Motilal Oswal Franchise Review

By TBS Team | March 29, 2024

Motilal Oswal franchise is considered one of the most successful business opportunities available today for those interested in getting into stock broking services sector. If you are looking to attain new heights of success in the stock broking industry, you can choose become a Motilal Oswal broking partner and say yes to numerous amazing growth opportunities. Here, we have highlighted a detailed Motilal Oswal franchise review that would let you know each & every aspect of the stock broker’s franchise business. 

In this Motilal Oswal franchise review, you will get to know the fundaments of this franchise, commission model, eligibility criteria, sub broker offers, overall franchise cost, and other crucial aspect of Motilal Oswal franchise.

About Motilal Oswal Franchise

Established in the year 1987, Motilal Oswal Securities Ltd (MOSL) is one of the first stockbroking companies in India.

Being one of the top full-service stockbrokers in India, Motilal Oswal is renowned for its speedy client service, portfolio management services, and trading applications.

The support that Motilal Oswal Franchise offers to its clients is the main cause in the main reason behind its popularity among sub-brokers. Multiple business choices and the degree of flexibility one has as a sub-broker of Motilal Oswal are another factor that enhances the franchise model.

As a stock broker, Motilal Oswal offers a wide range of financial goods and services, such as equity, commodities, derivatives, foreign exchange, and other investment instruments including SIP, mutual funds, IPO investments, insurance, and many more.

Motilal Oswal Franchise – Snapshot

Company type Public
Broker type Full Service 
Headquartered in Mumbai, India
Founded Ramdeo Agarwal
Year of establishment 1987
Days required for SB Code Activation 14 Days
Days/weeks for Payout 31 Days

 

Due to the wide range of services offered by Motilal Oswal, including Demat accounts, online trading accounts, intraday trading, and more, the business potential for sub-brokers are doubled. With more than 500 cities in India, the Motilal Oswal Franchise or Motilal Authorized Person Program has a vast network of over 1500 sub-broker offices.

All current sub-Brokers will be transformed into Authorized Persons in accordance with the updated SEBI criteria. The Motilal Oswal Authorized Person will continue to operate under the same duties, obligations, and business principles as Sub-Brokers. The only difference in the process that makes it quicker and simpler is the registration procedure.

Benefits of Motilal Oswal Franchise

There are several benefits of taking Motilal Oswal franchise including:

  • Several years of legacy – Since its inception in 1987, Motilal Oswal has been offering unparalleled stock broking services to traders and investors
  • Premium technology – The full-service stockbroker believes in the utilization of high-end technology which ultimately helps traders in doing stock trading faster, easier, and effectively. Above all, the back-office system ensures seamlessly delivery of emails and SMSs to clients in a timely fashion.
  • Training support – It offers all types of assistance, from financial to technical, when setting up the office, with a swift and reliable support system. In addition, they offer you training courses that will hone your technical, financial, and interpersonal abilities and enable you to attract more clients.
  • Superior-quality advisory – The full-service stockbroker has a strong hand in the research sector and give their sub-brokers access to all technical and fundamental analysis reports so that they may entice additional clients.

Motilal Oswal Franchise Review – Business Models

Motilal Oswal franchise has four business models including:

  1. Franchise/Sub-Brokership/Authorized Person
  2. Remisier
  3. Employee to Entrepreneur Program
  4. Channel Partner
  • Motilal Oswal Franchise/Sub-Brokership/Authorized Person

The most popular and lucrative Motilal Oswal Franchise branch is this one. For Motilal Oswal, the franchisee serves as a branch office or a retail location. In addition to taking on obligations, the franchisee uses the Motilal Oswal name to draw in new customers. The franchisee must be in a desirable area with reliable internet and effective communication routes.

There is a security deposit which may range from INR 25,000 to 100,000. Additionally, as previously noted, the cost of the infrastructure must be taken into account when choosing an authorized person or sub-broker for Motilal Oswal. For the Motilal Oswal franchisee, an investment must be made in a desirable area.

Benefits of Becoming a Motilal Oswal Franchise/Sub-Brokership/Authorized Person

 

  • Being a part of a reputed business that’s been operating since 1987
  • Earn attractive compensation you several tools that can help you get more clientele
  • A dedicated relationship manager for assistance
  • Help in the establishment of the franchisee
  • Receive training related to the investment sector
  • Choose from a wide range of packages and offers for your clients

 

  • Motilal Oswal Remisier

Under this business model of Motilal Oswal franchise, you will be entitled to recommend Motilal Oswal services to your clients. The more individuals you sign up, the more commission you will make from the Motilal Oswal Remisier branch. Given the simplicity and clarity of the position, the individual in this branch does not need to invest a significant amount of money in locating a site for his tasks.

To become a remisier, you must pay a security deposit that starts at INR 10,000 and can go as high as INR 25,000. Because you may send customers to Motilal Oswal instead of having to contact with them directly, the infrastructure costs are significantly reduced. They assume that client’s obligations.

Benefits of a Motilal Oswal Remisier

  • Easy source of income by working this way
  • Opportunity to develop communication skills due to extensive personal interactions
  • Easy registration procedure as compared to an authorized person
  • No reliance on any external factors

 

  • Motilal Oswal Employee to Entrepreneur Program

Comparing this branch to Motilal Oswal Authorized person since it largely focuses on those who work for brokerage companies. The arrangement differs somewhat from the franchisee model since the candidate has financial market experience.

