Last updated on September 14, 2023
Kotak Securities is counted among the top full-service broking houses in India and offers a plethora of stock broking and other services in a remarkable way. The broking house has its headquarters in Mumbai, Maharashtra. For those looking to grab an excellent business opportunity in the stock broking landscape, taking Kotak Securities franchise is undoubtedly a fabulous choice. Here is a full-fledged Kotak Securities Franchise review that covers every single element of this franchise opportunity like overall incurring cost, business models, commission model, eligibility, documents required, etc.
Given your specific business needs, you can choose from a wide range of business models provided by Kotak Securities. You can get to know the major benefits of these models in this Kotak Securities franchise review that would help you in decide whether you should catch this franchise opportunity or not.
About Kotak Securities Franchise
Kotak Securities is a subsidiary of Kotak Mahindra Bank is the full-service stockbroking firm and was established in 1994. It is one of the major stockbroking firms that has established itself in the industry. It was among the first businesses to introduce the sub-broker programme.
The full-service stock broker is headquartered in Mumbai and offers a wide range of services to its partners and clients. Uday Raj Kotak started Kotak Securities, which is among the top 5 financial institutions in India. Trading in IPOs, mutual funds, tax-free bonds, stocks, currencies, and other financial products is possible with Kotak.
Furthermore, via more than 2K business partners that collaborate with the broker, Kotak Securities has a fabulous presence in more than 450 locations throughout India.
Kotak Securities Franchise – Snapshot
|Broker type||Full Service|
|Headquartered in||Mumbai, India|
|Founded||Uday Raj Kotak|
|Year of establishment||1994|
|Days required for SB Code Activation||21 Days|
|Days/weeks for Payout||35 Days|
Kotak Securities Franchise Review – Business Models
This bank-based stockbroker has made a number of collaboration arrangements available to companies interested in collaborating with Kotak Securities. In fact, a few of those have only lately been made available. There are two types of franchise models presented by Kotak Securities – Sub Broker and Remisier.
Kotak Securities Sub Broker /Remisier
A Kotak Securities Sub broker is a business associate who works with the firm’s clients and brings in new clients for his own clientele. The nicest thing about working as a Kotak Securities Sub broker is that you can start your business right away because you are already bringing in clients.
Referral programmes and master franchises are not offered to consumers of Kotak Securities Franchise.
When compared to other models, Kotak Securities’ models are less costly. A person may partner with Kotak Securities through the Sub Broker Model of Kotak Securities.
One may make money with the Kotak Securities Remiser Model by receiving a commission for every potential customer they introduce.
Benefits of Becoming A Kotak Securities Sub-broker
Here are a few advantages you would receive if you worked as a sub-broker for Kotak Securities:
Major Brand Name Association – Working for the major brand name is the main benefit of becoming a sub-broker. To win the clients’ confidence, a brand identity is necessary. The fact that Kotak Securities is a well-known company would make people trust you more easily.
Included features – The firm offers a wide range of included features. They guide you through each step of company setup and provide you the skills you need to succeed as a sub-broker.
High Earnings – Working with them can help you make a lot of money. From 50% to 70% of the customer’s profit may be yours to keep.
Customized Offerings – Each customer is different. Hence the company provides customized services for each customer so that you do not have to worry about it. You can focus on nurturing and convincing the customer instead.
Marketing Support and Training – marketing support and training are given by the company. All your marketing campaigns are handled by the company which includes different promotional activities and events.
Kotak Securities Franchise Cost
A security deposit of between Rs. 20,000 and Rs. 2, 00,000 is required by Kotak Securities Sub Broker Investment under their Sub Broker concept. For the Remisier model, a security deposit of Rs. 30,000 is required to be paid to Kotak Securities Franchise Cost.
In its Security Deposit model, the organisation does not support Referral Programme and Master Franchise.
|Security deposit for Sub Broker Program||Rs.20,000 – Rs.2,00,000|
|Security deposit for Referral Program||NA|
|Initial investment required for Master Franchise Model||NA|
|Deposit required for the Partner / Remisier Model||Rs.30000|
Kotak Securities Franchise – Infrastructure Requirement
The Kotak Securities sub-brokers and Kotak Securities franchisees must adhere to certain infrastructure standards laid out in the Kotak Securities Partner standards.
If the partners meet these requirements, the corporation will only let them to use their licences for trading. The following are the Kotak Securities Sub Broker Infra Requirements:
- There should be a minimum of 5 employees at the brokerage franchise.
- The office must have a trading station
- All the office cabins should have phone and internet access.
- Research facility is a must
- The sub-broker is required to have a minimum 250 square foot office space.
Kotak Securities Franchise – Eligibility Criteria
If you’re interested in working as a sub-broker with Kotak Securities, the following information can help you qualify:
- 2-3 years of experience in related sector such as the broking industry, as a main or sub-broker’s employee, or as a sub-broker.
- The minimum age shouldn’t be less than 21.
- Client testimonials and a successful track record of collaboration with the companies
- Academic qualification, including completion of 10th grade.
- MBA graduates and graduates in finance are given precedence.
Kotak Securities NetInvest Ace
NetInvest Ace is suitable for people who are already involved in activities such as IPO, mutual fund, etc., and want to expand their client base by including trading products like equities.
These folks can be a part of this business enhancement program of Kotak Securities which would help them boost their business.
This is a popular program, as many investment advisors find this to add to their income stream. This allows them to advise their existing clients to undertake trade and investing activities.
This programme is well-liked since it allows many financial advisers to increase their revenue. As a result, they can urge their current clients to engage in trading and investing.
The major advantages of Kotak Securities NetInvest Ace are:
- A new income stream
- No effect on your existing client base and business process
- A wide range of trading products to choose from
- Expanded business profile
- Easy expansion of the client base
From the aforementioned information, it can be concluded that Kotak Securities franchise is a great business choice after reviewing all of the franchise’s specifics. Although the cost to start up the franchise as a sub-broker is slightly more than that of the other businesses, the risk is wholly justified.
The bank-based full-service stockbroker offers a large client base for you to work on if you have some expertise in stockbroking and trading and believe you can succeed in the field.
Hopefully, the aforementioned information in this Kotak Securities Franchise review would help you in paving the best way forward.
How can I become a partner with Kotak Securities?
You must submit an application online at Kotak Securities Portal. Once there, you will find a tab labelled “Become a Partner.” The necessary information must be entered, followed by submission and upload of the necessary files.
How much can I make each month working for Kotak Securities Partners?
Your clientele’s income generation capacity and base will determine the precise amount you can make. The sub-brokers, however, produce on average more than INR 1 lakh each month.
Is there a sub-broker model at Kotak Securities?
Kotak Securities Sub Broker is present, indeed. It is referred to as the Business Associate model, nevertheless.
The job description remains the same, and it includes customer identification, pitching to them, securing them, and helping them with their trading.
Exactly whose income share is the highest?
You may make the most money as a sub-broker or a Kotak Securities franchise out of the three business types that Kotak Securities provides. Up to 70% of the money is yours to keep.
What are the downsides of Kotak Securities franchise?
The unavailability of robo-advisory and algo trading are the major downsides of Kotak Securities franchise.
How much money does a partner make from a Kotak Securities franchise?
The income sharing percentage is based on the Kotak Securities Franchise business model that you are engaged in. It varies between 30 and 50% for sub brokerage, between 50 and 80% for a NetInvest Ace, and between 10 and 20% for a NetInvest Direct. Numerous variables affect how much money you really make.