Sub-Broker vs. Broker Partner Program

What is a Sub-Broker Program?

A Sub-Broker (also called an Authorised Person or AP) is a person or business firm that acts as an intermediary between a stockbroker and customers. They execute trades on behalf of clients, provide trading guidance, and offer investment advice.

How Does It Work?

• A sub-broker associates with a registered stockbroker like 5paisa and has to be registered with SEBI and the stock exchange.
• They assist clients in opening accounts, making trades, and handling investments.
• They receive a portion of the brokerage income made by their customers' trading transactions.
• They are provided with a trading terminal and can execute trades on behalf of customers.
• They work under the compliance regime as defined by SEBI and stock exchanges.
   

Who Can Become a Sub-Broker?

• Financial advisors who wish to extend their services.
• Investment consultants who desire to manage a portfolio of customers.
• Stock market professionals who desire to offer active trading support.
• People who are ready to obey the laws of SEBI and invest in business infrastructure.
   

What is a 5paisa Partner Program?

A 5paisa Partner Program is a referral program where individuals are given commissions for bringing new customers. 5paisa partners are different from sub-brokers or authorised persons as they do not perform trades or give investment advice. They are only engaged in finding clients, and thus, it is an easy means of earning passive income.

How Does It Work?

• Broker partners join a broker like 5paisa with a partnership program like 5paisa Partner program.
• They are given a special referral link or code to distribute to prospective clients.
• When a referred client opens an account and begins trading, the partner earns a commission on the brokerage fees.
• No regulatory registration, compliance, or business infrastructure is required.

Who Can Become a Broker Partner?

• Finance bloggers and influencers with a following that is interested in trading.
• Social media promoters who are capable of promoting brokerage services online.
• Investors and traders with extensive networking.
• Lead generating digital marketers.
   

Major Differences Between a Sub-Broker and a Broker Partner Program

Which One Should You Choose?

Select the Sub-Broker Program If:

• You possess experience in stock trading, investment consulting, or financial advisory.
• You wish to engage actively with clients and help them trade.
• You are willing to invest in infrastructure and office space.
• You can meet SEBI regulations and the requirements of a stock exchange.

Select the Broker Partner Program If:

• You have a strong following as a digital marketer, blogger, or influencer.
• You wish to gain passive income without dealing with client accounts.
• You do not want to invest in a physical establishment or comply with regulatory needs.
• You desire a flexible, anywhere-from-work model.
   

Conclusion

Both 5paisa Partner Program and Sub-Broker Program are great options to benefit from the stock market without immediate trading. Still, they serve different people as per their capability, experience, and business targets.

Being an authorised person suits those people who desire a lively role in trading and management of clients. It demands registration under SEBI, investment in infrastructure, and adherence to regulations.

The 5paisa Partner Program is perfect for someone seeking a referral-based income model. It is a zero-investment, no-complexity-of-law arrangement with flexible work options.

As an investment professional, the sub-broker route might be ideal. But as a content creator, influencer, or digital marketer, the broker partner model may provide a risk-free and scalable income stream.

Selecting the right model will be determined by your experience, resources, and revenues.