Choice Broking Sub Broker

Choice broking Sub Broker business is one of the new entrants in the broking business.

They have a wide range of services available for the customers. It has captured among the top positions in the SME (Small and Medium Enterprises) segment. Its service portfolio includes portfolio management, wealth management, investment advisor, raising funds etc.

In this detailed Choice Broking Sub Broker review, let’s have a detailed look at the different business models offered by the broker, the corresponding deposits and revenue sharing mechanisms.

Choice broking Sub Broker Review

Choice broking is famous in the broking market for its transparent franchise business. The company makes everything very clear to the partner before entering into the agreement. The broker supports its sub-broker or small entrepreneurs to do their business confidently and without any hurdle.

The choice broking Sub Broker is a registered member of BSE, NSE, MCX, NCDEX, and MCX-SX.

Also, it is a registered Mutual fund distributor. The broker is known for its multiple account opening. The Head office of the broking house is in Mumbai.

The Choice broking gives service to the sub-brokers and clients in the following markets.

• Equity
• Derivative Trading
• Commodities
• Mutual funds
• IPO

Here are some quick stats for your reference:

 

In this article, we are going to discuss all important aspect of its sub-broker business like types of business model, revenue sharing of each model, Initial deposit amount, sub-broker offering, eligibility criteria etc.

Choice broking Sub Broker Business Models

There are two types of business model through which one can start a business with Choice broking. Just like its name, it gives business partners choices to start the business as they want.

• Sub-broker: Acquire your own client and do business on their behalf.
• Remisier: Act as a referee or can say refer clients to the broker and earn.

Choice Broking Sub-broker or Authorized person:

Between the two models offered by the Choice broking, a sub-broker model is the most demanded model. Mostly a potential businessman prefers to tie up with the broker through the sub-broker model. Under this model, a sub-broker will have to set up an office and build their own client base. For this purpose, they are required to deposit some initial security money.

The broker shares very attractive revenue sharing ratio to the Sub-broker. The revenue sharing ratio is 50%-80%. And it may go up to 90% also (depends on your client network and of course negotiation skills you put in place).

Benefits:

Here are some of the benefits you may have if you choose this business model:

• A very attractive revenue sharing ratio under the sub-broker model.
• An opportunity to start your own business.

Concerns:

At the same time, here are a few issues:

• Under this model, you will have to set up infrastructure to run the business.
• Security money deposit required to the main broker.

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Choice Broking Remisier:

The second business model offered by the company is ‘remisier’. Actually a remisier act as a referee who refers clients to the broker.  Mostly, those people who have a large contact circle and want to earn extra income opt this model. They don’t need to set up an office to bring clients. They can directly bring clients to the office of the broker and rest the company will do.

Depending on the revenue generated by the referred clients, a remisier earns a commission. It may range from 15%-30%.

Benefits:

Quick information on the different benefits you get through this model:

• No need to set up an office.
• One can do it to earn extra income.

Concerns:

Again, the other side of the coin talks about the potential problems with this set-up:

• This suits those only, who want to earn extra money, not as a main source of income.

Choice broking Sub Broker Revenue sharing

Let’s talk money!

What is the percentage revenue sharing you can expect using either of these business models? Here are the details:

Choice Broking Sub- broker/ Authorized person:

Choice broking shares a competitive revenue sharing ratio. The sub-broker gets the revenue share in the range of 50%-80%.

The revenue sharing ratio can be negotiated also. If a sub-broker deposits a high amount of security money, then he/she can negotiate to increase the revenue sharing ratio. It can also be negotiated on the basis of revenue generated by the sub-broker.

The main broker can increase the revenue sharing ratio up to 85% to 90%.

Choice Broking Remisier:

The revenue sharing ratio of a remisier is in the range of 15%-30%. This is low because a remisier plays a limited role for the broker. Its role is just an introduction between the two parties and the rest is done by the two parties itself.

The highest revenue sharing ratio is 30% in the case of a remisier.

The revenue sharing ratio of a remisier depends on the factors like activities of your referee in trading, revenue generated by the referee and the number of referee starts a business with the broker.

Choice broking franchise Security Deposit

Just like other broking firms if you want to start a business with the Choice broking, then also you need to deposit a security amount with the broking house.

Whether it is a partnership through a sub-broker or a remisier, Initial deposit money is required.

Choice Broking Sub-broker Security Deposit:

A sub-broker of Choice broking is required to deposit an initial amount ranging from ₹50,000 to ₹2 Lacks. It varies from one sub-broker to another, depending on the risk factor associated with the client base of a sub-broker

The deposit amount is used by the broker in case of any default/non-payment by the sub-broker. The deposit amount is refundable. It is refunded at the end of the agreement between the two parties. A Sub-broker will have to make infrastructure investment.

Choice Broking Remisier Security Deposit:

In case of a remisier, Security deposit ranges from ₹15,000 to ₹25,000. A remisier is not required to invest in infrastructure.

 

Choice broking Sub Broker Registration

If you want to become a sub-broker of the Choice broking, will have to follow the following steps:

• Fill the registration fee available on the Choice broking website. You may also choose to fill in your details in the form below:

• The choice broking representative will call you to set up a meeting.
• Discuss the proposal with the team of Choice broking, get everything clear from the broker’s side. Try to understand every term and condition and negotiate if required.
• Submit all the required documents to the broker for verification purpose. DD/Cheque should also be submitted for the initial deposit.
• The Choice broking will move to the next step. They will verify the document and go ahead for the final procedure.
• At last, Choice broking will generate your business code and registration will be completed at the stock exchange.

It will take 6-10 days to complete the whole procedure.

Choice broking Sub-broker Offers

Following are offers given the Choice broking to the sub-broker:

• The flexibility of revenue sharing ratio: Sub-broker gets the revenue sharing ratio according to some condition like revenue generation, initial amount deposit etc.
• A dedicated relationship manaer (RM) will be linked to your account in order to assist you with any of your specific concerns.
• They waive the registration fee for the sub-broker.
• Increased margin money offered to sub-broker.
• Sub-brokers are allowed to invest less in infrastructure.
• Free advisory calls will be provided.

Choice broking Sub Broker Support

Here is how this full-service stockbroker provides you with business support at different levels:

• No restriction for any minimum office space.
• They provide marketing support.
• Training for getting everything related to the business with the broker.
• Management consulting services are provided by the company.
• Business development support is provided.

Choice broking Sub Broker Benefits

Following are the advantages of choosing Choice broking as a business partner:

• The broker provides support to the business partners to do business easily in a competitive environment with the idea of business development.
• Quick and easy onboarding process as long as the details and documentation provided by you is valid.
• The company gives marketing support like advertisements on TV, banners, Pamphlets etc.
• And the most important thing which is different from other broking companies is that it does not require any minimum office space to start the business.
• Low deposit required to set-up your business and that too is refundable in nature.
• Full training is provided to the business partners to get the way of doing business or get on-boarded.
• They also provide management consulting service.

Choice broking Sub Broker Summary

Choice broking is a good option for those who want to get choices for the partnership business with a broking company. It shares a favourable revenue sharing ratio with the sub-broker. Choice broking helps you at your every step to start a business of your own without any hurdle.

In case you are looking to set-up a franchise or any other business model in the stockbroking space, let us assist you in taking the next steps forward: