IDBI Direct Franchise

IDBI Direct Franchise is one of the largest and well-known stock broking banking franchise in India. Be it the offline and geographical presence, brand equity etc, the broker has done a reasonable job in bringing value to the trading community.

Furthermore, the broker offers multiple business partnership models with attractive incentivization.

Let’s try to understand their business model and see whether you should be going ahead with a sub-broker/franchise partnership with them.

IDBI Direct Franchise Review

IDBI Direct is a part of IDBI Group and it entered into the broking business in the year 1993. The broker offers the services of Equity, Currency, Derivatives segments etc. The branches of broker spread over 24 cities in the country. It has taken the membership of NSE, BSE, MCX, MCX-SX.

IDBI Direct is involved in the retail broking business and provides all the necessary tools and guidance to their clients. They also provide guidance to clients when required in terms of research, tips and recommendations.

As mentioned above, the broker provides the following services with the following segments to the business partners as well as their clients:

• Equity
• Derivatives Trading
• Currency Trading
• Mutual funds
• IPO

Here is some quick information about the partnership business offered by IDBI Direct:

IDBI Direct Franchise Business Models

IDBI Direct offers three types of business model for clients.

1. Business Associates or sub-broker
2. Online Remisier
3. Master Franchise

Each of these models come with their own set of eligibility criteria, initial costs, revenue sharing percentage etc. Let’s discuss these at length one by one:

IDBI Direct Sub-broker or Business Associate:

A sub-broker is a very common type of business model offered by almost all broking firm to the clients. For doing business under this model, a client must have a reasonable experience in the financial market. The business partner is supposed to acquire new clients and at the same time, they must also serve the existing client by helping them in their trading-related problems.

This assistance can be in the form of executing trades on behalf of their clients, assisting them with any account related problems, providing them with regular research and tips etc.

A sub-broker is required to set-up an office with all required infrastructure and will have to deposit some security money to the main broker (this amount varies from one broker to another).

The sub-broker can deal with all segments of services available to the main broker. It can be equity to derivatives, currency, commodities, mutual funds, IPO etc.

Thus, in a sense, IDBI Direct sub-broker can target any set of investor or trader looking to put his or her funds into action in one form or the other.

IDBI Direct Online Remisier:

Online Remisier is another model offered by the IDBI Direct to those who want to start the business with them. A Remisier performs all duties of a sub-broker, but they need not set up an office or infrastructure. Their responsibility is just to search for a new client and link them to the main broker.

After that remaining all work (calling, acquiring formalization, servicing etc) is done by IDBI Direct.

If you want to start a business as a Remisier, you are not required to have any specific qualification or any prior experience in this field. You can say this model suit to those who are a fresher/newcomer.

This model can work as a passive revenue stream for people who have a regular job or private business. However, if you can bring a reasonable scale on a consistent basis, then this model may work as a decent monetarily level.

IDBI Direct Master Franchise

As the name suggests, an IDBI Direct Master Franchise is a relatively bigger conglomerate and manages its own business as well as the business of other franchise or sub-brokers around its region.

Master Franchise is an exclusive model and is generally provided to a single partner in a specific geographical location.

This kind of business model suits established businesses in the stock market space who have a sizable client base and experience in the domain. At the same time, it is expected that you have a good enough understanding of different stock market concepts.

The requirements, revenue sharing, client targets, initial deposits, responsibility levels etc are generally kept at a competitive level and suits larger firms.

IDBI Direct Franchise Revenue sharing model

Let’s talk about the meat of the matter and see how IDBI Direct looks at the overall revenue sharing between itself and the partner it works with.

IDBI Direct Sub-broker/Franchise:

The revenue sharing ratio of both a Sub-broker and franchise is kept in the range of 40%-70%.

Like other broking companies, the revenue sharing ratio of IDBI Direct also depends on many factors.

Security deposit made by the business partners to the IDBI Direct plays an important role in deciding this revenue sharing ratio.

Higher the value of the security deposit, more will be revenue sharing ratio and vice-versa.

On the other hand, the revenue sharing ratio of a Remisier and an Introducer is less than sub-broker/franchise.

