement; most brokers want at least 10+2, preferably a graduate
- No criminal record in financial fraud or market manipulation
- No prior SEBI disciplinary action
- NISM Certification: Series VIII (Equity Derivatives) is strongly recommended; some brokers make it mandatory before activation
- Net worth: SEBI sets no minimum for APs (this differs from main brokers who need ₹1 crore+). Individual brokers may set their own net worth norms.
Required documents (universally needed):
- PAN card
- Aadhaar card
- Address proof (utility bill, rental agreement, etc.)
- Educational certificates
- Bank statement (last 6 months)
- ITR for last 2 financial years (most brokers ask)
- Passport-size photographs
- Cancelled cheque or bank attestation
Step-by-step: How to become a sub broker
The summary version. Each step has details on the dedicated how-to guide.
- Decide your model — discount vs full-service, online vs office (the framework above)
- Verify eligibility — age, education, no SEBI bars
- Shortlist 2–3 brokers — use the comparison table; never pick based on one factor alone
- Submit application — directly with the broker’s franchise/partner team
- Pay registration/deposit — varies wildly (₹0 to ₹5 lakh)
- Complete NISM Series VIII — online exam, ₹1,500, takes a week to clear
- SEBI registration via the broker — they handle the paperwork; you sign
- Exchange registration — NSE/BSE generates your AP code
- Set up infrastructure — if needed: office, internet, trading terminals, basic team
- Go live and onboard your first clients — most APs aim for 10 clients in first 30 days
Total timeline: 3–4 weeks for discount brokers, 4–8 weeks for full-service brokers (longer because of office setup and physical verification).
How to choose the right sub broker franchise — 5-question framework
Walk through these in order. Each question narrows your shortlist meaningfully.
Question 1: What’s your starting capital?
- ₹0–₹15,000: Zerodha Partner, Paytm Money, Upstox referral tier
- ₹15,000–₹50,000: 5paisa, Upstox AP, Angel One entry tier, SMC Global low tier
- ₹50,000–₹2,00,000: Most full-service brokers — Angel One, IIFL, Sharekhan, ICICI Direct, Kotak
- ₹2,00,000+: Motilal Oswal elite tier, HDFC Securities, Anand Rathi premium
Question 2: Are you going full-time, or alongside another job?
Part-time → discount broker partnership. The full-service path is hard to do well without dedicated hours.
Question 3: Is your network mostly online or in-person?
Online (social media following, financial blog, YouTube channel, Telegram community) → discount broker. In-person (local business community, family wealth circles, HNI relationships) → full-service broker, ideally one with strong local branch presence.
Question 4: Do you want to offer advisory, or just execution?
Advisory = full-service broker with research support (Motilal Oswal, IIFL, Sharekhan). Execution-only = any discount broker.
Question 5: How important is the broker’s tech and back-office quality?
If your clients are active traders (intraday, F&O), platform reliability is non-negotiable. Test the broker’s trading app yourself before signing. Zerodha Kite, Upstox Pro, and Angel One Trade are industry benchmarks. Some full-service brokers still run dated tech.
Common pitfalls and what brokers won’t tell you
Most sub broker comparison guides online read like sales brochures. Here’s what they leave out — and what you need to know before signing any partnership agreement.
Revenue share targets can be revoked
That “80% revenue share at top tier” needs you to hit a brokerage volume target — typically ₹3–5 lakh/month of brokerage generated. Miss the target for two consecutive months and brokers can drop you to the lower slab. Read the fine print on slab-retention rules.
The August 2024 referral commission ban
NSE issued a circular effective August 15, 2024 prohibiting brokers from paying referral commissions to individuals not registered as Authorised Persons. This affected Zerodha’s 10% referral program and similar offerings at other brokers. If you’re planning to do “informal referrals,” that loophole is closed. You must be a registered AP to earn commission legally.
Brokerage rate cuts after onboarding your clients
Brokers can — and do — change their pricing. When Zerodha cut F&O brokerage to a flat ₹20 in 2015, every existing sub broker’s earnings dropped proportionally overnight. You have no veto over your broker’s pricing decisions. This is a structural risk of the model.
Compliance burden grows quickly
You’re responsible for KYC verification on your clients, AML monitoring, suspicious transaction reporting, and grievance handling. At 100+ clients this is real work — most APs end up hiring at least one compliance person around the 150-client mark.
Client churn if the broker raises fees
If your broker hikes brokerage or adds new charges, your clients leave. They blame you for putting them with that broker, not the broker for the price hike. You absorb the relationship damage. Pick brokers with stable, transparent pricing histories.
You can’t be a sub broker for two brokers simultaneously
Exclusivity is standard. If you want to work with both Zerodha and Angel One, you can’t — pick one. Some APs get around this by registering family members with the other broker, but that’s a workaround, not a legitimate model.
You’re bound by a Professional Code of Conduct
Every broker shares a Professional Code of Conduct document at activation — Zerodha, Angel One, IIFL, all of them. It governs how you can market the partnership, what return claims you cannot make (anything implying guaranteed returns is generally banned), how you handle client data, and how you escalate complaints. Violations can lead to immediate partnership termination — and brokers do enforce these clauses. Most new APs skim the document; the ones who read it carefully avoid the suspensions that happen 6–12 months in over marketing language. Treat it as binding from day one.
