LKP Securities Franchise options are generally limited in nature as of now, although the broker has a vast offline coverage overall. Thus, if you want to be a new partner, there are going to be a few areas of discussions to be done. At the same time, you need to understand the different business propositions it has to offer for you as a partner.
LKP Securities is an age-old company (really old!) which has a strong position in the field of financial solutions. The company provides its business partners and clients with a wide range of services including customized research and advisory services.
LKP Securities Franchise Details
LKP Securities started its operation in the year 1948 while its franchising/distribution started the year 2005. The key businesses of LKP Securities include equity broking and distribution, Merchant banking, Fixed deposit and some prop activity. The broker is ISO-9002 certified and has a reputed space in the market.
LKP Securities has over 1,00,000 registered clients in retail. As per the claims of the broker, it has over 3500+ outlets which include 25 owned branches across 200 cities in PAN India. The regional offices of the company are located at Kolkata, Delhi, Pune, Hyderabad, Mumbai, Chennai, Banglore, Ahmadabad, Lucknow, and Nasik.
The broker is registered with SEBI.
Customized research and advisory services are provided by the broker’s fundamental and technical helpline/desk. Here is the list of products & services offered:
Here are some stats around the offline coverage provided by this full-service stockbroker. Although, it is clear that the broker does not really carry much of brand equity but still has been able to cover sizable geography through its franchise and sub-broker offices.
Here are the details:
Sub Broker/ Franchise Overview
Number of Outlets
Number of Cities
Office Size Requirement
100 Square Feet
₹25,000 - ₹1 Lakh
Sub Broker / Franchise
50% to 60%
LKP securities Franchise Business Models
LKP securities broker has a single business model. They believe that one business model can be managed easily and they can provide various offers to their customers also.
Sub-broker/franchise business model:
This model is a normal sub-broker or franchise model (the term is used interchangeably) where a sub-broker does all the work in line with the responsibilities of a broker. They acquire clients, give them training, space for trading, tools, trading platforms and all the things which are required for trading.
LKP Securities, who is driving all these processes from the backend i.e. setting up the trading applications, providing training materials, share market research and recommendations take a corresponding cut from the revenue generated by the sub-broker.
As a business partner, you are required to deposit security money with the broker. That money is used for infrastructure set up for the sub-broker. The higher the security money the better the revenue sharing ratio (yes, it works like that!). In fact, you may choose to negotiate with LKP Securities executive before you sign the papers on the kind of revenue sharing you can work on.
Revenue sharing also depends on the number of clients a franchise/sub-broker has and the corresponding revenue generated by the sub-broker with the previous broker. This gives LKP Securities an idea on the kind of scale this sub-broker can bring to the table.
Let’s have a quick look at some of the pros and cons of setting up an LKP Securities Franchise:
A good opportunity to earn more revenue for a sub-broker.
The broker can easily take care of the business and can also provide more facility to the business partners.
If anyone wants to associate with LKP Securities, they have only one option of business model to do this.
Limited way to earn more revenue from the business associates. As one business model will contribute less revenue to the broker in the comparison to multi-business model. Nonetheless, revenue sharing depends on our negotiation, as mentioned above.
LKP securities Franchise Revenue Sharing
LKP securities, as a broker, believes that success comes when the business partners are happy. So, the broker shares a favourable revenue sharing ratio to the sub-broker. Here a sub-broker will get a very exciting revenue share.
The revenue sharing ratio may vary from 50:50 to 60:50 or depending on other factors can be more than that also. It gives an opportunity to the business partner to earn more as per your trading talent.
If you can generate more revenue your share of revenue will be high and ultimately you can earn more profit.
Here is a quick look:
LKP Securities Share
40% - 50%
50% - 60%
LKP Securities Franchise Costs
To start a business with LKP securities, you need to deposit an initial amount (well, that is mandatory with any other stockbroker too). The security deposit ranges from ₹25,000- ₹1,00,000. The security deposit of the broker is very low to help the sub-brokers to start their business easily. Some brokers take deposits in the range of ₹2 Lakh+.
Along with the security deposit, a sub-broker must have an office space and basic understanding of the stock market to start the business.
₹25,000 - ₹1 Lakh
LKP Securities Franchise Eligibility
Every broker has fixed some criteria for the business associates who want to do business with them. Not like other broking houses who have at least 2-3 sets of requirements to start the business with them, LKP securities has only a single such business criterion.
The criteria which are required for a sub-broker to associate with the company is:
To become a sub-broker/franchise, needs a few years of experience in a broking company, either as a sub-broker or an employee.
Basic education qualification.
LKP Securities franchise Offers
LKP Securities provides the following offers to the sub-broker to motivate them to do business with the broker. Following are the offers:
Sub-brokers are trained and given a detailed idea of the working process of the company. They are learned by the company to get maximum profit by full utilization of resources available with the company.
Marketing support is also provided by the company like advertisements of the sub-broker.
Full knowledge of the software which is used by the broker is provided to the business partner.
For any kind of support, sub-broker can call the customer care desk.
LKP Securities franchise Registration
To become a sub-broker of the broker LKP Securities, one must go through the following process
The first step, to fill the registration form of the broker. You can also fill the below-displayed form as well to get a callback:
The concerned person will contact the sub-broker in few working days.
The sales executive you inform the sub-broker about the different plans and schemes of the broker.
If a sub-broker agrees with all things and want to proceed documents will be verified by the company.
After that, sub-broker needs to deposit a minimal initial amount as a fee.
Once, the above process is done, sub-broker will get a registration number.
All procedure will be completed within a few working days.
LKP securities franchise Support
These are the support and value-added services provided by the broker to sub-broker.
Research and advisory services.
A high-grade technology that supports connectivity to seamless trading.
A dedicated relationship manager to help in queries related to business and sales.
Online products available for partner client with no additional cost.
24*7 back office support for both client and business partner.
LKP Securities Franchise Benefits
Here are some of the advantages of setting up an LKP Securities franchise:
An old and trusted broking company in the financial market.
A wide range of product and services offered.
Has only one business model i.e. sub-broker/franchise business model. One model means easy for the broker to manage the partnership business.
Pan India presence with more than 2300 branches in 200 cities.
Low initial investment (₹25,000- ₹2,00,000) in comparison to competitors.
Opportunity to earn more and more, as the revenue sharing model is totally based on the business or amount of partner/associate brings to the broker.
Strong research and analytical capabilities of the company.
Both online/offline trading facility available.
One can access trading tools in almost all devices.
Customized services available according to the demand of customers.
Trading platform and various tools are user-friendly.
Not only this much but the company provides a diversified range of services so that it can become a one-stop destination for all customers. Following is the portfolio of services:
Equity broking in cash and derivatives
Debt and money market broking
Loan against shares and margin funding
Merger and Acquisition (M&A)
Life insurance distribution
LKP Securities Franchise Conclusion
LKP securities, as a stockbroker, has successfully captured the broking market with a strong client base and a range of product and services. It has more than 1,00,000 customers who trade on a regular basis with them. It has a strong reach in more than 200 cities which reflects its strong base all over the country.
They provide new technology and trading software to their partners as well as clients so that they can trade easily. The broker offers almost all help and facilities to their partners so that they can start their business without any hurdle.
In case you are looking to get started with a stockbroker sub-broker or franchise, let us assist you in getting started:
LKP Securities Franchise Locations
Following are the expansion location of LKP securities across different parts of the country: