A sub broker (Authorised Person) business in India costs anywhere from zero to ₹5 lakh+ to start, depending on the model you choose; requires you to be appointed by a SEBI-registered stockbroker (you can’t register with SEBI directly); needs a relevant NISM certification; and earns income through a revenue-sharing model rather than a fixed salary.
Below are the 20 questions people ask most often, grouped by theme, with straight, no-fluff answers.
Category 1: Basics & Getting Started
What does a sub-broker actually do in India?
A sub-broker — officially an Authorised Person (AP) — partners with a SEBI-registered stockbroker to bring in and service clients for trading in equities, derivatives, commodities, or currencies, earning a share of the brokerage generated by those clients’ trades.
Is “sub-broker” still a valid, official term after SEBI’s 2018 changes?
Not officially. SEBI discontinued the standalone sub-broker registration category in 2018, and everyone performing this role today is legally called an Authorised Person.
“Sub-broker” remains widely used as an informal, commonly searched term, but your actual registration is as an AP.
Can anyone start a sub-broker business, or do you need trading experience?
No prior trading experience is legally required. What matters is meeting the basic eligibility criteria (age, education), clearing the relevant NISM certification, and—practically speaking—having a network of potential investing/trading clients to get started.
Is the sub-broker business genuinely profitable in 2026?
It can be, but profitability depends entirely on your client base’s trading activity and your negotiated revenue-share percentage—not on registration alone.
Sub-brokers with an active, high-turnover client base can earn substantially, while those with mostly inactive, registered-but-not-trading clients often struggle to see meaningful income.
Category 2: Investment & Cost
How much does it cost to start a sub-broker business?
Typically ₹50,000 to ₹5,00,000+, depending heavily on the business model — a basic Authorized Person appointment costs far less than a franchise or master franchise setup that includes office space and a larger security deposit.
Do all brokers charge the same investment or security deposit?
No. Security deposits and investment requirements vary significantly by broker and by business model (referral, standard AP, or franchise). It’s worth comparing multiple brokers rather than assuming the first one you approach offers standard terms.
Can I start a sub-broker business with zero investment?
Some brokers offer a referral or basic AP model with little to no upfront investment, particularly for individuals working from home without office infrastructure. However, revenue share in these low-investment models tends to be lower than franchise-level partnerships.
What ongoing costs does a sub-broker have besides the initial investment?
Common ongoing costs include NISM certification renewal (roughly every 3 years), any technology/platform charges not absorbed by the broker, and — if operating a franchise — office and staffing overheads.
Category 3: License, Registration & Eligibility
What are the eligibility criteria to become a sub-broker/Authorized Person?
You need to be at least 18 years old, have a minimum education of 10th pass (10+2 or graduation is generally preferred), hold a clean legal and financial record, and be appointed by a SEBI-registered stockbroker. Individuals, partnership firms, LLPs, and body corporates are all eligible entity types.
Is NISM certification compulsory for sub-brokers?
Yes, in most cases. A relevant, valid NISM certification for the segment you’ll operate in (cash, F&O, currency, or commodity) is generally required before or shortly after onboarding, and needs periodic renewal. See our full SEBI registration requirements guide for the complete process.
How long does sub-broker/Authorized Person registration take?
Typically 2–4 weeks from document submission and agreement signing to final activation, though this varies by broker and the exchange’s processing timelines.
Can a company or partnership firm register as a sub-broker, or only individuals?
Both. SEBI’s Authorised Person framework allows individuals, partnership firms, LLPs, and body corporates to register — not just individuals — which is why you’ll see both solo APs and franchise-style entities operating under this model.
Category 4: Income & Commission
How much can a sub broker earn per month?
There’s no fixed figure — income depends entirely on client trading volume and your negotiated revenue-share percentage.
Our detailed sub-broker income guide walks through real calculation examples, but earnings can range from a few thousand rupees to well over a lakh per month depending on your client base.
What is revenue-sharing in the sub-broker business?
It’s the core commercial model behind sub-broker income: your broker keeps a portion of the brokerage generated by your clients’ trades and pays you the rest as commission — typically ranging from 20% to 80% depending on your partnership model and negotiated terms.
Does a sub-broker earn only from brokerage, or are there other income sources?
Brokerage revenue share is the core income, but many sub-brokers also earn from Depository Participant (DP) charges, referral/override commissions for onboarding other APs, and cross-selling additional products like mutual funds or insurance to the same client base.
How often are sub-broker commissions paid out?
Most brokers settle commissions monthly, usually within the first 7–15 days of the following month. Some new-age, subscription-based platforms offer weekly or even daily payouts as a partner incentive.
Category 5: Risks & Compliance
What are the main risks of running a sub-broker business?
The biggest risk is income volatility — since earnings are trade-volume linked, they fluctuate with market activity and client behaviour.
Other risks include client attrition, choosing a broker with an unfavourable revenue-share slab, and compliance risk if you operate outside the boundaries of what an AP is legally permitted to do.
What happens if a sub-broker violates SEBI or exchange rules?
Violations — such as handling client funds directly or conducting activities reserved for the broker’s own employees — can lead to disciplinary action, including suspension or cancellation of the AP registration.
Since the appointing broker is responsible for the AP’s conduct, violations can also significantly damage that broker relationship.
Can a sub-broker lose their registration?
Yes. Registration can be withdrawn by the exchange at the request of the broker or the AP, or if the exchange determines that continuing the appointment isn’t in the interest of investors or the market — which is why staying within compliance boundaries matters as much as growing your client base.
Is sub-broker income guaranteed, or does it fluctuate?
It fluctuates. Sub-broker income is not a fixed salary — it moves with market volumes and client trading activity.
Many sub-brokers reduce this volatility over time by cross-selling recurring-income products like mutual funds alongside their core brokerage business.
Final Takeaway
Most sub-broker questions boil down to the same three themes: how much it costs, how you get registered, and how income actually works — and the honest answer to all three is “it depends on the choices you make.”
Compare brokers on revenue share, not just brand name. Take the eligibility and NISM requirements seriously rather than treating them as a formality.
And go in understanding that this is a variable-income business, not a salaried job — one where an active, well-serviced client base matters far more than the number of clients you’ve simply registered.