Final recommendation by profile
| Profile | Best Choice | Why |
|---|---|---|
| Total beginner, ₹0 capital, online network | Zerodha Partner Program | No deposit, simple onboarding, strong brand pull for client acquisition |
| Mid-capital (₹50K), going full-time, mixed network | Angel One | Strong revenue share, decent tech, marketing support, broad product mix |
| High-capital (₹2L+), HNI network, full-service ambition | Motilal Oswal Elite Partner | Strong revenue share at elite tier, top-tier research, premium clientele alignment, multiple cross-sell products |
| Strong digital audience (blogger, YouTuber) | Paytm Money or Upstox referral | Zero capital, easy onboarding flow for digital traffic |
| Local market focus (small city, tier-2/3) | Sharekhan or IIFL | Largest branch networks in non-metro India; local brand recognition |
| Bank-channel client base (existing relationships) | ICICI Direct or HDFC Securities | 3-in-1 account integration is a strong closing tool with bank clients |
Frequently Asked Questions
Is sub broker still a legal category in India?
The “sub broker” registration category was eliminated by SEBI in 2018. Today, what was called a sub broker is officially registered as an “Authorised Person” (AP). The business is identical; only the regulatory label changed.
What’s the minimum investment to start a sub broker franchise?
You can start with ₹0 through Zerodha’s Partner Program or Paytm Money. Most discount brokers charge ₹0–₹25,000. Full-service brokers typically require ₹50,000–₹5,00,000 as security deposit.
Can I be a sub broker for two brokers at the same time?
No. Exclusivity is standard across all broker partnership agreements. You can be registered as an AP with only one broker at a time.
What’s the realistic sub broker salary in India?
“Salary” is misleading — sub brokers earn commission, not salary. Realistic monthly earnings range from ₹6,000 (entry, 30 clients) to ₹10 lakh+ (established, 500+ clients with mutual fund cross-sell). Most active sub brokers earn ₹30,000–₹80,000/month.
Can I become a sub broker without any deposit?
Yes — Zerodha, Paytm Money, and Upstox’s referral tier require no security deposit. The trade-off is typically lower revenue share and less broker support. Full guide to zero-deposit options here.
Can I work as a sub broker from home?
Discount broker partnerships: yes, almost always. Full-service broker partnerships: usually require a registered office for compliance and physical verification, though “office” can be a small one-room setup in many cases.
How long does SEBI registration take?
The SEBI/exchange registration itself takes 7–14 working days once your broker submits the application. Total onboarding time including documentation: 2–4 weeks for discount brokers, 4–8 weeks for full-service.
Is NISM certification compulsory?
Not by SEBI law for general APs, but Series VIII (Equity Derivatives) is required for anyone handling F&O. Most brokers make it mandatory at onboarding regardless. Plan for it.
Sub broker vs mutual fund distributor — which earns more?
Sub brokers earn more in active markets (high brokerage volume); mutual fund distributors earn more passively (trail commission on AUM continues without active trading). Many APs do both. Long-term, MF distribution scales better; short-term, sub broker income is higher.
Can students become sub brokers?
Technically yes if they’re 18+, but practically very few brokers approve student applications without 10+2 completion and some financial market knowledge. Wait until graduation in most cases.
What if I want to switch brokers later?
You can. You’ll need to formally terminate the existing AP agreement and complete onboarding with the new broker. Your existing clients may or may not move with you — they own their demat accounts, and switching brokers means them opening fresh accounts elsewhere. Expect to lose 30–50% of clients in any broker switch.
Do sub brokers need GST registration?
Yes, if your annual commission income exceeds ₹20 lakh (the GST threshold for services). Brokers will deduct TDS regardless. Plan for GST registration around the time you hit 100–150 active clients.
How are sub broker earnings taxed?
As business income or professional fees, depending on your registration structure. Most APs file as professionals under Section 44ADA (presumptive taxation) up to ₹50 lakh/year, which simplifies tax compliance significantly. Consult a CA.
What is an Authorised Person code?
When SEBI/the exchange approves your AP registration, they assign a unique code. This code identifies you on every trade your clients place — and is how the broker tracks your earnings. Without this code, you’re not legally earning AP commission.
Best sub broker for absolute beginners?
Zerodha Partner Program for digital-first beginners (zero deposit, easy onboarding). Angel One for beginners with offline networks who want some support and structure. Avoid jumping straight to elite tiers of full-service brokers without proven client-acquisition ability.
Your next step
You have three reasonable paths from here:
Calculate your potential earnings with our Sub Broker Income Calculator — model different broker + client-count scenarios.
Or — if you already know which broker fits — go directly to that broker’s deep-dive review: Zerodha, Angel One, Motilal Oswal, IIFL, or Sharekhan.
Disclaimer: Information on this page is sourced from broker partner program disclosures, SEBI/NSE/BSE public circulars, and industry reporting verified as of May 2026. Commission rates, deposit requirements, and revenue share tiers are subject to change at the broker’s discretion. Verify directly with your chosen broker before signing any partnership agreement. TheBestStockBroker.com is not a SEBI-registered investment adviser or research analyst. Affiliate relationships with some brokers exist but do not influence the editorial assessment above.