How sub broker commission actually works in India
Sub broker commission — technically called Authorised Person (AP) commission since SEBI’s 2018 recategorisation — is a percentage share of the brokerage your introduced clients generate. The percentage isn’t fixed. It moves up and down based on three factors most aspiring partners don’t realise:
- Your monthly brokerage generation — every broker uses slab-based commission. The more brokerage your clients generate, the higher your revenue share.
- The product mix — equity delivery, intraday, F&O, currency, and commodity all carry different brokerage structures, and your share may differ across them.
- Your partner tier — full-service brokers like Motilal Oswal and IIFL run multiple partner programs (channel partner, remisier, elite partner) with different commission structures.
Most online guides quote a single percentage per broker. The reality is more layered, and that’s what this page maps out.
Quick summary
- Sub broker (authorised person) commission in India ranges from 10% to 60% of generated brokerage, depending on broker and slab.
- Discount brokers cap at 40–50%; full-service brokers reach 50–60% at elite tiers — though hitting those top slabs requires sustained high volume.
- Beyond equity brokerage, full-service partnerships pay commission on mutual funds (1% trail), IPOs (₹100–₹500/application), insurance, PMS referrals, and loans against shares — often doubling effective payout.
- The August 2024 NSE circular ended pure-referral commissions to non-registered individuals — to earn any cash commission today you must be a registered Authorised Person.
How sub broker commission actually works in India
Sub broker commission — technically called Authorised Person (AP) commission since SEBI’s 2018 recategorisation — is a percentage share of the brokerage your introduced clients generate. The percentage isn’t fixed. It moves up and down based on three factors most aspiring partners don’t realise:
- Your monthly brokerage generation — every broker uses slab-based commission. The more brokerage your clients generate, the higher your revenue share.
- The product mix — equity delivery, intraday, F&O, currency, and commodity all carry different brokerage structures, and your share may differ across them.
- Your partner tier — full-service brokers like Motilal Oswal and IIFL run multiple partner programs (channel partner, remisier, elite partner) with different commission structures.
Most online guides quote a single percentage per broker. The reality is more layered, and that’s what this page maps out.
Commission rates compared — all 15 major brokers
The table below shows the typical revenue share range for each broker’s main authorised person program. “Entry slab” is what you earn from your first month; “top slab” is the published maximum, usually requiring high sustained brokerage volume.
| Broker | Type | Entry Slab | Mid Slab | Top Slab | Slab Trigger (₹ brokerage/mo) |
|---|---|---|---|---|---|
| Zerodha | Discount | 20% | 30% | 40% | Top slab at ₹2L+ generated |
| Angel One | Full-service | 30% | 40% | 50% | Top slab at ₹3L+ generated |
| IIFL Securities | Full-service | 35% | 45% | ~55% | Tiered with research bundle add-on |
| Motilal Oswal | Full-service | 35% | 45–55% | ~60% (Elite tier) | Elite tier needs ₹5L+ generated + minimum deposit |
| Sharekhan | Full-service | 35% | 45% | ~55% | Tiered; 7,000+ partner network |
| ICICI Direct | Full-service | 30% | 40% | ~55% | Bank tie-up adds 3-in-1 conversion bump |
| Kotak Securities | Full-service | 30% | 40% | ~50% | Tiered |
| Upstox | Discount | 25% | 35% | ~50% | Full AP tier (referral tier is lower) |
| 5paisa | Discount | 30% | 40% | ~50% | Tiered |
| Paytm Money | Discount | Disclosed on application | Not publicly published | ||
| SMC Global | Full-service | 40% | 50% | ~60% | One of the most generous entry slabs |
| Anand Rathi | Full-service | 35% | 45% | ~55% | Tiered; strong wealth management cross-sell |
| Axis Direct | Full-service | 30% | 40% | ~55% | Bank-channel partner advantage |
| HDFC Securities | Full-service | 30% | 40% | ~50% | Premium brand pull at HNI level |
| Edelweiss | Full-service | 35% | 45% | ~55% | Strong research, structured products mix |
Figures sourced from broker partner program disclosures verified May 2026. Advertised top-slab rates often differ from real-world payouts — most APs cluster in the entry-to-mid slab range. Confirm exact terms directly with the broker before signing.
