A sub broker franchise is a business opportunity where you partner with a stockbroking company and build a client base under its brand and support system. For new partnerships, the regulatory term used today is Authorised Person (AP). Choice provides franchise support, technology, marketing assistance and access to multiple financial products for its partners.
What Is a Sub Broker Franchise?
A sub broker franchise allows you to build a financial services business by partnering with a stockbroker. As an Authorised Person, you can help onboard clients, assist them with account-related processes and connect them with the broker’s investment and trading services.
While sub broker franchise remains a commonly used business term, SEBI discontinued fresh registration of sub-brokers as a market intermediary in 2018. Existing sub-brokers were given the option to migrate to the Authorised Person or Trading Member framework.
Why Choose a Choice India Franchise?
Choice provides support designed to help partners build and manage their business, including:
- Dedicated franchise support
- Local relationship manager
- Marketing and sales support
- Partner dashboard through Choice Connect
- Training and guidance
- Access to multiple financial products
- Timely commission payouts
Choice currently reports 13 Lakh+ clients, 217+ local branches, 67K+ franchise partners and 5K+ team strength.
Who Is an Authorised Person?
An Authorised Person works with a stockbroker and helps connect clients with the broker’s services. The AP can assist with client onboarding, documentation and general support while operating under the terms of the agreement with the stockbroker.
For a Choice franchise, the AP can offer products across areas such as equity, mutual funds, insurance, loans, bonds, NCDs, NPS and NFOs, subject to applicable product and regulatory requirements.
Choice Sub Broker Franchise Eligibility
Choice states that individuals looking to become an AP must be 18 years or older. Applicants should also be willing to build and manage a client-focused financial services business.
The registration process requires KYC and other applicable documents, followed by AP formalities and verification.
How to Start a Choice Sub Broker Franchise?
The process can be completed through these basic steps:
- Step 1: Register with Choice
- Step 2: Submit KYC and required documents
- Step 3: Complete AP formalities and agreements
- Step 4: Complete verification and registration requirements
Once the process is completed, the partner can access the applicable Choice systems and support.
Choice Sub Broker Franchise Cost
There is no single fixed franchise cost applicable to every applicant. Choice states that a refundable security deposit may apply, along with applicable AP registration fees and documentation costs.
The current Choice page lists AP registration fees of ₹17,700 per NSE segment, ₹14,160 per BSE segment, ₹2,360 for MCX and ₹1,180 for NCDEX. Applicable fees and requirements should be confirmed during onboarding.
How Much Can an Authorised Person Earn?
Earnings depend on factors such as client acquisition, trading activity, products offered and the commercial agreement with the broker. Therefore, there is no fixed monthly income.
Choice currently has an account-opening incentive based on the client’s margin and completion of two NSE trades:
| Margin | Incentive per Account |
|---|---|
| ₹1–₹20,000 | ₹200 |
| ₹20,001–₹40,000 | ₹350 |
| Above ₹40,001 | ₹600 |
The offer is subject to the applicable terms.
How to Choose the Best Sub Broker Franchise?
When looking for the best sub broker franchise, don’t compare only the commission or initial investment. Consider the complete business proposition, including:
- Brand reputation
- Revenue-sharing or commission structure
- Franchise cost and refundable deposit
- Technology and partner dashboard
- Marketing support
- Training
- Relationship manager support
- Range of financial products
- Client servicing and operational support
A franchise that provides the right combination of technology, support, products and commercial terms may be more suitable for your business goals.
FAQs about Choice India Sub Broker Franchise
What is a sub broker franchise?
A sub broker franchise is a partnership model where an individual or business works with a stockbroker to acquire and support clients under an agreed business arrangement.
What is an Authorised Person?
An Authorised Person is a person or entity registered with the relevant stock exchange to act on behalf of a stockbroker under the applicable framework.
How can I become a Choice Authorised Person?
You can register with Choice, submit the required KYC documents, complete AP formalities and undergo the applicable verification and registration process.
How much does a Choice sub broker franchise cost?
The cost depends on the applicable setup and compliance requirements. A refundable security deposit may apply, along with AP registration and documentation charges.
How much can a Choice Authorised Person earn?
There is no fixed income. Earnings depend on client activity, business generated and the commercial terms agreed with Choice.