Roles & Responsibilities of a Sub Broker – Acquisition, Servicing & Retention

The stock market has been doing well for quite some time, and many people who love to own a business have been looking at it as a potential opportunity to start their entrepreneurship journey.

With stocks and investments offering better returns, traders show great interest in the financial markets.

Though investments are subject to market risks, this isn’t stopping Indian investors from investing and trading.

The Securities and Exchange Board of India has mandated that a stockbroker or sub-broker be required to conduct stock exchanges.

The individuals are not allowed to perform stock exchanges on their own. Instead, they must rely on sub-brokers or stockbrokers to do the job.

Coming to the sub-broker is someone who guides the client regarding the stock and exchanges on behalf of the stockbroker.

The sub-broker guides the investor in the right direction to make decent profits. He uses all his experience and knowledge to suggest high-performing stocks.

If you are new to the sub-broker business and want to know their roles and responsibilities, read this article well!

Roles & Responsibilities of a Sub Broker

Who is a Sub Broker?

Sub-brokers work under stockbrokers and sell the products and services offered by the stockbrokers to clients.

Furthermore, they help the stockbrokers expand their business. The stockbroker pays a commission to the sub-brokers for every successful trade or investment.

However, the commission differs from company to company. They bring in investors or traders to participate in the stock exchanges through the stockbroker, which earns the stockbroker a decent amount.

Also, they maintain client retention by offering exceptional services. The thing is, the sub-brokers don’t work with the SEBI directly.

Instead, they connect with the stockbrokers with whom they share a good rapport and assist them to expand their business at the cost of some decent bucks.

Besides, as a sub-broker, you can be your own boss, and with continuous effort, you can take the business to new heights.

Over time, you can become a registered sub-broker under any stockbroker in your preferred market and kickstart your entrepreneurial journey.

Roles and Responsibilities of a Sub Broker in India

Here are the general roles and responsibilities of a Sub-broker:

Client Acquisition

A sub-broker’s first and foremost responsibility is to bring potential clients to the stockbroker for the business.

The sub-broker should have complete knowledge of the products and services offered by the stockbroker; only then will he be able to reach out to clients and sell them.

The first step is to help the clients open a demat and trading account. On opening the account, clients will be educated on market trends, investments, and risks.

Execute Orders from the Client’s End

After onboarding the clients, the sub-broker makes them invest or trade through the stockbroker’s platform.

With guidance acquired from the sub-broker and some self-knowledge, the client executes trades.

For every successfully executed trade, the stockbroker receives a commission, from which a portion is given to the sub-broker.

Market Research and Analysis

For a sub-broker to provide proper guidance to the client, it is essential to have complete knowledge of the fluctuating market and be able to analyze it.

With knowledge about the market and analysis, the sub-broker can offer clients practical investment suggestions.

So, the sub-broker should keep the clients updated about the latest market trends, research reports, analysis reports, etc.

Personalized Client Assistance

To maintain client retention, the sub-broker must provide personalized services. Yes, clients often return to those who offer them tailored services per their needs.

As a sub-broker, you can expect 100% retention if you deliver exceptional services. Besides, the sub-broker should have a healthy relationship with the client to run the business smoothly.

You have to make your client feel you are just a phone call away to answer their query.

Compliance with Rules and Regulations

Sub-brokers should ensure that clients meet all the rules and regulations set by the SEBI and exchanges.

They are also responsible for verifying the documents clients submit when opening a Demat account. Thorough verification of the documents will avoid illegal activities.

Risk Management

Another primary responsibility of the sub-broker is helping clients with risk management.

As most clients are novices about their investments and trades, the sub-broker should be able to guide them accordingly and give them an overview of the potential risks involved.

The client then makes wise investment decisions based on the amount of risk they can take.


Reports provided by the sub-brokers can help clients make the right decisions regarding investments and trade exchanges.

Sub-brokers also have the responsibility of providing clients with reports on various aspects, such as performance, investment portfolio, transaction history, accounts, etc.

By tracking these reports closely, clients will understand how their investments perform over time.

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​​​​​​​Roles & Responsibilities of Sub Broker – Conclusion

The stock market is one of the most volatile industries in the world, and it is next to impossible for a novice client to delve into it and try their hand without proper guidance.

However, with the appropriate guidance from an intelligent and experienced sub-broker, a client can move mountains in the stock market industry.

Also, a stockbroker needs support from a sub-broker to expand the business and reach out to the masses.

In short, there is not one but many essential responsibilities that a sub-broker should shoulder to lead a successful sub-broker business.

Their experience and hard work help the client and the stockbroker grow.