How much can a sub-broker earn?
The dictionary definition of a broker is “a person who buys and sells goods and assets for others”, in return for which he commands a fee or charge, which is called “brokerage”. In India, investors can buy and sell shares or similar investment products through Angel Broking. Angel Broking appoints sub-brokers, who are paid a commission for each transaction their clients make. This commission is what acts as a primary source of income.
How much a sub-broker earns, therefore, depends on two things: one, the amount in percentage shared by the broker, and two, the number of clients he or she can attract. Therefore, income will depend mainly on his or her abilities.
Let’s look at the various factors that affect how much a sub-broker earns:
- Choosing the right broker: Since income will depend on commissions, it’s essential to choose the right broker. Angel Broking, offers generous commissions.
- Support and infrastructure: Another factor that affects sub-broker earnings is the kind of infrastructure and facilities that a broker provides. It’s hard to acquire clients without marketing, technology, and other support, thus impacting income. Angel Broking offers excellent infrastructure and support to its investors, including a tech interface with features like digital marketing, lead management system and business dashboard. There’s also a comprehensive training for sub-brokers so that they can hone their skills.
- Knowledge: When you ask the question: how much does a sub-broker earn in India? There’s one crucial factor that contributes a lot to it, and that is knowledge. However, he or she must know everything there is to know about stocks so that they’re in a position to advise clients on the right shares to buy. Sub-brokers also need to know a bit about the economy and track global financial and geo-political events since these also affect stock prices.
- Costs: How much a sub-broker earns also depends on the costs involved. There are two types of expenses–capital costs and working expenses. There are some fixed, one-time costs like the deposit parked with the broker and registration charges. Then there are charges paid on setting up offices, computers, phone lines and so on. Working expenses include rent on the offices, salaries to staff, telephone bills and so on. With Angel Broking you can start you business from anywhere with zero office costs.
- Products offered by the broker: Another factor to consider while choosing a broker is the kind of products he/they offer(s). If the broker offers a wide range of products to suit varying investor needs, the sub broker can attract more clients, and thus boost his earnings. Angel Broking provides a wide range of products to meet different investment needs, including equity, derivatives, commodities, currency, wealth management, personal finance, and so on.
What exactly is commission?
As we have mentioned earlier, sub-broker income comprises of commissions earned on each transaction made on behalf of the client. This will depend on the brokerage, for example, if the brokerage per order is, say, 0.5 percent, on order of Rs 10,000, the total works out to Rs 500. A sub-broker earning will depend on the percentage of this brokerage. Angel Broking pays a commission of anywhere between 50 percent and 70 percent, so the sub-broker’s share could be anywhere from Rs 250 to Rs 350. Hence to earn Rs 50,000 per month, he or she will have to carry out transactions worth Rs 20 lakh.
How much does a sub-broker earn in India?
Angel broking pays out appropriate and satisfactory commissions because sub-brokers handle end-to-end transactions.
To sum up, sub-broker income will depend on several factors like commissions paid, infrastructure provided by the broker, products it offers, etc. Ultimately, it’s skill and perseverance that determines earnings.