Want to model what these rates mean for your client base? Use the Sub Broker Income Calculator to plug in your scenario.
The three revenue-sharing models you’ll encounter
Not every partner program works the same way. When you read a broker’s partner agreement, identify which of these structures you’re signing up for — the differences matter for your earnings predictability.
1. Pure brokerage revenue share (most common)
You earn a percentage of the brokerage your clients generate, slab-based. Examples: Zerodha Partner Program, Angel One Authorised Person, Upstox AP. Simple to track, predictable, but capped — no upside if your client trades a lot at a low brokerage rate.
2. Flat fee per acquisition + ongoing share
You receive a fixed amount (₹500–₹2,000) for each new demat account opened that completes KYC and trades within a window, plus a smaller ongoing brokerage share. Used by some discount broker referral programs. Front-loaded income but lower long-term ceiling.
3. Hybrid model (full-service brokers)
Brokerage share + product distribution commissions (mutual funds, insurance, PMS, NCDs, IPOs) + occasional bonuses for crossing targets. This is where mature authorised persons at Motilal Oswal, IIFL, Sharekhan, and Anand Rathi earn their highest payouts — equity brokerage share alone rarely tells the full story.
The income streams the comparison tables miss
Most sub broker comparison websites focus only on equity brokerage share. If you’re signing with a full-service broker, you should know about these other commission streams — they often add 30–60% to your gross monthly payout.
Mutual fund trail commission
Distribute mutual funds to your clients and earn a trail commission of around 0.5–1% per annum on AUM. Example: ₹10 crore in MF AUM under your code generates ₹50,000–₹1 lakh per year in passive trail income. The compounding effect over five years is significant — many APs end up earning more from MF trail than from active brokerage.
IPO and NCD commission
Full-service brokers pay ₹100–₹500 per successful IPO application routed through your code, plus 0.25–0.75% on NCD (non-convertible debenture) subscriptions. In a busy IPO calendar year, this can add ₹20,000–₹50,000/month for an active AP.
Insurance distribution
If your broker has an insurance arm (HDFC, ICICI, Kotak, Sharekhan via Mirae Asset, Motilal Oswal), you can cross-sell life and health insurance with commissions of 5–35% in year one and 5–10% trail thereafter. Highly variable but a meaningful add-on.
PMS and AIF referral fees
Refer clients to your broker’s portfolio management or alternative investment fund offerings and earn 1–3% upfront plus annual trail. Ticket sizes are large (PMS minimum is ₹50 lakh), so even a single client conversion is material.
MTF (Margin Trading Facility) revenue share
When your clients use margin trading, the broker charges interest on the financed portion. Some partner agreements include a share of this interest income — typically 10–25% of the MTF interest generated by your clients’ books.
Loans against shares (LAS) commission
Refer a client for a loan against their pledged shares and earn 0.5–1% of the loan amount as a one-time commission. For HNI clients with ₹50 lakh+ portfolios, individual referral commissions of ₹25,000–₹50,000 are common.
What you’ll really take home — three worked examples
To make the percentages tangible, here are three worked examples at different scales, including the hidden income streams above.
Example 1: Discount broker partner, 50 clients
| Type | Details |
|---|---|
| Setup | Zerodha Partner Program, 50 active clients, ₹1,500 avg brokerage each |
| Total brokerage generated | ₹75,000/month |
| Revenue share applied | 20% (entry slab; under ₹1L threshold) |
| Gross brokerage commission | ₹15,000/month |
| Additional streams | None — discount partnership; no MF/IPO/insurance cross-sell |
| Operating costs | ₹3,000 (home-based) |
| Net monthly income | ₹12,000 |
Example 2: Full-service AP, 150 clients
| Type | Details |
|---|---|
| Setup | Angel One AP, 150 clients, ₹2,500 avg brokerage, ₹5 cr MF AUM |
| Total brokerage generated | ₹3,75,000/month |
| Revenue share applied | 50% (top slab; above ₹3L threshold) |
| Gross brokerage commission | ₹1,87,500/month |
| MF trail (1% on ₹5 cr / 12) | ~₹4,200/month |
| IPO commissions (avg) | ₹8,000/month |
| Operating costs (office + 1 staff) | ₹45,000/month |
| Net monthly income | ~₹1,55,000 |
Example 3: Elite tier AP, 400 clients
| Type | Details |
|---|---|
| Setup | Motilal Oswal Elite Partner, 400 clients, ₹3,000 avg brokerage, ₹30 cr MF AUM, occasional PMS conversions |
| Total brokerage generated | ₹12,00,000/month |
| Revenue share applied | ~60% (elite tier with deposit) |
| Gross brokerage commission | ₹7,20,000/month |
| MF trail (1% on ₹30 cr / 12) | ₹25,000/month |
| PMS/AIF commission (avg) | ₹40,000/month |
| Insurance + IPO + NCD | ~₹25,000/month |
| Operating costs (office + 4 staff) | ₹2,20,000/month |
| Net monthly income | ~₹5,90,000 |
When and how to negotiate your commission slab
Brokers don’t advertise it, but commission slabs are negotiable in two specific situations — and most new partners don’t realise this until they’ve left money on the table for years.
Situation 1: You have proven volume from elsewhere
If you’re switching from another broker and can document your historical brokerage generation (statement showing ₹3L+ monthly brokerage), you can request entry directly at the mid or top slab. Most full-service brokers will accommodate this; discount brokers rarely will because their slab structure is more automated.
Situation 2: You’re bringing a high-value institutional or HNI book
If your prospective client base includes HNI clients (₹1 crore+ portfolios), corporate treasury relationships, or NRI accounts, you have negotiating leverage. Brokers compete hard for these segments and will customise commission structures including front-loaded bonuses, accelerated MF trails, and PMS revenue share above standard tiers.
What’s typically negotiable
- Starting slab (skip the entry tier)
- Slab thresholds (lower the volume needed for each tier)
- Cross-product commission splits (MF, insurance, PMS)
- One-time joining bonus or marketing support credit
- Office rent reimbursement or branch tie-up arrangements
What’s not negotiable
- SEBI/exchange registration fees
- Compliance requirements and KYC processes
- Professional Code of Conduct terms
- NISM certification requirements
Hidden costs that reduce your effective commission
The headline revenue share is gross, not net. Several deductions can eat into your actual payout — be aware before signing.
- Technology and platform fees — some brokers charge ₹1,000–₹5,000/month for partner dashboard access, CRM tools, or research platform usage
- Marketing/branding charges — full-service brokers sometimes deduct branded collateral costs from your monthly payout
- Statutory compliance levies — annual exchange fees, audit charges, and AML reporting tools may be split with you
- Clawback clauses — if a client closes their account within 6–12 months, the broker may claw back the initial commission paid to you
- TDS — brokers deduct 10% TDS on commission payments above ₹20,000/month; this is recoverable in your annual tax return but creates working capital drag
- GST — above ₹20 lakh annual commission income, you must register for GST. Most brokers handle the input credit, but compliance is on you.
Commission rate trends to watch in 2026
Three structural shifts are reshaping sub broker economics this year:
Continued discount broker margin compression
Zerodha, Upstox, and 5paisa have been gradually lowering their brokerage rates (zero brokerage on equity delivery is now industry-standard). When brokerage shrinks, so does your share. Plan for a 5–10% effective payout decline per year at discount brokers, offset by client volume growth.
Full-service brokers leaning into product distribution
Brokers like IIFL, Motilal Oswal, and Anand Rathi are pushing partners harder on mutual fund and PMS distribution. New partner programs offer higher MF trail splits (some up to 60% of trail) and PMS commission acceleration — but require minimum AUM targets to qualify.
Tech-enabled partner programs from new entrants
Dhan, mStock by Mirae Asset, and others are launching tech-forward partner programs with transparent dashboards, real-time payout tracking, and sometimes higher entry slabs to attract talent away from established brokers. Worth watching if you’re not already locked in.
Frequently Asked Questions
What is the typical sub broker commission percentage in India?
Typical sub broker commission ranges from 20% to 50% of generated brokerage, with full-service brokers reaching up to 55–60% at elite tiers. Discount brokers generally cap at 40–50%. Real-world payouts cluster in the 30–45% range for most active authorised persons.
Who pays the highest sub broker commission in India?
Among published partner programs, Motilal Oswal’s Elite Partner tier and SMC Global offer some of the highest revenue shares (around 55–60% at top slabs). But “highest commission” doesn’t mean “highest income” — the broker’s overall brokerage rate, slab triggers, and cross-sell product mix matter as much as the headline percentage.
How is sub broker commission calculated?
Commission is calculated monthly as: total brokerage generated by your clients × your applicable revenue share slab. Some brokers segment by product (equity vs F&O vs commodity) with different shares for each. Most pay out by the 7th–15th of the following month after TDS deduction.
Do sub brokers get commission on mutual funds?
Yes, at full-service brokers (and some discount brokers like Zerodha Coin). Mutual fund commission is paid as trail — typically 0.5–1% per annum of the AUM under your code. This is passive income that continues as long as your clients hold the funds.
Is sub broker commission paid monthly?
Yes, almost universally. Brokers calculate total commission generated in a calendar month and pay out within 7–15 working days of month-end. Some smaller brokers pay quarterly; ask before signing.
What is the difference between sub broker commission and AP commission?
None in practice. SEBI replaced the “sub broker” category with “Authorised Person” in 2018, so what people call “sub broker commission” is technically AP commission today. The terms are used interchangeably. Read the full explainer here.
How much commission do remisier-tier sub brokers earn?
Remisier is an older partner tier still used by some full-service brokers (notably Motilal Oswal). Remisiers typically earn 25–40% of brokerage — lower than full Authorised Person tiers because remisiers don’t take on KYC or compliance responsibility. Trade-off: less revenue, less administrative burden.
Is sub broker commission taxable?
Yes, fully taxable as business or professional income. Brokers deduct 10% TDS on monthly commission payments. Most APs file under Section 44ADA (presumptive taxation) up to ₹50 lakh annual income. Consult a CA for structure.
Can I get a higher commission rate if I bring more clients?
Yes — that’s how slabs work. As your clients’ total monthly brokerage rises past each threshold, your revenue share moves to the next slab. Sustaining the top slab requires consistent monthly volume; miss the threshold for two consecutive months at some brokers and you can be dropped back.
Do discount brokers pay lower commissions than full-service brokers?
Yes, on a percentage basis. Discount brokers cap at 40–50%; full-service can reach 55–60%. But discount brokers also charge clients lower brokerage rates, so the absolute rupee figure on your share can be similar at scale. Discount partnerships also have no office, marketing, or staff overhead.
What is the average sub broker income per client in India?
Highly variable. An average active retail client generates ₹1,500–₹3,000/month in brokerage. At a 35% revenue share, that’s ₹525–₹1,050/month per client to the sub broker. HNI clients can generate 5–10x that. Use total clients × average brokerage × your share to estimate.
Are there any sub broker programs that pay 80% commission?
Some broker partner pages historically advertised “up to 80% revenue share” claims. In practice, real-world payouts to active authorised persons cluster in the 30–60% range. The 70–80% figures usually require exceptional sustained brokerage volumes (₹10 lakh+/month) and may apply only to specific product segments. Treat advertised top-slab claims with healthy skepticism and ask for slab-trigger documentation in writing.
Your next step
Now that you understand the commission landscape, here’s where to go from here:
- Calculate your expected income with our Sub Broker Income Calculator — model different brokers and client volumes
- Read the complete sub broker franchise guide — the pillar covering eligibility, process, and decision frameworks
- Compare zero-deposit options at sub broker franchises without deposit
- Walk through registration on the step-by-step how-to guide
Disclaimer: Commission figures are based on broker partner program disclosures and industry reporting verified as of May 2026. Revenue share percentages, slab structures, and product commission rates are subject to change at each broker’s discretion. Real-world payouts may differ from advertised top-slab figures. Always confirm exact commercial terms directly with the broker before signing any partnership agreement. TheBestStockBroker.com is not a SEBI-registered investment adviser; this is educational content. Affiliate relationships with some brokers exist but do not influence editorial assessment.
