Top 7 Strategies to grow a Sub-Broker Business in India

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A sub broking business in India is lucrative due to the immense potential in securities trading in the country. However, not every sub broker ends up being successful. Often, a sub broker’s business starts with a lot of promise but ends up performing lower than expectations. So, how can a sub broker ensure that his business grows?

This blog explains the top seven strategies to grow a sub broker franchise business in India.

Additional Read: What is sub broker

Strategies to help sub brokers accelerate their business

  • Find the right stockbroker to work with: The first and the most important thing for a sub broker to do is to find the right stockbroker to work with. A sub broker depends upon a broker for his brand name and online trading platform. Unless a broker has a good reputation and a hassle-free online trading platform, it will be extremely difficult for a sub broker to expand his business. Then, a sub broker also needs to ensure that the revenue-sharing arrangement with a broker is such that it helps him grow his business. Let us take the case of Bajaj Broking, a popular and reputed stockbroker in India, as it is backed by Bajaj Finance. Bajaj Broking helps its sub brokers grow their earnings through a mix of an attractive revenue-sharing model, high commissions, and lucrative rewards.
  • Offer a variety of investment products: A sub broker cannot limit himself to just a few investment products if he wants to attract a diverse clientele. Even if his clientele is not diverse and he has only a handful of clients, it is possible that a client is interested in having a diverse portfolio by investing in stocks, initial public offerings (IPOs), bonds, debentures, and even derivatives. In this case, if he limits himself to only stocks, then he will not be able to meet the requirements of his investor. To offer a variety of investment products, it is necessary for a sub broker to work with a broker, who, in turn, has many products to offer. After all, a sub broker sells a broker’s products and not his own products. In India, there are quite a few brokers with a diverse portfolio. Take Bajaj Broking for example. Bajaj Broking lets people invest in shares, bonds, IPOs, mutual funds, national pension system (NPS), and even US stocks. So, if you want to work as a sub broker, find a broker who has a diverse portfolio of products like Bajaj Finance.
  • Help your clients learn about the capital market: As a sub broker, the worst thing to do is to impose your suggestions on your clients. Instead, a sub broker should educate his clients, explain to them the nuances of several kinds of investments, and then let them make their own decisions. When a sub broker educates his clients, it builds a level of trust between him and his clientele, which can go a long way in them having a fruitful business association.
  • Provide clients’ feedback to the broker: A sub broker is an intermediary between his clients and the broker he works for. If the clients have a certain feedback for the broker, then a sub broker should pass on that feedback to the broker. Moreover, if a sub broker thinks that the feedback is genuine and important, then he should try to convince the broker to implement the suggestions provided by his clients. This will help his clients; it will also help his and his broker’s business grow.
  • Meet other sub brokers and industry professionals: As in any other industry, it is very important for a sub broker to network. For this purpose, he should meet his fellow sub brokers by attending conferences in his city. To know about conferences, he can get in touch with industry associations like CII and FICCI. Such associations maintain a calendar of events, and they can help a sub broker meet other sub brokers. Apart from that, a sub broker should also meet other professionals working in the area of investment, like CFAs and CAs, because that can help him broaden his perspective.
  • Have a firm grip over market trends: The difference between a sub broker and an average investor is that the former has a much stronger grip over the market trends than the latter. A sub broker needs to keep an eye on news and developments on a daily basis and form an informed opinion to guide his clients. On specific days, like the day of the budget announcement, he should be prepared well in advance to provide insights to his clients in real-time.
  • Understand all regulatory requirements: A sub broker should be thorough with all the regulatory requirements. This will ensure that his business operations are fully compliant with all the rules. He should also know whether his broker has met all the regulations or not because if his broker’s business is affected, then his business will get impacted as well.

Additional Read: 7 Benefits of Being a Sub-Broker

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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