A sub broker in India — officially an Authorized Person (AP) — doesn’t earn a fixed salary. Income comes from a revenue-sharing model: the broker you’re partnered with keeps a portion of the brokerage generated by your clients’ trades and pays you the rest.
Depending on the type of partnership (referral, standard AP, or franchise/master franchise), that share typically ranges from 20% to 80% of net brokerage.
So a sub-broker earning ₹10,000 a month and one earning ₹2 lakh a month could both be doing everything “right” — the difference is client base, trading activity, and the revenue-share slab they negotiated. Let’s unpack exactly how this works, with real calculations.
Why Sub-Broker Income Isn’t a Fixed Number
Unlike a salaried job, a sub-broker business doesn’t come with a pay slip. Your monthly income depends on three moving parts working together:
1. How many active clients you’ve onboarded under your AP code
2. How often and how much those clients trade (your “trading volume”)
3. What revenue-share percentage you’ve negotiated with your broker
Change any one of these, and your income changes — which is exactly why two sub-brokers with the same broker can have wildly different monthly earnings.
How the Revenue-Sharing Model Actually Works
Here’s the mechanism in plain language, step by step:
1. Your client places a trade through your broker.
2. The broker charges brokerage and other exchange-related charges on that trade.
3. A portion of that brokerage is deducted toward statutory and exchange-related costs (transaction charges, SEBI turnover fees, GST, stamp duty, etc.) — this leftover amount is called the net brokerage pool.
4. You receive your pre-agreed percentage of that net brokerage pool as your commission — this is your revenue share.
5. The broker retains the remaining share to cover its own operating costs, technology, and compliance.
This is why the industry calls it a revenue-sharing model rather than a “commission job” — you and your broker are literally splitting the brokerage pool generated by your own client base.
Illustrative Commission Calculation (Worked Example)
Numbers make this much easier to understand than percentages alone. Here’s a simplified, illustrative example — treat this as a teaching model, not a quote from any specific broker’s actual rate card.
Assume: Your clients collectively generate ₹2,00,000 in gross brokerage for your broker in a month.
| Step | Amount (₹) |
| Gross brokerage generated by your clients (monthly) | 2,00,000 |
| Less: Statutory & exchange-related deductions (approx. 18-20%) | 36,000 – 40,000 |
| Net brokerage pool (your commission base) | ≈1,60,000 – 1,64,000 |
Now here’s how your actual payout changes depending on your negotiated revenue-share percentage (applied to a net pool of roughly ₹1,60,000):
| Your Revenue Share % | Your Monthly Payout (approx. ₹) |
| 30% | 48,000 |
| 40% | 64,000 |
| 50% | 80,000 |
| 60% | 96,000 |
| 70% | 1,12,000 |
| 80% | 1,28,000 |
The takeaway: the exact same client base and trading activity can nearly triple your income depending purely on the revenue-share slab you negotiate — which is why choosing the right broker/partnership model matters as much as acquiring clients.
Revenue Share Ranges by Business Model Type
Not all sub-broker partnerships are structured the same way. Here’s how revenue share typically varies by model:
| Partnership Model | Typical Revenue Share | Best Suited For |
| Referral / Sub-Association | 10% – 30% | Beginners testing the business with minimal commitment |
| Standard Authorised Person (AP) | 40% – 70% | Most individual sub-brokers building a client base |
| Franchise / Master Franchise | 60% – 80% | Those investing more upfront for a larger, semi-independent setup |
| Subscription / Zero-Brokerage Model | Up to 100% of subscription-linked revenue | Tech-savvy partners comfortable with a flat-fee client base |
In short: the higher your revenue share, the higher your own investment, responsibility, and often your compliance burden tends to be too — it’s rarely a free upgrade.
What Determines Your Revenue Share Percentage?
Brokers don’t hand out the same slab to everyone. Your negotiated share usually depends on:
- Your existing client base or network — a larger starting network gives you leverage to negotiate a higher share
- Expected trading volume — brokers offer better slabs to partners likely to generate consistent turnover
- Investment/security deposit — franchise-level investment usually unlocks a higher share
- Track record — an experienced sub-broker with a proven client retention history can often renegotiate upward
- Broker’s own business model — discount brokers, full-service brokers, and subscription-based platforms all structure their payout differently
Beyond Brokerage: Additional Income Streams for Sub-Brokers
Brokerage revenue share is the core income, but it’s rarely the only one. Smart sub-brokers layer in:
- Depository Participant (DP) charges — a share of the charges levied when clients sell securities from their demat account
- Referral/override income — some brokers pay an additional commission when your sub-broker network brings in new Authorised Persons under you
- Cross-selling commissions — many sub-brokers also register as a mutual fund distributor or insurance agent to earn additional income from the same client relationships
- Value-added services — research subscriptions, advisory add-ons, or platform tools that carry their own revenue share in some broker programs
This layering is exactly why many finance entrepreneurs eventually combine a sub-broker business with a DSA business or MFD license — the client acquisition cost is already paid for; every additional product just adds margin.
Payout Frequency: When Do You Actually Get Paid?
Most brokers settle sub-broker commissions on a monthly cycle, typically within the first 7–15 days of the following month, after netting off any applicable charges or chargebacks.
Some new-age, subscription-based broking platforms have moved to weekly or even daily payouts as a differentiator to attract partners.
Always confirm the payout cycle, minimum payout threshold, and TDS deduction process in writing before signing a partnership agreement — this detail affects your monthly cash flow far more than people expect.
Factors That Increase or Decrease Your Sub-Broker Income
What increases your income:
- A larger base of active (not just registered) trading clients
- Clients trading in high-turnover segments like F&O and intraday, not just occasional delivery trades
- Negotiating a higher revenue-share slab as your book grows
- Cross-selling additional financial products to the same clients
- Low client attrition — retaining clients matters more than constantly acquiring new ones
What quietly eats into your income:
- High client churn (a client who stops trading stops generating commission)
- Choosing a broker purely on brand name without comparing the revenue-share slab
- Not tracking chargebacks, penalties, or deductions in your payout statements
- Spreading yourself thin across too many low-value clients instead of a focused, active client base
Frequently Asked Questions
Is sub-broker income fixed or variable?
It’s entirely variable. Sub-broker income depends on client trading volume and your revenue-share percentage — there’s no fixed salary component in this business model.
What is a good revenue-share percentage for a new sub-broker?
Most new Authorized Persons start in the 40%–60% range under a standard AP model. Higher slabs (60%–80%) are usually tied to a larger upfront investment through a franchise or master franchise setup.
Can a sub-broker earn a stable, predictable income?
Not entirely — because income is trade-volume linked, it will naturally fluctuate with market activity and client trading behavior. Sub-brokers who cross-sell mutual funds (which pay recurring trail commission) often build a more stable income base alongside their brokerage earnings.
Do sub-brokers get paid even if a client doesn’t trade?
No. Commission is generated only when a client actively trades. A registered but inactive client contributes nothing to your monthly payout.
How is TDS handled on sub-broker commission?
Commission payouts to Authorised Persons are typically subject to TDS deduction under applicable income tax provisions before the net amount is credited — always confirm the exact deduction process with your broker’s finance team.
Final Takeaway
A sub-broker’s income in India isn’t about a single magic number — it’s the product of your client base, their trading activity, and the revenue-share slab you’ve negotiated.
Two sub-brokers can start on the exact same day and end up in completely different income brackets a year later, simply because one focused on building an active, high-turnover client base while the other focused only on registrations.
If you’re evaluating this business, spend as much time comparing revenue-share structures across brokers as you do learning how to acquire clients — both decisions compound over time.