How share broking franchise in India is cost-effective?

The price of a stock broker franchise varies depending on the company. Regarding this, they each have a distinct percentage. We discovered that although a broker is an independent trader, stock brokers work directly for the broker, are subject to their rules, and are paid a set fee in exchange for their services. Stock Brokers are paid a charge known as a stock brokers commission based on the number of clients and transactions they complete.


A broker is someone or a company that is permitted to purchase and sell stocks on behalf of a trader or investor. A broker is a person who has registered with both the stock exchange and SEBI (Securities Exchange Board of India). A sum of money known as brokerage fees is exchanged for the broker’s services with the client. Clients should work with a broker to fully comprehend the stock market. A broker can do research and develop technological tools to support client decisions and assist them in trading wisely.

Sub Broker

A sub broker is a broker’s business partner. The stock brokers responsibility is to offer the client the services that the broker offers. The stock broker must have one-on-one interactions with the client. And in exchange for this, the stock broker gets a commission-based portion of the earnings.

Cost of a stock Broker Franchise

The profit or earnings that a stock broker receives in exchange for their services are referred to as the trading franchise cost. You may learn more about the various franchise fees for stock brokers below.

Criteria for stock Broker Commissions

  • Stock broker/Authorized Individual

Advisory Commission 50%-30%

Affiliate Commission 50%-70%

  • General Franchise

Advisory Commission 80%-70%

Affiliate Commission 20%-30%

Stock broker commission

A stock broker assists the brokers in the trading of securities in exchange for payment of a certain percentage of the profits from companies like BSE or NSE. They will profit more the more substantial the deal. A stock broker acts as a liaison between a broker and a client even though brokers are stock exchange members and operate independently. Therefore, if one hires a stock broker, their profitability will depend on the broker’s pricing strategy.

Percentage-based strategy for the brokerage is another option. Consider a scenario where a client buys 100 shares of a corporation for 10p each. The cost of the transaction would be 10,000. Therefore, the stock broker might impose a fee of 0.5%, or $50. The more transactions they complete, the more commission they will receive. Regardless of the percentage-based costs, the stock broker may levy a cap on fees. 

Stock brokers may also impose a predetermined fee in exchange for a percentage of profits. The stock brokers income in each of these cases is expressed as a percentage of total brokerage fees. This proportion can easily approach 60% and varies from broker to broker.

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A Conclusion

A sort of intermediary between the broker and the client is the stock broker. For both the buyer and the seller, they make trade easier. An upper secondary board exam and accreditation from the National Institute of Securities Market are prerequisites for becoming a stock broker in India. Additionally, it would be SEBI-registered (Securities Exchange Board of India).

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