This is because the responsibility levels of a Remiser and an Introducer role are less than that of sub-broker, they get less revenue share. The revenue sharing ratio of a Remisier and an Introducer is 50:50 which is in line with the industry rate.

 

IDBI direct Franchise Cost

The security money deposited by the business partner to the main broker is kept aside for the purpose of any monetary obligation not meet by the sub-broker/franchise. Every broking firm has some minimum criteria to charge security money.

As far as IDBI Direct security money is concerned, it’s security deposit ranges from ₹50,000 to ₹3 Lakhs for the sub-brokers/franchise. This range depends upon many factors like the experience of sub-broker, existing client base, city of sub-broker, Projected Revenue etc.

For a Remisier the security deposit amount is only ₹5,000. This is a reasonable amount looking at its limited responsibility.

 

IDBI Direct Franchise Pros and Cons

Now, let’s discuss some of the positives and negatives associated with these partnership models with IDBI Direct:

Sub-broker/Franchise:

Pros:

• An opportunity to start a business of your own.
• A good revenue sharing ratio.

Cons:

• The revenue sharing ratio depends on the value of the security deposit.
• You must have experience and existing client base in the financial field.
• Expense on infrastructure set-up.

Remisier/Introducer:

Pros:

• Limited job responsibility.
• No need of prior experience in the financial field.
• No expense on office set-up.
• Low-security deposit.

Cons:

• Limited opportunity for growth.

IDBI Direct Franchise Offers

Following are the offers to the sub-broker/ franchise given by the IDBI Direct.

• Flexible business model: IDBI Direct offers a multi-partnership business model to the clients. They can choose any business model according to their choice or which suits them.
• Low investment: Those who want to start a business with low investment money, IDBI Direct gives an opportunity for them. One can easily start a franchise with low investment with the broker.
• Attractive revenue sharing ratio offered by the broker.
• Reduced margin money offered by the main broker.
• Flexible brokerage rates.

Stockbroker Franchise Registration

If you want to start a partnership business with IDBI Direct, then you will have to follow the following steps.

• Fill the registration form available on the website. Alternatively, you can fill the below-mentioned form as well:

• You will get a call from the sales executive of the company to discuss the model of business partnership you are interested in.
• An appointment will be fixed for face to face discussion.
• All required documents need to submit for verification purpose.
• Verification of documents and background will be checked by the broker.
• After that, your partnership account will be activated.

All this process may take approximately 5-10 working days depending on case to case.

IDBI Direct Franchise Support

Following support are provided by the IDBI Direct partner program.

• They provide training on the trading platform to the partners to get efficiency in their work.
• Marketing related assistance provided to the partners like the advertisement of the franchise, word of mouth publicity, seminars etc.
• A business partner is allowed to access the research report of the broker.
• Advisory support is given to the partners like what and how they should manage their business.
• Business partners are supported by the broker while set-up of infrastructure to start the sub-brokership/franchise.
• Customer support is available to help the business partners to get the answer of any query if arises.

IDBI Direct Franchise Benefits

Following are the advantages of doing a partnership business with the IDBI Direct Franchise.

• IDBI Direct is a well established and accepted brand. It will be easy to acquire clients without giving too much detail to them.
• Almost all modes of trading are available to the company like a mobile app, Web/portal based trading and trade over the phone.
• A wide range of services available. We can say all under one umbrella. Clients can find all types of services they require according to their risk appetites.
• A Special service desk is available to help the business associates.
• Dedicated customer care support to end clients anytime and anywhere.
• The broker offers the latest technology and systems for making trading easy for the traders.
• It follows the transparent business policy method.
• Clients will be benefited by the quality and recognized research.

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IDBI Direct Franchise Summary

IDBI Direct is a well-known broking firm in the country. It provides multi-partnership business opportunities to the clients. With a low initial investment and a famous brand name its easy to acquire clients and run a sub-broker/franchise business smoothly.

In case you are interested in setting up a sub-broker or franchise business in the stockbroking space in India, let us assist you in taking the next steps forward: