Stock Broking Franchisee : A Big Business Opportunity

Stock broking Franchisee also know as Authorized person of Main Broker is a emerging business opportunity in India.   Merely 4% population in India is having Demat Trading Account inplace of 55% in USA and 33% in UK and 13% in that of China.

Large underpenetrated Market for Stock broking franchise  :

At present there are around 3 lakh Authorized  Person  ( Stock Broking Franchise ) working in India against 25 lakh Insurance Agents who serve for insurance needs of people.  This also shows big gap in necessity of stock broking franchisee and actual number of working Franchisee.

Some more data point will suggest you the scope of Stock broking business in India,   Pl. go through the below inverted pyramid picture and data :

So you can see that we have merely 10 crore dematholder ag. 35 crore Insurance policy holder, 42 crore Pancard holder and 82 crore adult population.These suggest that India have go multi-fold from present in Stock market investment and Trading field.

Stock Broking Franchisee,  Asset light Business Model :

As you gone through Stock broking Franchisee business has big untapped market opportunity on the other hand it is a franchise business model with lowest investment and is asset light model.

With negligible deposit to main broker and with an internet enable Laptop / computer and set  of chair-table one may start and run this business with unlimited growth potential.   Recurring expenses are also very low.  Initially even one may start from home without office expenses.   Further for growing the business exponentially one may employ and increase team gradually as revenues starts moving higher.

Training support by Main Broker :

Main Brokers who have complete focus on Franchisee model give structured and proper training to all the new Franchisee ( Authorized Person ) joins them.   They make them aware about the business, theoretical part, how to operate, dos and donts and train the franchisee from A to Z,  to make the franchisee capable of doing business and generating good and regular revenues.

Benefit of Brand Recognition :

Franchisee benefits from the established brand recognition and reputation of the parent brokerage firm, thereby enhancing their ability to attract client.

Marketing & Branding support :

Good Main brokers provide support to franchisee for internal branding and branding outside the franchisee office.  Further they  give training and guidance to them for how to do marketing through different modes using company collaterals.

Research and Advisory Support :

Clients come to a Stock broker for getting Research and Advisory support. For this main broker provide full access to Franchisee and its clients with regards to the research ideas generated  by them :   long term investment ideas, positional investment calls as well as intraday and derivative trading strategies which makes the franchisee enable to retain the client.

Investor Awareness Program for Franchisee Clients :

Franchisee centred main brokers arrange for Investor awareness programs for Franchise clients as well on regular basis.  This helps franchise to invite his/her prospective and existing clients and generate interest of such prospect for investment and trading and gives platform to franchisee to convert big number  of new clients on regular basis

Technology & Research Tools :

Franchise in stock broking also gets the benefit of cutting edge technology of main broker i.e. Trading platform,  Mobile Trading App, Backoffice software, Research tools,  CRM software for lead and client servicing management  which help the Franchisee in generating and increasing business without any investment, time and efforts for it.

How much one can Earn :

How much one can earn from Stock broking Franchisee  depends on client base one introduce and how much support and guidance one give to its clients.  Normally income Ranges from 25k to as high as Rs.25 lakhs for big franchisees.  However an average franchisee earns from Rs. 1 lakh to Rs.3 lakh.

Qualification for Authorized Person :

A person  citizen of India with age of 18 years above and passed intermediate ( 10^th class) and must not have convicted for fraud or dishonesty may become Authorized person.  So qualification for AP is not very high,  but preferably you must have reasonable knowledge about financial market so that you can understand the financial products and guide your clients.

Revenue from other Financial  Products ;

Stock broking franchisee also have advantage of catering other financial products to their clients through their main brokers viz. Mutual funds, bonds, corporate fixed deposits, Insurance and  others which give them additional Revenue  stream which could be parallel as big revenue as from stock broking.

Conclusion :

Franchisee in Stock broking is one of the asset light low cost business model which have potential to earn high income on regular basis.  It has minimum investment and help franchisee to leverage the parent company brand,  technology, research,  training and support for building a long life career and revenue stream for its franchise.  Looking to Indian demographics and under penetration the scope in the sector is immense.

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