As the employee develops into a businessperson, he and not the employer are the ones who benefit from possibilities for advancement. Many employees who have a strong track record and exceptional performances choose this branch since it allows them to make money for themselves instead of their company.

You must put down a minimum security deposit of INR 25,000 and a maximum security deposit of INR 100,000 to join this branch. However, this branch covers a range of advantages.

Associated Benefits

  • An amazing growth opportunity
  • Great opportunity to advance yourself and prioritize your own goals
  • Direct compensation
  • Quite simple to establish your own working methods
  • The duties and functions in this branch will be less extensive

 

  • Motilal Oswal Channel Partner

Motilal Oswal Channel Partner is the ideal branch for a Motilal Oswal sub-broker who wants to extend and diversify the services.

By providing services like currency, initial public offerings (IPO), mutual funds, and insurance, a sub-broker can broaden his scope of services and boost his earning potential. For sub-brokers that want to scale and broaden their business strategy, there is this branch.

The first security deposit must be provided in the amount of INR 100,000, however depending on the services the sub-broker wants to add, this amount may go as high as INR 1,000,000. When he initially joined as a Motilal Oswal sub-broker, the infrastructure cost would have remained the same.

Motilal Oswal Franchise – Eligibility Criteria

If you want to become a Motilal Oswal franchise, you would have to meet the following criteria.

  • You should have a registration with SEBI
  • You should have experience in stock market & finance sector and a good clientele
  • You must agree to the design and structured developed by Motilal Oswal
  • You must follow the policies designed by Motilal Oswal
  • Your age should be minimum 18 years
  • You should have a graduate degree
  • Having a certificate in stock broking would help you strengthen your position as a sub-broker

Motilal Oswal Franchise – Documents Required

To apply for Motilal Oswal franchise, you need to furnish following documents.

  • Identity proof like PAN or AADHAAR card
  • Address proof
  • Proof of residence
  • Age proof
  • Graduation mark sheet
  • Certifications proof
  • SEBI registration certificate
  • Investment proof
  • Security deposit cheque

Motilal Oswal Franchise – Security Deposit

Investment for the Motilal Oswal Sub Broker Model ranges from INR 25,000 to Rs. 100,000. The price of a Motilal Oswal Master Franchise ranges from Rs. 100,000 to Rs. 1,000,000. The Remisier model attracts a security deposit of between Rs. 10,000 and Rs. 100,000.

There is no room for a security deposit in that model because the corporation does not support the Referral Program.

Security deposit needed for Sub Broker Program Rs. 25,000 – 100,000
Security deposit required for Referral Program NA
Preliminary investment required for Master Franchise Model Rs.1,00,000 – Rs.10,00,000
Security deposit required for Partner / Remisier Model Rs. 10,000 – 10,00,000


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The Conclusion – Motilal Oswal franchise

Thought the attractive revenue sharing model of Motilal Oswal franchise is impressive, it awards superb growth opportunities to people looking to move ahead in their career with confidence. For example, the full-service stock broker offers a free Demat account to clients. Moreover, it also offers free access to research reports and advisory support to its valuable clients for a specific period.

Additionally, they have extended loan terms and decreased margin money, which has resulted in a high revenue sharing ratio. They can help you with any financial advice you require while you set up your workplace. It is expected that this Motilal Oswal franchise review would help you in taking an informed decision. 

FAQs

Does Motilal Oswal offer sub-broker model?

Yes, the full-service stock broker offers sub-broker model to people. This way, they can invest a large sum of money towards sub-broker registration and getting attractive commission down the line.

How much is Motilal Oswal Sub Broker Commission?

There is a bigger percentage of revenue that you will keep when taking into account the entitlements, specifically in terms of the income. The stockbroking firm offers adjustable revenue sharing, with the sub-broker receiving somewhere between 60% and 80% of the proceeds.

What is the overall cost of Motilal Oswal franchise?

For sub-broker model, one would have to invest an amount of INR 25000 – INR 1,00000.

What is partner sharing in Motilal Oswal franchise?

According to the framework, considering the job tasks and the delegation, the partner share is fairly defined and equitable. The partner’s stake rests between 15% and 30%, while the broker keeps between 85% and 70%.

Is there any fee for Motilal Oswal Partner Program?

This stockbroker’s partner model incurs no cost. One must provide the stock broker the sum specified therein, which can vary INR 10,000 and 25,000.

Is the Motilal Oswal business successful?

Motilal Oswal Franchise is unquestionably successful. The broker gives partners a 50% to 80% revenue split. This also demonstrates that if you provide more leads for the broker, you might earn more money from MO than you might anticipate.

What is the salary of a Motilal Oswal sub-broker?

The actual revenue amount may change. More specifically, it depends on how much traffic and leads can be transmitted from a sub-broker to the MO. The greater commissions you receive from the broker the more clients you refer.

What is the time take for registration?

It takes between 3 and 5 days to get registered as a sub-broker. 

What revenue sharing can be expected if one decides to take Motilal Oswal franchise programme?

Depending on the sort of partnership model you choose, there are several income sharing arrangements. In average, it falls between 40 and 60 percent for the Motilal Oswal Franchise model, 50 to 60 percent for the channel partner, and 20 percent for the reseller.

Disclaimer: This blog is written for educational purpose only. Data, Securities, Advisory and Quotes mentioned here are for guidance only. Doing research by investors itself is highly recommended.

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