SBI Securities franchise count is relatively limited in number and seems the broker has kept it that way intentionally, possibly for quality control. SBI Securities is one of the oldest and a well-known name in the financial market. It is on the way of becoming one of the leading broking company by providing a variety of products and services to its customers.
In this detailed SBI Securities franchise review, we will have a look at some of the basics, franchise criteria, fees, revenue sharing and other related information.
Hopefully, by the end of the review, you will be able to take a call on whether to go ahead with the SBI Securities franchise for your business or not.
SBI Securities Franchise Review
SBI Securities franchise/distribution model commenced in the year 1950. The largest bank of the country, SBI Bank, started its brokerage house known as SBI securities. The State Bank group and its subsidiary SBI capital, SSL, both are giving their best effort to reach the highest position in the field of stockbroking.
Here, in this article we are going to discuss different aspects of SBI Securities franchise, which includes business model, upfront cost, Revenue sharing ratio, offers to the sub-broker, initial investment etc.
Basic information about SBI Securities franchise are as follows:
SBI Securities have only one type of business model. If anyone wants to start a partnership business with SBI Securities then, he/she has only one option i.e
SBI Securities Sub-broker:
Since SBI Securities have a single business or partnership model, it helps the business like yours to concentrate entirely on the need for potential sub-brokers.
SBI Securities can easily find the problems and facilities required to become a sub-broker. After all, sub-brokers play an important role in the business expansion and geographical coverage of this broker.
SBI Securities franchise requires you to pay an initial amount to set up the infrastructure for starting the business. It includes multiple facilities such as an office, landline telephone and desktop, broadband connection etc.
The revenue sharing ratio of SBI Securities is kept in the range of 50% to 60% with a minimum investment of ₹1 lakh.
SBI Securities Franchise Revenue sharing model
SBI Securities understands that sub-brokers are an important part of their business. Revenue generated by sub-brokers motivates them to continue their partnership with SBI Securities. So, the broker believes that the revenue sharing ratio must be favourable to the sub-brokers.
This directly impacts the business revenue for the broker as a whole as well. In other words, it’s a win-win for both the parties involved.
The revenue sharing ratio of SBI Securities franchise has been kept at 50:50 or 60:40. It means a sub-broker will get the revenue in the range of 50%-60% of the revenue generated while the broker will get 40%-50% of the revenue generated by the sub-broker.
The final number depends on the scale of the business a sub-broker can bring and of-course the negotiation that happens over the table.
However, revenue sharing can go up to 60:40 based on the revenue generated by the sub-broker.
SBI Securities' Share
50% - 60%
40% - 50%
SBI Securities Franchise Costs
In order to start a partnership business with SBI Securities, a sub-broker needs to deposit an initial amount of minimum ₹1 Lakhs as a security deposit.
The range of security deposit is ₹1 Lakhs – ₹3 Lakhs which will be refunded when the sub-broker would like to exit or close the partnership business.
The sub-broker is required to deposit some non-refundable money also. Those details will be provided to you over the call itself, however here are some basic details:
Non- refundable security money includes the membership charge for BSE and NSE.
That money is used for the set up of sub-brokers business which includes the cost incurred for office and types of equipment.
Security money is used when the sub-broker obligates any requirement and liability which is mandatory according to SEBI guidelines.
In case of non- payment of any miscellaneous money required amount will be forfeited from the security money.
Here is the quick summary:
₹1 Lakhs - ₹3 Lakhs
SBI Securities Franchise Support
SBI Securities provides the following support by the partner program to sub-broker:
They provide support to set up infrastructure like support for the office management and support for the technology. Office management support includes all required support
They offer customer care support for any problem arises through phone and trade services.
The support provided by the broker to acquire clients helps the partner in getting experience and reading the mind of the customers. If a company gets excellence in reading the mind of customers, can get success easily.
Training support is also provided by the company to the partner via different methods like webinars, demo videos and different types of educational videos.
Marketing support is provided by the company through different channels like Tv advertisements, banners, pamphlets etc.
SBI Securities Franchise Registration
In order to start a partnership business with SBI Securities, You need to follow the following steps:
First of all, you need to fill an application form with your detailed information. You can either fill it online or offline. For a quick start, just fill in the form below with some basic details:
You will get a verification call by the call centre executive.
The call you will get for the purpose of an appointment and a detailed understanding of business models. You need to fix an appointment.
For the detailed understanding of business models, you need to meet the sales representative of the company.
You will be required to submit an initial amount of Cheque and documents.
Your documents will be checked for the verification and then processed later.
And, the last step is Account ID creation. After all verification, your account ID will be provided.
All process will take approximately 10-12 days to be completed.
SBI Securities franchise Advantages
Following are the advantages of doing a partnership business with SBI Securities:
SBI Securities is a part of a long-running reputed bank, ease of doing business with such a brand name. It helps in Instant client acquisition.
Clients can get the benefit of SBI trading account through all platforms available to the broker like mobile and digital based etc.
Online and offline trading facilities are available for the convenience of traders.
SBI Securities Offer flexible brokerage plans and increased return.
Helps in infrastructure setup.
Has potential for getting high returns.
A wide range of products and services available for third-party distribution.
SBI Securities franchise Offers
Following are the offers provided by SBI Securities to its sub-brokers.
A wide range of products which includes Equity, Currency, Bonds, shares, IPO’s, loan against securities etc.
Serves not only retail customers but institutional as well as NRI customers also.
Different methods are available for trading, research, and calculation which is required for the smooth running of a business. Methods include desktop, mobiles, and one can walk directly to the branch also.
SBI Securities Offer different types of investing methods to make it easy for sub-brokers to attract clients. It includes webinars, demo videos, website FAQ and expert talks.
They offer detailed analysis and research to sub-brokers which include fundamental research and analysis, Derivatives report, Tax calculators, EMI etc.
SBI Securities is a brand name well known among the players of the stock market.
The main way to expand the broker’s business is adding new business partners. So, the company knows the importance of sub-brokers associated with them and the value these partners bring to the broker business.
SBI Securities tries to support its business partners in almost all areas where ever required. It helps sub-brokers to run their business smoothly.
With the help of online and offline trading facilities, modern trading tools and techniques one can easily start a business with SBI Securities.
In case you are looking to get started with the sub-broker or franchise business, let us assist you in taking the next steps forward: