IDBI Direct Franchise / Partner / Sub Broker Review

Last updated on: September 16, 2023

Set up in the year 1993, IDBI Capital Markets and Securities Ltd., also known as IDBI Capital is a full-service stockbroker in India. It is a wholly owned subsidiary of IDBI Bank Limited and offers its clients to trade in Equities, Mutual Funds, Future & Options, and IPOs etc. IDBI is a reliable and renowned brand in the financial services sector. Here is a detailed IDBI Direct franchise review that includes every element of this leading full-service stockbroker and help you take the right decision down the line.

From a remarkable offline presence to a huge clientele, exceptional customer support, value-centric business models, and others, IDBI Direct franchise is a wonderful business opportunity for those who want to get into the field of stock trading. So, let’s explore the details mentioned in this IDBI Direct franchise review and know more about the stockbroker.

About IDBI Direct Franchise

A wholly owned subsidiary of IDBI Bank Limited, IDBI Direct is the stockbroking arm of the banking group and offers a plethora of products & services that help people get better returns on their investment. 

Established in December 1993 by Mr. Rakesh Sharma, IDBI CAPITAL MARKETS & SECURITIES LTD. (IDBI Capital) has a net-worth of nearly INR 3 billion at present and has more than 200 employees in 17 branches, extended across 17 cities in the country. The Retail Broking & Distribution division of IDBI Capital offers its clients to trade in Equities, F&O, Mutual Funds and IPOs, through the investing portal, www.idbidirect.in. The stockbroker also sells Third Party Products, like Fixed Income Products, Mutual Funds, etc. They are counted amongst the top 10 MF distributors in India.

The full-service stockbroker is known for its outstanding trading services, best-in-class customer support, insightful research & advisory, fabulous franchise models and competitive brokerage. Let’s get to know more about IDBI Direct franchise in this review post. 

IDBI Direct Franchise – Snapshot

Company type Public
Broker type Full Service Broker
Headquartered in Mumbai, India
Founded Mr. Rakesh Sharma
Year of establishment 1993
Days required for SB Code Activation 31 Days
Days/weeks for Payout 21 Days

The firm has grown since it started because of its reputation for providing the most affordable brokerage prices. You may either stroll into one of the more than 200 IDBI Direct Sub Brokers locations or work with the broker to open a franchise location.

You may get some amazing returns on investment as an IDBI Direct Partner. What qualifications are necessary, and what choices do you have? Learn more by reading on.

Benefits of IDBI Direct Franchise

Some of the major benefits of becoming a partner of IDBI Direct are listed below:

  • A trusted and well-known brand in the finance sector. 
  • Easy to promote financial products & services.
  • Seamless access to almost all trading methods, including trades conducted by phone, web or portal-based trading, and mobile apps.
  • Availability of an assortment of services are under one roof. Depending on their risk tolerance, clients may find any kind of service they need.
  • A dedicated service desk ready to assist the business partners.
  • Customers receive committed customer service at all times and locations.
  • The broker offers the newest techniques and technology to make trading simple for the traders.
  • Adherence to the open-book approach to company philosophy.
  • Customers would gain from the reputable and high-quality study. ICICI Direct Franchise – Business Models

IDBI Direct Franchise – Business Models

There are three business models provided by IDBI Direct. They are:

  1. Sub-broker or Business Associate
  2. Online Remisier
  3. Master Franchise
  • Sub-broker

A sub-broker or business associate is a popular form of business model that practically all broking firms offer to their clients is a sub-broker. Clients who wish to do business under this paradigm must have some prior knowledge of the financial market. In addition to serving the present customer by assisting them with trading-related issues, the business partner is required to bring on new clients.

This support can take the shape of carrying out transactions on their customers’ behalf, helping them with any account-related issues, giving them ongoing research and advice, etc.

A sub-broker is required set up an office with the necessary equipment and must deposit some security money with the primary broker.

  • Online Remisier

Another model provided by IDBI Direct to individuals looking to launch a company with them is Online Remisier. A Remisier is obliged to handle all of the responsibilities of a sub-broker without facing the need to set up an office or other infrastructure. They are just required to look for new clients and connect them with the stockbroker

There is no formal education requirement or prerequisite work experience needed to establish a company as a Remisier. You may tell those who are new or fresh that this model suits them.

