What Is Sub Broker?

Are you curious to know what is sub broker? You have come to the right place as I am going to tell you everything about sub broker in a very simple explanation. Without further discussion let’s begin to know what is sub broker?

In the expansive realm of financial markets, a sub-broker plays a pivotal role, acting as a link between investors and the stock market. This article aims to elucidate the intricacies of what a sub-broker is, exploring their functions, income sources, and the diverse aspects of their involvement in the stock market and mutual funds.

What Is Sub Broker?

A sub-broker in the stock market is an individual or entity authorized by a registered stockbroker to conduct trading activities on behalf of clients. This arrangement allows investors to access the stock market through the services provided by sub-brokers, who act as intermediaries facilitating transactions.

What Is Sub-Broker Example?

An example of a sub-broker could be an individual or a firm affiliated with a registered brokerage house. They operate under the regulatory framework established by regulatory bodies like SEBI (Securities and Exchange Board of India), executing trades and providing financial services to clients.

What Is Sub-Broker In Mutual Fund?

In the realm of mutual funds, a sub-broker extends their role beyond stock trading. They facilitate investments in mutual funds, guiding clients through the selection and management of mutual fund portfolios.

Sub-Broker Commission:

Sub-brokers earn commissions for their services, typically based on the volume of trades or the value of assets under management. The commission structure may vary, and it is crucial for investors to be aware of the terms agreed upon with their sub-broker.

Types Of Sub-Broker:

Sub-brokers come in various types, including:

  • Individual Sub-Brokers: Independent individuals affiliated with brokerage firms.
  • Corporate Sub-Brokers: Entities or firms authorized to act as sub-brokers.

Sub-Broker Income:

The income of a sub-broker is derived from commissions earned on transactions and, in the case of mutual funds, fees for advisory services. Additionally, they may receive incentives and bonuses based on performance.

Sub-Broking Business In India:

In India, the sub-broking business operates within the regulatory framework established by SEBI. Individuals or entities aspiring to become sub-brokers must adhere to regulatory guidelines, ensuring transparency and investor protection.

Sub-Broker Franchise:

Many sub-brokers operate under the franchise model, affiliating with established brokerage firms. The franchise model allows sub-brokers to leverage the brand and infrastructure of the parent brokerage, enhancing their credibility and reach.


In conclusion, a sub-broker serves as a vital intermediary, connecting investors with the dynamic world of financial markets. Their role extends beyond stock trading to encompass mutual fund investments. Understanding the functions, commission structures, and types of sub-brokers empowers investors to make informed choices when engaging with these financial intermediaries. As the financial landscape evolves, the role of sub-brokers remains integral, providing individuals and businesses with the expertise and access needed to navigate and thrive in the complex world of investing.


What Is The Role Of A Sub Broker?

Sub-brokers are intermediaries in the financial markets who operate under the authorization and supervision of a registered stockbroker or brokerage firm. They assist clients in buying, selling, and trading various financial instruments such as stocks, bonds, commodities, or derivatives.

What Is The Difference Between A Broker And A Sub Broker?

A stockbroker functions independently, while a sub-broker acts as an intermediary between the main stockbroker and its clients. A sub-broker is primarily entrusted with the responsibility of expanding the business network of the original stockbroker.

How Do Sub Brokers Make Money?

As a sub-broker, you earn a commission from the brokerage generated by your clients’ transactions. The brokerage is shared between you and the broker according to the agreed ratio. For example, if your brokerage sharing ratio is 70:30, you get 70% of the brokerage, and the broker gets 30%.

Who Is Eligible For Sub Broker?

Educational Background: Completion of secondary studies (10+2) in compliance with SEBI’s regulations is a prerequisite. Higher educational qualifications can enhance the prospects of success in the sub-broking business. Financial Market Knowledge: A sound grasp of the financial markets is crucial.

I Have Covered All The Following Queries And Topics In The Above Article

What Is Sub Broker In Stock Market

What Is Sub Broker Example

What Is Sub Broker In Mutual Fund

Sub Broker Commission

Types Of Sub Broker

Sub Broker Income

Sub Broking Business In India

Sub Broker Franchise

What Is Sub Broker