Be an Angel Broking Sub-broker and earn maximum returns

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 takes a fee or charge, which is called “brokerage”. In India, investors can buy and sell shares or similar investment products through brokerage houses. These entities charge a minimal brokerage fee. These organisations appoint sub-broking agents, who are paid a commission for each transaction they make. This sub-broker 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) paid 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 factor that affects how much a sub-broker earns:

  • Getting the right broker: Since income will depend on commissions, it’s essential to find the right broker. Not all brokers offer the same commission. Some may pay more, and others less. A brokerage house like Angel Broking, for example, 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 get clients without marketing, technology, and other support, thus affecting profits. 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 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, and that is knowledge. Though the minimum qualification is an HSC certificate, a graduation degree is an added advantage. 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 international events since these also affect share 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 paid to 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 of staff, telephone bills and so on. Most don’t need large offices and armies of staff. However, if you are thinking big, expenses will also be on the higher side; the more significant the infrastructure, the more your chances of making good money.
  • Products offered by the broker: Another factor to consider while choosing a broker is the kind of products it offers. If the broker offers a wide range of products to suit varying investor needs, the sub-broking agent can attract more clients, and thus boost earnings. Angel Broking provides a wide range of products to meet different investments 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 is made up of commissions earned on each transaction made on behalf of a 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’s earnings will depend on the percentage of this brokerage. The commission could range anywhere between 50 percent and 70 percent, so the sub-broker’s share could be anywhere from Rs 250 to Rs 350. So 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?

Generally, large broking houses are generous with commissions because sub-brokers handle end-to-end transactions. In some cases, the commission could go even up to 90 percent!

Conclusion

To sum up, sub-broker income will depend on several factors like commissions paid, the infrastructure provided by the broker, the products it offers etc. Ultimately, it’s skill and perseverance that determines earnings.

Open an account