For those who already have a regular job or own a small business, this approach can function as a passive income source. However, this strategy may function as a respectable financial level provided you can consistently bring a suitable size.

  • Master Franchise

An IDBI Direct Master Franchise is a comparatively larger conglomerate that oversees both its own operations and those of smaller franchises or sub-brokers in the area. A single partner is typically given a master franchise, which is an exclusive model, in a certain region.

This type of business strategy is appropriate for well-established stock market companies with a significant customer base and background in the industry. At the same time, it is necessary that you comprehend several stock market ideas well enough. The specifications, revenue sharing, customer goals, down payments, duty levels, etc. are often maintained competitive and work well for larger organizations.

Eligibility Criteria for IDBI Direct Franchise

There are various IDBI Direct Franchise Eligibility Requirements, just as with any other Stock Broker, to join their network. To sign up with them as a Sub broker, you must at the very least have a degree. To establish your franchise with them, you must also have a certain amount of prior experience.

However, it would be beneficial to have some expertise, particularly in the stockbroking industry. You need a SEBI certificate in order to start with them as part of the IDBI Direct Sub Broker Eligibility. If you meet all of these requirements, you may begin right away by submitting your KYC paperwork.

IDBI Direct Franchise – Infrastructure Requirement

IDBI Direct Franchise Infra Requirement is quite simple which makes it one of the most preferred business development opportunities among entrepreneurs. They just require the Sub Broker to keep one specific office space allocated to them that is at least 300 square feet in size and has three minimum workers working for them on this company.

For anybody to operate a business for them, additional fundamental necessities such telephone lines, internet access, trading terminals, etc. are also necessary. The only IDBI Direct Partner Requirements they have are these few.

IDBI Direct Franchise – Revenue Sharing Charges

Once again, they take a fairly open approach when discussing the IDBI Direct Franchise Revenue. For all the work their business partners do, they give them a fair share. They provide their Sub brokers with a revenue share of 40% to 70% of the money they make from their company.

The size of the subbroker’s company and their participation to the total business are two factors that influence the marginal gap. You can be confident, as a businessperson, that they will provide you a decent deal as an IDBI Direct Sub broker Commission.

IDBI Direct Franchise – Deposit Requirement

The IDBI Direct Franchise Cost is comparable to that of the majority of industry leaders. They demand a security deposit that ranges from a minimum of 50,000 to a maximum of 300,000.

Again, this depends on the kind of Sub Broker they work with. A greater security deposit would undoubtedly be requested if a partner were beginning a business for the first time without any prior experience because of the increased risk.

Business Model Deposit Required
Sub Broker INR 50K – INR 3 Lacs
Referral Program NA
Partner/Remisier NA
Master Franchise NA

IDBI Direct Franchise Review – The Verdict

Being a well-known brand in the finance sector, IDBI Direct is a proven name to go with. IDBI direct franchise is a wonderful opportunity for businessmen to join hands with the leading full-service stockbroker. From low-cost investment to profitable business models, wide-ranging client support, and excellent returns, there are several reasons to tap this IDBI direct franchise opportunity. Hopefully, the aforementioned information in this IDBI direct franchise review would help you understand this opportunity in detail. 

FAQs

What are major benefits of partnering IDBI direct franchise?

The major benefits of tapping this franchise opportunity are best-in-class partner support, various business models, reputed background, partner training, and attractive payout.

Does IDBI Direct have an authorized person?

Yes, IDBI Direct does provide an authorized person program via which a person or organization can apply to represent IDBI Direct as a sub-broker and provide customers with a range of financial goods and services.

The IDBI Direct Referral Agents: Who are they?

There is an associate program offered by IDBI Direct that enables people or organizations to join and recommend customers to IDBI Direct’s financial offerings.

How much can I make as an IDBI Dealership or Direct Partner?

As an IDBI Direct Partner or Dealership, your commission or earning potential might change depending on a number of variables, including the volume of business produced by your clients and the kinds of financial products and services you provide.

Is it possible to check and monitor my earnings with IDBI Direct?

In the case of an authorized person, associate partner, or partnership firm of IDBI Direct, it is possible to track the overall earnings through their web portal or mobile app.

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