HDFC Securities is a prominent bank-based full-service stockbroker in India with its headquarters in Mumbai. The broker offers a 3-in-1 Demat account which basically integrates your trading account with the bank account. With sub-broker offices in the range of 250, HDFC Securities has relatively limited offline presence as compared to other full-service stockbrokers.
In this detailed review, we will talk about specific criteria that you need to fulfil for HDFC Securities Sub broker business along with information on fees, revenue sharing, advantages, disadvantages etc.
With HDFC Securities Sub-broker business, you can offer your client base the following financial products for investment and trading:
In case you are looking to open an HDFC Securities Sub-broker business, you need to take care of the following eligibility criteria:
You must be at at least 21 years of age.
As far as educational background is concerned, although 10+2 is the minimum requirement, however, a bachelors degree is preferred.
Professional experience of 2 years or more is the minimum duration you need to have.
There will be some documentation that you need to provide, including:
GST Registration (for medium to large scale businesses)
Passport sized photographs
Date of Birth Certificate
Cancelled Cheque of your bank account
There may be few more requirements that you need to take care of that and such points will be discussed with you over a face to face meeting with the HDFC Securities executive. However, the points mentioned above cover the primary requirements that you need to take care of.
HDFC Securities Sub Broker Fees
In order to get started with this bank-based stockbroker, you will need to shell out some monetary arrangements too. As a refundable security deposit, you will need to pay ₹2 Lakh rupees to start with. Apart from that, there will be few more expenses including registration charges, certification charges etc.
You will also need to set-up an office in a commercial space in your city or town. This office can be at rent or owned by you. Furthermore, you will need to hire few employees for customer support, operational assistance etc. All these costs are going to be taken care of as operational expenses.
HDFC Securities Sub Broker Revenue Sharing
Just to give you a basic understanding, when you start a sub-broker business with any stockbroker (for that matter) – the money you make is basically a percentage of the overall brokerage you generate from your client base. Thus, the business revenue has a direct relation to what you make from the clients you have acquired.
In case of HDFC Securities, this revenue sharing percentage can be anywhere in the range of 50% to 70%. In other words, if you generate brokerage of ₹5 Lakh in a month, then you may get anywhere between ₹2.5 Lakh to ₹3.5 Lakh depending on the arrangement you have with the stockbroker.
How to Open HDFC Securities Sub Broker?
Here are few steps that you need to take if you are looking to open a Sub-broker business:
Step 1: First of all, just fill some basic details in the form below:
Step 2: Once these details are submitted, a callback from the broker is arranged for you. In this callback, the executive is going to ask some business related details from you and also will guide you on the steps ahead. There may be some documentation that the executive may ask you to send over an email.
The executive will arrange a face to face meeting with you where an on-field will executive will come to your office/home/preferred location and verify the details submitted by you. You will also need to fill the sub-broker form while attaching the relevant documents along.
This is the step where the costs associated with the sub-broker business will be informed to you. Furthermore, you can negotiate with the executive in terms of the revenue sharing part.
Step 3: As an extension to step 2, you will be required to provide a cheque to the executive as the refundable security deposit. Apart from that, you may be charged some registration fees as well.
Step 4: Once all the documents are provided, all details are verified and processed in the backend. Post verification, your account is activated by the broker team. You will be provided credentials to back-office, admin trading platforms and other related tools.
All these tools will assist you in carrying your sub-broker business smoothly.
You will also be provided with regular marketing support from the broker in forms of brochures, Marketing Collaterals etc so that you stay consistent with the brand. All these marketing activities are taken care by the broker and it directly assists you in increased client acquisition.
Furthermore, as a full-service stockbroker, HDFC Securities provides regular research, tips and recommendations to its partners. If you choose to become HDFC Securities sub-broker, you will be provided reports so that you can further share it with your client base.
HDFC Securities Sub Broker Advantages
There are certain advantages that you get once you choose to become an HDFC Securities Sub-broker as listed below:
Since HDFC Securities is a bank-based full-service stockbroker, it provides your potential client base with a “sense” of trust. This helps for easier customer acquisition since beginner level traders generally do not trust new or non-conventional financial companies.
The broker has a limited offline presence. Thus, if you choose to become an HDFC Securities sub-broker, you may leverage the brand with limited competition around your location.
HDFC Securities, as a brand, has a decent recall.
The broker provides you with marketing collaterals on a regular basis. These activities assist you in quicker customer acquisition with limited or no extra cost involved.
In the end, we would like to mention that there is a definite opportunity out there in case you are looking to be an HDFC securities sub-broker. With limited current strength and a decent brand name, HDFC securities can be placed among the top stockbrokers that you may look to get start your share market business with.
The returns may not be high if you start small but in the long term, it is definitely a promising brand to work with.
In case you are looking to open a sub-broker business, just fill in some basic details in the form below and a callback will be arranged for you:
HDFC Securities Branches
Currently, HDFC Securities has a presence in the following locations across different parts of India: