IIFL Franchise is one the few broking franchise business who have grown significantly in last 2 years.
About India Infoline / IIFL Franchise
IIFL, a full service broker, has been offering IIFL franchise since way before 2003. Considering its goodwill and the fact that it is a growing firm, it is focusing on increasing its outreach to maximum clients and hence encourages a sub-brokership arrangement.
It has prescribed the following basic eligibility criteria:
- Secondary education; and
- Valid proof of address
Needless to say, it also requires the person to be registered with SEBI and relevant stock exchange as a stock-broker. This is a part of mandatory compliance and hence needs to be fulfilled by every candidate interested in stock-brokership.
How to become India Infoline Sub Broker/Franchise/Partner?
Upon receiving an enquiry for India infoline sub brokership, IIFL Team connects with the interested person and if the person confirms with the above mentioned criteria, it proceeds to further evaluate the candidate.
Upon confirmation, IIFL and the candidate execute a sub brokership agreement wherein the terms and conditions of the business are agreed upon. The terms generally cover areas such as the investments/ infrastructure requirements, the revenue sharing ratio, the compliance requirements, amount of initial deposit, if any and the nature of support that IIFL will lend to the sub-broker.
As mentioned above, before getting appointed as a sub broker, it is mandatory to get registered with SEBI by undertaking necessary compliance and paying the registration fees. This procedure is generally undertaken by the sub-broker independently, but depending upon the circumstances and situation, IIFL may assist in undertaking these compliance’s.
IIFL Partner/Sub Broker/Franchise Revenue sharing & fees
IIFL Franchise Revenue Sharing Model
IIFL offers a competitive revenue sharing model. The revenue sharing ratio is in line with that of its competitors. The revenue sharing ratio ranges from 50:50 to 75:25. The revenue ratio is decided while executing the agreement and is also a part of the agreement. The agreement also provides the fee and the brokerage that sub-broker can charge to its customers. It is necessary for IIFL to pre-decide the same as the customer would see that how much brokerage IIFL is charging to it and compare it with the other full service brokers. A sub-broker is also required to pay certain account opening charges like DEMAT account opening and Trading account opening.
IIFL Sub Broker Investment
IIFL, typically does not prescribe any major infrastructure investments from a sub broker. For a sub brokership, it only requires the person to have a computer with an internet connection. It may also require a sub broker to have a minimal office infrastructure, if required. The expense for this set up may be borne by the sub-broker itself or may be shared by the sub-broker and IIFL, depending upon the terms of the agreement.
Initial deposit paid by IIFL Partner/Sub broker/Franchise
This deposit is to be paid as margin money and taken to cover the risk of default that a sub-broker may make. This initial deposit may range from INR 50,000 to INR 200,000 depending upon the negotiation terms, the experience of the sub-broker, the existing infrastructure owned by the sub-broker and other relevant factors.
India Infoline (IIFL) Franchise/Sub broker/Partner Support
IIFL provides full support to its sub-brokers in terms of initial set up, brokerage flexibility, advertisement, brand building, developing relations with clients, assisting in marketing, credit period offered etc.
India Infoline or IIFL Sub Broker/Franchise/Partner offers
IIFL franchise does not have a tedious procedure for appointing a sub broker. The procedure is very simple and does not require any major cash outflows. It also supports s sub broker with setting up initial infrastructure. It often floats a scheme to encourage its sub brokers to enhance the business. Thus, it ensure a low cost initial investment and excellent revenue sharing model based on the services and range of products in offing.
It has formed an Executive club and membership to this club is offered to a sub-broker based on the business the broker gets, the experience, the tenure sub broker spends with IIFL etc. These members of this elite club get special privileges and support of IIFL partner. They are not only rewarded for their efforts, but are also given access to various value-added services so as to assist them in taking their business to the next level.
One such kind of assistance/support service is marketing support wherein the members are provided varied types of marketing material from IIFL free of cost. Further, the Executive Club members get support to enhance their business and getting new clients by conducting workshop / event / seminar/ investor awareness program.
Apart from the above mentioned benefits, IIFL franchise initiative also releases certain offers for its sub brokers from time to time. These offers may be in form of reduced brokerage or reduced margin money, free marketing support service, increased credit period, increased proportion in the client brokerage fee, reduced account opening fee etc.
Currently, IIFL sub broker program is offering a high brokerage sharing ratio wherein a sub-broker can get a chance to retain brokerage to the extent of 75% with itself.
IIFL partner is also offering a waiver of account opening charges in certain cases.
Further, IIFL franchise has also floated schemes wherein it is bearing expenses of initial infrastructure to the extent of 70%.
Why Partner with India Infoline or IIFL ?
One gets to be associated with a good brand
Research & Advisory support
Provides a Dedicated Relationship Manager
Offers entire gamut of trading product and services