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How to Become a Sub-Broker and Earn Money

Becoming a sub-broker can be a great way to make money using the power of the stock market. Sub-brokers are responsible for finding and selling securities for their clients. This can be a very lucrative career if you know the securities market and have the right contacts. The process is pretty straightforward and involves getting licensed, learning the ropes, and building your client base. If you put in the hard work, you can make a good living as a sub-broker.

Who is a sub-broker, and why would someone want to become one?

A sub-broker is a financial professional who helps clients gain exposure to the stock and bond markets by providing them with securities they cannot buy themselves. They are also known as secondary market dealers or underwriters. There are many benefits to becoming a sub-broker, including access to better investment opportunities, increased profit margins, and the chance to help people achieve their financial goals.

Sub-brokers typically work for large brokerage firms or banks. They are responsible for acquiring and selling securities on behalf of their clients. To become a sub-broker, you need a degree in finance or business administration and several years of experience in the investment industry. You must also pass the National Institute of Security Markets (NISM) exam.

Steps for becoming a sub-broker:

1. Find a broker to partner with

If you want to become a sub-broker, the first step is to find a broker who will allow you to do so. Some brokers only allow full-time brokers to become sub-brokers, while others will allow any broker who meets certain requirements to become a sub-broker. Finding a broker with your best interest in mind is important, as becoming a sub-broker can be very challenging and time-consuming. The solution is to study well-known business models and tie up with a leading broker firm for optimal assistance. Click here to know more on how to start your own sub-broking business.

2. Eligibility to Become a Sub Broker

Becoming a sub-broker is a straightforward process. You must meet the eligibility requirements, and you must meet the following criteria:

The registrant will no longer be a relief broker with another trading company.

  1. Shareholders and associates of a registered sub-broker may no longer be shareholders or associates.

  2. Should no longer be considered a defaulter in other stock exchange trade.

  3. Must have qualified H.S.C.

  4. 21 years of age or above.

3. Documents Required to Become a Sub Broker

Here are the documents required to become a sub-broker as per NSE:

  1. A broker-dealer license.

  2. Deposit account with a national bank.

  3. An insurance policy that covers the activities of a sub-broker.

  4. Proof of financial standing and experience.

  5. Documentation demonstrating the knowledge, skills, and abilities necessary for successful performance as a sub-broker.

  6. Valid agreement between stock broker and sub-broker.

4. Application Approval Process

After applying, the stockbroker will send your application to NSE for scrutiny and approval. If any changes are required, the document is sent back for re-correction and re-submission.

5. SEBI Registration

After a thorough review of your application, you should have a SEBI registration with a fixed fee. Once SEBI acknowledges your application, you will be provided with a certificate. A unique registration number will be allocated to you, which completes your process and allows you to officially begin as a sub-broker.

6. Learn the basics of the business

Anyone thinking of starting their own brokerage business should take the time to learn the basics. This will give you a better foundation to build your business and succeed.

  1. Learn the ins and outs of the industry. Start by reading articles, watching videos, and attending events to understand what goes into running such a business. This will give you an overview of what you need to start your business and create trust with clients.

  2. Build relationships with other brokers. Connecting with other brokers in the industry is important, as they can provide you with valuable advice and help you grow your business.

7. Set up your business systems and processes

Sub-brokers are a growing and important part of the finance industry. This is because they offer an alternative to full-time brokers, who often have more experience and can charge more. To become a sub-broker, you must set up your business systems and processes. Here are the steps to help you get started:

  1. Choose a business model that works for you. There are two main types of sub-brokerages: commission-based and fee-only.

  2. Create a marketing plan. You’ll need to convince potential clients to hire you as a sub-broker and promote your services effectively.

  3. Learn to market yourself and your services. This means creating a portfolio of your work and spreading the word about your availability. Post relevant information on social media, LinkedIn, and other platforms where potential clients may be interested.

  4. Make sure to keep up with industry trends and stay current on market changes.

How Do Sub Brokers Make Money

Sub brokers make money by getting a commission on the profits they make for their clients. This commission can also include the prices of their services being offered.

Sub-brokers also make money by charging other companies for access to their list of customers. This can be done through a subscription service or by offering special deals to those who sign up.

How much money do sub-brokers earn?

The average sub-broker earns 10% commission on the total revenue earned by brokerage via their generated clients. Larger investment firms can afford to pay their brokers more because of their scale of operation.

Another reason is that sub-brokers are responsible for a wider range of services. This includes helping clients purchase stocks, bonds, and other types of securities, providing advice on portfolio construction, and providing market analysis.

Sub-brokers are in high demand because they can provide personalized wealth-generation services for their clients. Most sub-brokers earn their income through a commission model, which means that the more clients they onboard or retain, the more money they make.


The best way to become successful is to find an experienced sub-broker to mentor and guide you. Additionally, be diligent in your research and always stay up-to-date on the latest industry trends. Finally, keep your head down and work hard because success as a sub-broker demands dedication and perseverance.

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