Stock Broker and Sub Broker

Difference Between Stock Broker and Sub Broker

Too many investors in the stock market made it chaotic some time back, then came a time when this industry was full of opportunities. Stock exchange, stock broker, sub brokers, then full-service brokers, online brokers and the list is on and on. If we talk about broker and sub broker then it can be explained as if a broker needs to contact a customer there should be a point of contact, and that point of contact is sub broker.

All the market activities in time continuum, moving from left to right, making buy sell decisions that too in microseconds, minutes, hours, days, weeks, months, years and decades. To take care of the investors in such a volatile market brokers and sub brokers have emerged as major players.


A stock broker is an individual or firm that is authorized to buy and sell stocks on behalf of trader or investor. A broker should be registered with Securities Exchange Board of India (SEBI) and stock exchange. The broker charges a fee that is called brokerage fee.

A broker should have a sound knowledge of knowledge of finance and should be able to help the investors make informed decisions.

Best stock broker in India enables the clients to purchase stocks and other securities from the stock exchange.

Who is a SUB BROKER?

SUB BROKER franchise carries out same functions as a broker, it acts as a middleman between broker and the client. The franchisee is responsible for client management, a stock broker has its presence across the country through the sub brokers. All these sub brokers help to bring clients to the stock brokers. Thus, a sub broker brings business for the stock brokers.  The sub-broker is not any trading member of the Stock Exchange but assists the investors in trading with the help of the best Sub broking franchise in India.


Many of us who do not trade or invest regularly and can get confused with what is the difference between these two terms, let us have a look of what these two terms actually means.

  1. Brokers are the listed members of stock exchange while sub brokers are not. Sub brokers require a certificate of registration from SEBI in order to conduct their business.
  2. The brokers are a brokerage fee while the sub brokers get a commission.
  3. A broker directly trades in the stock market, a sub broker franchisee does the trade through the broker, the franchisee passes the clients order to buy or sell to the broker who executes it.
  4. For becoming a broker, a high investment is required whereas for a sub broker a low investment is required.
  5. The broker provides trading services to the clients, the sub broker introduces new clients to the stock broker.

What does Sub Broker Do?

The sub brokers Franchise helps in

  • Account opening
  • Trading terminals
  • Call and trade services
  • Resolving the issue
  • Online sub broking models
  • Also acts as online stock market educator- teach students how to trade and encourage them to open an account with partnered broker.


  1. Sub brokers will get higher revenue share for getting clients and for the research
  2. They get the access to broker’s marketing and trading tools.
  3. Comparative little investment than broker to initiate the business.
  4. Necessary to choose the right broker that gives the fair commission.
  5. Working with big brands broker also open the doors for advisory.

CONCLUSION – Stock Broker and Sub Broker

Both brokers and sub brokers provide unique services. As an investor it is important to know the difference between the two for best decision making.

As already mentioned above the broker gets a brokerage fee whereas, a sub broker earns on percentage basis. A sub broker introduces the client to the broker, the client starts trading and giving brokerage to the broker and then brokerage is split into sub broker and broker on percentage basis. A sub broker also earns money for trading for himself and there is no restriction for that.

A broker is a larger workspace and business and sub broker is a part of that business that helps the broker top reach the audience on a larger scale.

Leave a Reply

× How can I help you?