Edelweiss Franchise / Partner / Sub Broker Review

Edelweiss Franchise business has seen considerable growth in the past few years. As the sub-broker gained market reputation and visibility, the demand for the franchise increased. The broker has a large employee base and presence in various parts of the country. These numbers place the Edelweiss Franchise business among the top stockbrokers of the country. The franchise also offers offline presence and strength.

Edelweiss Franchise Review

Edelweiss was incorporated in the year 2008 as Edelweiss Group Ltd. with Edelweiss Group as its parent company. Headquartered in Mumbai, India, the financial service providing company has a presence in over 122 cities in India and abroad. The net profits reported by the company in the past few years indicate that the company has made good business deals.

Edelweiss offers the facility to invest and trade in major asset classes, including equities, debts, mutual funds, IPOs, Currency Derivatives, commodities, and Futures, and Options. It also offers other platforms, including ESOP Funding, Structural Products, Housing Loan, PMS Insurance, LAP, and LAS, apart from primary and secondary market investments.

Edelweiss is a full-service stockbroking firm with an active base of approximately 1,13,514 clients and is expanding both organically and inorganically.

Edelweiss is a registered member of NSE, BSE, F&O, MCX, and NCDEX and is also an AMFI registered distributor of Mutual Fund.

Reviews & Ratings
Criteria Ratings
Offline Presence 7.5/10
Experience 7.5/10
Market Share 6/10
Market Reputation 7.0/10
Brand Equity 7.5/10
Products and Services 7.5/10
Revenue Sharing 7.0/10
Reliability 7.5/10
Overall Rating 7/10

Types of Edelweiss Sub-Broker Partnership Models

Every stockbroking firm in India offers a separate business dimension to its potential partners. This ensures that parties from varied backgrounds and business aspirations can connect with the firm offering a win-win situation for both parties.

Likewise, Edelweiss Broking too offers three different business partnership models, including:

  • Edelweiss Franchise Owner
  • Edelweiss Partner
  • Edelweiss Elliance

Each of the three business models offered by Edelweiss comes with its own set of requirements at the business background, infrastructural, and monetary levels. Below is a detailed analysis of what is required under different business partnership models.

Edelweiss Partnership Criteria

  • Edelweiss Franchise Owner: For parties looking forward to becoming a franchise owner with this full-service stockbroking firm, meeting the following prerequisites is essential. The parties need to qualify the following requirements:
  • It should have a strong background and market reputation along with a track record in financial services.
  • He/she should have a minimum experience of 2 years in any of the roles of a stockbroker, main-broker, remisier, MF distributor, Insurance advisor, etc.
  • He/she should have an updated understanding of the rules and regulations set up by the stockbroking regulators, exchanges, and other relevant parties from time to time.
  • Registration with SEBI or some other regulatory body.
  • Relevant certifications to have a competitive edge.
  • An office space of 250 square feet or more in a commercial area.
  • Staff at the office space to serve the potential clients.
  • An investible surplus of Rs.2 Lakh.

Though meeting these requirements is essential, it is up to the broker to let off some of the requirements if the sub-broker offers some other business strength.

  • Edelweiss Partner: The eligibility requirements in the Partner business model’s case are in line with those offered under the Franchise Owner model except for the office space and high initial investment amount. Under this business model, the infrastructure setup required is a desktop/laptop with an internet connection and a voice recorder.

This implies that the party does not need to have an office space or an initial capital investment to enter this particular business model.

Furthermore, the broker offers incentives to the sub-broker based on the monthly gross revenue brought in by the sub-broker.

The incentives offered are as follows:

Monthly Gross Revenue Incentives Offered
30,000 A non-exclusive dealer to place orders
30,000 to 75,000 A place to sit with a terminal port & a common telephone to use
75,000+ A place to sit, a system with a terminal port, and a telephone connection to use
  • Edelweiss Elliance: It is a unique business partnership model offered by Edelweiss, where one can share the existing client base with the broker for opening the Free Edelweiss Demat Account.

Every account opened through these contacts the Edelweiss Elliance gets a fixed rate referral price assuming that the converted client will either:

Transfer securities worth Rs.5000 from the old Demat account to the new one

Buy new securities worth Rs.5000 and adds those securities to the new Edelweiss Demat Account.

Failure to meet these conditions results in the refusal of the referral price.

The requirements for this particular business model are quite simple and straightforward. They include business experience, preferably in the finance domain, and graduate education with a valid PAN and Aadhaar Card.

 Edelweiss Franchise Cost

Edelweiss Franchise requires the sub-brokers to bring in a capital investment of Rs.2 lakh to get started. However, this amount is required only to be deposited by sub-brokers opting for the Franchise Owner business model.

The other related business models do have some fees, but the overall capital requirement is not that high.

Most of the franchise cost that is brought in by the sub-broker is refundable. Once the sub-broker decides to continue further, the amount of capital invested is returned.

A few exchange registration-related costs are involved, and the sub-broker needs to pay these charges depending on the exchange he wants to get himself registered.

There are some other charges as well, which are disclosed upon discussion.

Edelweiss Franchise Revenue Sharing

The revenue-sharing model followed at Edelweiss Franchise is set at 60:40 and can extend up to even 80:20 percent depending upon the level of business generated by a sub-broker from his client base.

Here, 60% of the revenue generated by the sub-broker stays with him as business revenue, while 40% of the brokerage goes to Edelweiss Franchise.

Edelweiss Franchise business maintains reasonable timelines. Whatever amount the sub-broker makes gets transferred to their account on fixed timelines.

How to partner with Edelweiss?

To become an Edelweiss sub-broker, you need to have a good client base and be a good risk-taker. The sub-broker should also be NISM certified in equity, derivatives, currency, and capital market and should also be registered as a service tax person.

The franchise owner needs to have a minimum experience of 2 years in the offered products and services and should possess a good understanding of stock exchanges, SEBI, commodity exchanges, and other regulatory bodies.

The franchising code is received within 12-15 working days to start the business. The documents required for the registration process are as follows:

  • A valid PAN Card
  • A valid Aadhaar Card and address proof
  • Educational certificate
  • He/she should be 21 years of age
  • A cancelled cheque
  • 2 photos
  • A rent agreement of the office space.

Edelweiss Franchise is one of the popular growing franchise businesses in the country. The sub-brokers can choose from the different business models based on their initial investment capacity and revenue generation objective. However, the sub-broker should carefully study the business models and then make a wise choice.

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