How To Become A Sub Broker? Learn In 5 Steps

How to become a sub broker?

The stock market in India is seeing a rapid rise in its admiration among the common people and the latest data suggests that millions of Demat accounts were opened by retail individuals in the first half of the passing year 2022. The innumerable opportunities for investors to make a profit are flourishing hence, this interest when combined with the arrival of multiple startups in every niche has advanced the significant need for brokers and sub-brokers for convenient trading in the stock market. With the abundance of opportunities to explore, becoming a sub-broker is not laborious.

How to be a sub broker?

Who is a sub-broker?

How to become a sub-broker?

A sub-broker is a person who empowers and enables all those individuals who want to make investments in the stock market and other investment directions like derivatives, mutual funds, and derivatives to choose the right shares and build better portfolios.

Who Can Become A Sub Broker?

How to become a sub-broker?

If you are an aspiring Wealth Manager and wealth creation inspires you then this work profile will surely keep you passionate about your work.  If you’re a Financial Influencer then you should definitely join a group of people who have an understanding of the market as you can guide the investors and potential investors to make a possible course of action in the financial market. If you are a Social Media Influencer on various social networking platforms you can also become a sub-broker as you have a set of dedicated followers on your channels and pages who could become investors or are ready to be investors.

What does a sub-broker do?

How to become a sub-broker?

A sub-broker’s primary role is to enroll and engage clients under them and modulate their business according to the demand of the clients. Sub-brokers are not trading members so you cannot charge a brokerage rather you will be given a commission amount out of the total transaction value done by your clients. However, there is no limit on the commission amount a sub-broker can earn.

How and Where To Become A Sub Broker?


There are a few simple steps on how to become a sub-broker and the steps involved are mentioned below:

  1. The first step in this process is to choose a stock broking firm that you want to become a part of. This step is supreme as it will have a direct impression on your day-to-day activities, incentives, and many other aspects. You also need to explore the aspects of network, experience, digital presence, and product offering of the brokerage firm apart from certainty of growth and higher incentives.
  2. The second step would be getting to know the eligibility criteria which is quite fundamental. Submit all the relevant documents duly filled as asked by the stock broking firm you are going to partner with along with a processing fee of 2000 rupees plus GST.
  3. Your filled application is then forwarded electronically to the National Stock Exchange (NSE) by the stock broking firm for acceptance and authorization. The stock broking firm also makes the payment of your processing fees on your behalf. In case NSE finds any kind of disputes or discrepancies in your application the exchange will return your document for correction and ask to resubmit.
  4. You will require registration with SEBI with a fixed fee through your stock broking firm itself once your submitted application is successfully reviewed by the exchange.
  5. SEBI will acknowledge your application and fee payment and it will now send you a sub-broker registration certificate along with a unique registration number.

You will now become an officially considered sub-broker.

Documents Required To Become A Sub-Broker

How to become a sub broker?

As elaborated by the NSE, a set of specific documents has to be sent by you as scanned physical copies which have to be attached to the sub-broker registration application form as per the format mentioned. The documents include:

  • Address proof of the applicant entity:

The address mentioned in the proof document should match the address that is mentioned on the application you have filed. The document which is accepted includes the latest telephone                bill, electricity bill, valid ration card, valid passport, valid driving license, and bank statement for the last month.

  • Experience Certificate Proof:

If an individual/partner/director has a qualification less than HSC then this document is mandatory. For the document to be acceptable a two-year experience certificate proof is needed to               be shown in the capacity of the employee/dealer in the capital market proposed in the name of an individual/partner/director.

  • An Agreement between the broker and the sub-broker is generated to carry on with all necessary trading processes without any hindrance.


Eligibility Criteria To Become A Sub Broker:

How to become a sub broker?

Here are all criteria you need to fulfill to become a sub-broker

  • You need to have a minimum qualification of 10+2 (OR) HSC. Some brokers might also prefer you to have at least a graduation degree
  • You need to be a  minimum of 21 years of age or above it.
  • You cannot be a trading member of an alternate firm.
  • You can no longer be a registered sub-broker with another trading member
  • You must no longer be a share0 holder or an associate of a registered sub-broker
  • You must no longer be a defaulter at another stock trade

After fulfilling all the above-mentioned clauses you have now become an official sub-broker in India and you are ready to go ahead and choose a profession that can give you good earnings through commissions.

How To Become A Sub Broker with SMIFS Limited?

SMIFS Limited offers one of the best stock broker franchise models available in the stock broking scene in India. It has a strong brand name, a built-in tab-based advisory platform, and the best research report. These are some of the unique features that you can experience by partnering with SMIFS Limited and enjoying unlimited hazards. For reference purposes, you can also view our video on the official YouTube channel of SMIFS Limited.



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