Kotak Securities Franchise opened up its venture in 2011 & is one of the major broking franchise house in India. In this article, we will have a detailed Kotak Securities Sub Broker Review. In this review, we will dig deep into Kotak Securities Franchise Offers, Kotak Securities Sub Broker Commission, Kotak Securities Franchise Cost & other features of Kotak Securities Authorized Person Program.
Kotak Securities Franchise Customer Ratings & Review
|Kotak Securities Franchise Ratings|
|Products & Services||8.6/10|
About Kotak Securities Franchise
If the same is to be believed, then Kotak Securities Franchise can be said one of the first few players who recognized the business and revenue potential and appreciated the significance of having local retail outlets and addressed the same.
Kotak Securities has also been one of those few broking companies who opened the opportunities for sub-brokers to expand their client base. Over a period of time, Kotak Securities has also devised a number of business association models with different features that might be suitable for different category of people.
If you are interested in a sub-broker arrangement with Kotak Securities, then must read this article so that you can have a basic understanding of the models available and choose as per your preference.
Having been long in the market, it has certainly understood the varied requirements and expectations of a Kotak securities sub broker and hence it offers a variety of business association models. Though the basic concepts of the model are same across, but they certainly have distinctive key features to cater to the different strategy.
According to latest SEBI Circular release on Aug 3rd 2018, All Sub Broker Registration will be converted into Authorized Person Registration. The existing sub brokers of kotak securities will have to start their registration as Kotak Securities Authorized Person by Mar 2019. All new registration will happen with the name of Authorized Person directly with Stock Exchanges.
Become an Authorized Person of Kotak securities
The business models offered by Kotak Securities Partner initiatives:
- Sub Broker or Authorized Person- a typical sub broker or partner arrangement
- NetInvest Ace – This is relevant for a person who is currently serving its clients with their mutual fund and IPO investments and wishes to expand the service offerings to include equity.
- NetInvest Direct – This product is crafted for people who wish to restrict their services to sourcing clients and do not wish to cater the clients with advisory services or with portfolio managing services
These models have been discussed herein below in further detail:
Kotak Securities Sub Broker / Franchise / Authorized Person Model
To begin with, we are discussing the eligibility criteria set by Kotak Securities for appointing a candidate as a sub broker or Authorized Person. Needless to mention, one needs to be necessarily registered with SEBI and the relevant stock exchange. Apart from this, the criteria, specific to Kotak securities franchise are:
- Minimum age to be atleast 21 years
- Should have an experience ranging from 1-3 years in the financial market
- Should have atleast completed higher secondary education
A Kotak Securities Authorized Person can serve the client with all the products and offerings of Kotak Securities like equity, derivatives, mutual funds, IPOs, depository services, margin trading facility etc. Apart from this, it also offers access to the risk management services, back-office support and the technology.
Benefits of Kotak Securities Authorized Person:
- Huge range of products & services to sell
- Association with a huge brand name
- Benefits by adding new clients
- Allows customized solutions for the sub-broker’s prestigious clients
- Smart analytical tools & trading platforms available
Kotak Securities NetInvest Ace
NetInvest Ace is a programme for a person who is engaged in investing activities like IPO, mutual fund etc. and wishes to enhance the product base with trading products like equities.
Hence, this is a business expansion programme of Kotak Securities which is specifically devised to help sub-brokers in boosting their business.
This is a popular programme as many investment advisors find this as an addition to their income stream. This gives them opportunity to advise their existing clients to also undertake trade activities in addition to investing activities.
Benefits of Kotak Securities NetInvest Ace:
- An additional income stream
- Existing client base and existing business does not suffer
- More products to deal in and hence better business opportunities
- Diversified business profile
- Helps in expansion of client base
Kotak Securities NetInvest Direct
NetInvest Direct is a programme similar to remisier model offered by other broking houses. Herein, the sub-broker is merely required to refer a potential client opportunity to Kotak Securities and all other things are taken care of by Kotak Securities.
Hence, the candidate acts as a referrer. This is suitable for people who do not want to get engaged in a full time business but have a bunch of social groups who may be interested in undertaking trading or investing activities. This is generally taken up by a lot many people as an additional pocket money.
Benefits of Kotak Securities NetInvest Direct:
- No hassles of business
- Limited functions
- No risks involved
- Opportunity to capitalize the social groups
- Acts as an additional income
Kotak Securities Sub broker Commission/ Revenue Sharing Model
Kotak Securities has a different remuneration mechanism for each of its models or programmes. Undoubtedly, Kotak Securities has a very competitive remuneration policy – this ensures that it does not lose any able & deserving candidate to a competitive firm just for a few extra pennies.
Infact, Kotak Securities is also a very approachable firm in that sense and the revenue ratio is also negotiable with them. However, the negotiations are based on very practical and realistic factors. Further, the revenue ratios that they initially offer are also dynamic depending upon the capability of candidate, the city, the status of market, the projected & existing client base etc.
Commission Sharing of various Kotak Securities Franchise Business Models:
- Kotak Securities Sub broker or Authorized Person: Considering the functions involved & other factors, the revenue sharing ratio ranges from 30% to 50% on an average. However, as mentioned above, there may be exceptions to this as their ratios are negotiable & are dependent on lot many factors.
- Kotak Securities NetInvest Ace: Under NetInvest Ace, the candidate would be certainly an experienced person and would have an existing client base – Kotak Securities understands that with this existing client base, there is a high chance that these clients may also buy its other products and hence it has an average revenue sharing ratio of 50% to 80%. The ratio is high also because of the factor that the candidate would be an experienced one – hence would certainly expect a good deal.
- Kotak Securities NetInvest Direct: This is a referrer model and hence the functions, responsibilities & risks are minimal – hence the return are also on a lower side as compared to the other two models. However, on being compared to the industry rates, Kotak Securities give a very decent return to their remisier. The return herein varies from 10% to 20%.
Check the table below for better understanding of Kotak Securities Commission Sharing:
|Kotak Securities Commission||Sub Broker Commission|
|Kotak Securities Sub Broker or Kotak Securities Authorized Person||70% – 50%||30% – 50%|
|Kotak Securities NetInnvest Ace||50% – 20%||50% – 80%|
|Kotak Securities NetInvest Direct||90% – 80%||10% – 20%|
Find the list of Sub broker Franchise with decent revenue sharing models:
|Zerodha Franchise||Motilal Oswal Franchise||Angel Broking Franchise|
|ICICI Direct Franchise||Upstox Franchise||Kotak Securities Franchise|
|HDFC Securities Franchise||Tradebulls Franchise||Edelweiss Franchise|
Kotak Securities Franchise Cost or Security Deposit
In accordance with the industry practice, Kotak Securities also places a requirement of security deposit. This deposit is refundable in nature and is taken as a deposit in the first place to cover Kotak Securities against any monetary default that sub-broker might commit.
This is generally just a formality and is also a mandatory requirement. This deposit is refunded at the end of the agreement or arrangement. The deposit amount varies from INR 20,000 to 2 lac depending upon the kind of model chosen, the revenue figures being generated, the city of residence, the credit history etc.
Find the list of Stock Market Franchise with low initial investment amount:
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Kotak Securities Infrastructure Cost
The other category of investment that a sub-broker or authorized person needs to make is the infrastructure investment. That is the office or workplace set up that a sub-broker needs to maintain to attend the clients and to conduct day to day business. The typical infrastructure includes a decent sized office space, workstations, telephone lines, internet connectivity, employees (if required), basic furniture etc.
The infrastructure investment would differ in case to case depending upon a number of factors – the current infrastructure (in case of NetInvest Ace), city, types of clients etc.
For instance if the current infrastructure is not in accordance with Kotak Securities requirement then one may need to make an investment to do the necessary modifications. Similarly, in case of a tier 2 city, the area of office prescribed may differ and so on. On an average, this investment may range from INR 50,000 to INR 2 lacs.
Find the table below for better understanding of Kotak Securities Franchise Cost:
|Kotak Securities Franchise Cost|
|Kotak Securities Sub Broker or Kotak Securities Authorized Person||INR 50,000 – 100,000|
|Kotak Securities NetInvest Ace||INR 100,000 – 200,000|
|Kotak Securities NetInvest Direct||INR 20,000|
Kotak Securities Sub Broker Offers
Kotak Securities has always recognized the great potential that sub-brokers carry for the growth of business. Hence, it has been always devised a lot of ways to retain and attract sub-brokers. Some of the offers of Kotak Securities are:
- Marketing Support
- Infrastructure support
- Progressive revenue sharing ratio
- Customized packages for clients of sub-brokers
- Free DEMAT account for sub-broker clients
- Reduced margin money requirements
- Increased credit period for the sub-brokers and their clients
- Limited paperwork
- Free research & advisory services for a limited time
Kotak Securities Authorized Person – Eligibility Criteria
The eligibility criteria prescribed by Kotak Securities are laid down below:
- The first & foremost is the statutory requirement- registration with SEBI & association with NSE/BSE.
- Age criteria – the sub-broker needs to be atleast 18 years old
- Qualification criteria – The sub-broker should have atleast completed higher secondary
- Good background – The candidate with a bad character history or a bad background may not qualify
- Experience – Any experience in stock or financial market may be an added advantage. This may certainly differ from model to model.
- Certifications – Any certificates from stock or finance related institutes may be added advantage.
How to become a Kotak Securities Sub broker or Authorized Partner?
- You may fill up the form herein
- Our executives will connect with you. Please ensure that details filled are proper else it will be difficult to take the process forward.
- Our executive will fix up a meeting between you and Kotak Securities executive.
- Kotak Securities executive will discuss the models available & suitable for you. The other terms & conditions can also be discussed during this meeting.
- You will then have to provide all the documents & proof of investments
- An agreement will be executed wherein all the terms and conditions will be documented.
All in all, one needs 5-7 business days to start the business as a kotak securities authorized person.
Documents required to become Kotak Securities Authorized Person
The basic documents that are generally required for registration as a sub-broker are:
- Identity proof
- Address proof
- SEBI registration certificate copy
- Graduation degree copy
- Copy of 10th marksheet
- Copy of other examination certificates
- Investment proof
Know about other stock broking franchise:
|Religare Securities Franchise||Karvy Franchise||Jhaveri Securities Franchise|
|Reliance Securities Franchise||K R Choksey Franchise||Jainam Share Consultants Franchise|
|Profitmart Franchise||JM Financial Franchise||Indiabulls Ventures Franchise|
Why Partner with Kotak Securities?
Here are few reasons to partner with Kotak Securities:
Kotak Securities is a part of finance giant and hence carries with itself a great brand. This would definitely add weightage for the sub-broker.
Business Development Support:
The business support that Kotak securities provide is also great strength to sub-brokers. Kotak Securities partner program help their sub brokers in generating more revenue.
Dedicated Relationship Officer:
Kotak Securities appoint a dedicated relationship manager to assist in making and retaining clients.
Seminars & Boot Camps for Sub Brokers & Clients:
The regular seminars conducted by Kotak Securities is a big add on as these help the sub-brokers in imparting the knowledge and thus keeping a regular interaction between sub-brokers and clients.
Training & Trading Support:
Kotak Securities also assist the sub-brokers with training on how to operate the trading platforms and how to efficiently use their smart analytical tools.
Dynamic Brokerage Plans:
Kotak Securities has very reasonable & dynamic brokerage plans which makes it a great choice for the investors & traders and hence a good business opportunity for sub-brokers.
Kotak Securities Franchise Client testimonials
I am highly appreciative of the marketing support that Kotak Securities have provided. They helped in kicking off the business and also keep assisting with all the client related issues. They have a great customer support team. BY – Akshay Kale, Nagpur
I have been into sub-broker business since long but have never been as happy as I m after being associated with Kotak Securities. Their customized solutions for my HNI clients have proven boon for me. Now those HNI clients are my permanent clients. Grateful for their service. Kotak Securities rock! By – Kishan K Kabra, Madhya Pradesh
For 3 years I was an investment advisor but I never thought of becoming a sub-broker as it required a lot of formalities and I felt a high degree of risk. Later, I somehow got to learn about Kotak Securities NetInvest Ace – I took a chance with them as they are a part of big group. And that chance worked in my favour. I have been fortunate to get NetInvest Ace registration. The business has ever since always grown. By – Ravi Ameta, Kolkata
Kotak Securities Franchise Summary
With a variety of business models to choose from and with strong customer support team, Kotak Securities is one strong contender in sub-broking business.
Kotak Securities give an option to be a full-fledged sub-broker or to be remisier or to just add on equity as a product if one is already dealing in investment products. Not to miss, the attractive revenue sharing ratio and the reasonable investments which make the business more tenable and affordable.
Kotak Securities, thus, can surely be a great choice for a sub-broker as it also provides constant support in all aspects – be it technical, marketing, research, advisory or any other field.
Lastly, the easy & simple registration process – there would be no harm in connecting with them and evaluating the opportunity. Please fill in the lead form and we will connect you with them within one business day.
Kotak Securities Authorized Person Program FAQs
Ques 1 – Who is a sub-broker?
Ans – A sub-broker is a person who does not undertake trades directly for a client but routes it through a principal broker. It is like acting as an extended arm.
Ques 2 – How to become a sub-broker?
Ans – Please fill in the lead form here and the Kotak Securities executive will connect with you in 2 business days.
Ques 3 – Necessary requirement to become a sub-broker?
Ans – A person needs to be/have:
- Atleast 18 years old
- Higher secondary education
- Ready to make some investment
- Stock Market experience is beneficial
Ques 4 – How much does a sub-broker earn?
Ans – Earnings depend upon number of clients and the value of trade undertaken by them. Sub-broker earns certain fixed percentage, say 30% or 50% or 80% of the revenue that they give to principal brokers.
Ques 5 – How does Kotak Securities support sub-brokers?
Ans – Kotak Securities provide:
- Training on finding clients
- Training on how to operate trading platform
- Marketing support
- Training on how to sell products
- Dedicated relationship manager
- Advisory services
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