Knowledge Centre

  • Knowledge is power
  • Information is liberating
  • Education is the premise of progress, in every society
Sub Broker | November 14, 2022

Sub Broker Franchise without Deposit

As a protocol, a stock broker requires an initial investment deposit from the sub broker to launch a sub broking business, per the sub broker agreement between the two. Every stock broker requests a deposit of some kind from the sub broker they are forming a relationship with.

In this blog, we will attempt to cover the fundamentals of the security deposit, its characteristics, the advantages of starting a sub broker franchise with a security deposit, and ultimately, instances of sub brokers without a deposit.

Initial security deposit

One of the essential items addressed in the sub broker contract is the initial investment or security deposit. Generally speaking, the stock broker clarifies what the security deposit is taken and for which specific business model.

While some stockbrokers mention a variety of security deposits, others only mention the minimum amount.

  1. The typical security deposit ranges from 1,00,000 to 3,00, 000. It can be a bit low or high in this range, but this is a standard range. Any sum between these ranges may be deposited.
  2. With this security deposit, a sub-broker is granted the authority to launch a joint venture under the stock broker's name. Additionally, they are granted permission to access the broker's technology, trading platform, and research reports.

Important pointers about security deposit

The following are some crucial aspects of the security deposit and the associated procedures:

  • The stock brokers take the security deposit as insurance if future payments are not made as agreed.
  • Almost all stock brokers indicate in the agreement that the security deposit is refundable and will be returned to you at the termination or closure of the deal.
  • Cash or stock can be used as the security deposit, whichever is preferred.
  • The security deposit amount partially determines the sub-revenue broker's sharing portion. The percentage of revenue will also be significant if the security deposit is on the higher side.
  • A partner may open a trading or Demat account with the broker for formal transactions by depositing the security money with the stockbroker.
  • In general, it is seen that new brokers offer their partners ZERO investment or sub broker without deposit to grow their business.

Understanding the zero deposit sub broker franchise

The big question is: Can anyone be a sub broker without a deposit?

Some stock brokers offer opportunities to people looking to launch their businesses without requiring an upfront payment or security deposit.

In today's market, there is the fierce rivalry. Stock brokers are using a variety of tactics to entice more business partners for company growth.

Lowering or eliminating the requirements for an initial payment to launch a partnership business is the first step. Some stock brokers reduce the initial deposit required, while others abolish it altogether, and it relies on the stock broker's strategic requirements.

Other aspects, such as the sub-reputation brokers and clientele, are also considered when determining the security deposit. There is a considerable probability that your initial payment may be wiped off, or at the very least substantially reduced, if a partner can commit to a minimum amount of trading per month.

Now it's your turn to consider why certain brokers require a security deposit for sub broker franchise and others do not. If you wish to launch a partnership in the broking industry without posting a security deposit, you should consider your long-term advantage first.

Since it is frequently observed that brokers with weak brand equity and networks attempt to provide you with a free partnership, however, their long-term advantages are relatively few.

Final thoughts

There are numerous choices available to those who want to start a sub broker business and pursue a career in the broking industry.

Due to the intense competition among stock brokers, it is common to see them employ offers like sub broker franchise without deposit or zero initial investment to draw clients and expand their clientele.

Let us help you get started if you want to become a sub broker or any other kind of partner in the stock market sector.

Business Associates

Related Blogs

Frequently Asked Questions


Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
  • 5.Investments in securities market are subject to market risks, read all the related documents carefully before investing.
  • 6.The securities are quoted as an example and not as a recommendation.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investors account.
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDLon thesame day.....issued in the interest of investors.
KYC is a one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. | (As instructed by SEBI, We hereby declare that we do engage in proprietary trading in all segment across the exchange.)
Effective communication & Speedy redressal of the grievances a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: i. Name, PAN, Address, Mobile Number, Email ID c. Benefits: i. Effective communication ii. Speedy redressal of the grievances link:
In case of grievances for any of the services rendered by Findoc Investmart Pvt Ltd write an email to
Mandatory updation of certain attributes of KYC of clients - The advisory is also displayed on the Depository website at following link:
1. NSDL:IN-DP-469-2020 2. Findoc Finvest Pvt. LTD. CIN no:U65910CH1995PTC016409 RBI REGISTRATION NO. B-06.00267 3. Findoc Investmart Private Limited CIN no:U74992CH2010PTC035180 SEBI REGISTRATION NO. INZ000164436 4. Findoc Investmart IFSC PVT. LTD CIN no: U65999GJ2017PTC095984 SEBI REGISTRATION NO. INZ000200735 5. INVESTMENT ADVISOR SEBI Registration no. INA100012297

Member I'd | Nse- 14697 | BSE- 6529 | MCX- 55205 | NCDEX- 01152


Registered Office :

1210/1211/1212/1213,1213A, Exchange Plaza, Near Mercury Hotel, Opp. WTC Tower, Gift City, Gandhi Nagar- 382355, Gujarat, India

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.

Copyright © 2024 FINDOC INVESTMART PVT. LTD. All Rights Reserved.

Developed & Content Powered by Accord Fintech Pvt. Ltd.

Open a Demat Account