Upstox Franchise

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Upstox Franchise

6.9

Offline Presence

6.5/10

Market Reputation

7.0/10

Brand Equity

7.0/10

Revenue Sharing

6.5/10

Reliability

7.5/10

Pros

  • Low Initial Deposit
  • Regular Earnings
  • Minimal Operational Activities
  • Easy Onboarding

Cons

  • Limited Revenue Sharing
  • Single Business Model

Upstox Franchise is a newly launched sub-broker program in the broking market. This is one of the rarest business propositions since it is coming from a discount broker. Apart from Upstox, the other two discount brokers are 5Paisa Partner and Zerodha Franchise.

Upstox gives multiple self developed-trading platforms (namely Upstox Pro, Upstox Pro Mobile etc) and advanced technology to trade for the clients and business partners that help them in different ways.

Upstox Franchise Details

Upstox (Formerly known as RKSV securities) is a stockbroking firm which started its business in the year 2012 in the discount broking space. The company was founded by Ravi Kumar, Raghav Kumar and Srinivas Vishwanath. Today, the broker is India’s one of the topmost discount brokers which are specialized in zero brokerage cost models.

The business partner and clients of the company can trade on BSE, NSE, and MCX (started in the year 2016).

Upstox is also a registered member of NSDL and CDSL. It is also eligible to provide depository participants (DP) services. Upstox provides advanced technology to their clients and business partners to enhance their trading experience.

The broker offers a single business model to those who want to associate with the company. It charges a minimal initial deposit for starting a partnership business.

Upstox allows its customers to trade in different segments which include:

In this article, we are going to discuss different aspects of Upstox Franchise such as business model, revenue sharing model, initial deposit, offers to the sub-broker and many more.

Upstox Franchise Benefits

There are many advantages of starting a partnership business with Upstox broker. Some of the advantages are:

  • Although the company is a new entrant in the broking business in a very short span of time, it has achieved great success in terms of client acquisition and winning trader trust.
  • You can start a business with the Upstox with a minimal initial investment.
  • Offers self-developed trading platforms to the traders and business partners.
  • Quality support from the Upstox team is provided in handling any problem for running the business wherever required.
  • Easy steps to become a business partnership with the Upstox.

Upstox Franchise Business models

Upstox, as a potential business partner, offers only one business model to those who want to become a partner with the broker – Upstox Sub-broker (also known as Upstox Business Partner).

Offering a single partnership mode is both good and bad.

The good part is that Upstox has complete and total focus on this model making sure there is no stone unturned while offering value to their partners and to their respective clients.

At the same time, the darker side of the coin is that potential business partners with varied business aspirations and expectations may have a different requirement from the stockbroker offering such partnership opportunities.

In such cases, they won’t be able to partner with Upstox based on the current propositions.

Upstox Business partner or Sub-broker model:

The Upstox business partner model is very easy to understand and start. One can easily start a partnership business under this model. In this model, you will earn through the brokerage generated by your clients.
Anyone can enroll in this model and earn profits.

The Upstox franchise model is based on a per trade profit model. Once the business partner is enrolled, he/she can earn 10%-30% of the revenue generated by the clients. So, the more brokerage the clients of a sub-broker generates, better for them.

Not only this, but the sub-broker gets benefited from all the individuals who trade under his team. Actually, this model is also called a referral model. Here, a sub-broker can also earn by referring to his friends, relatives, friends of friends. He will get 10% of brokerage every time when a referred client will trade.

It means if a sub-broker stops trading by himself over a period of time, he will still earn a handsome amount through his referred clients who are trading under Upstrox.

As mentioned above, the revenue sharing ratio of Upstox Franchise model is 10%-30%.

The high and low range of revenue sharing depends on the overall brokerage generated by the clients of sub-broker. As Upstox does not ask for any infrastructure cost, it keeps the maximum percentage of revenue generated by the sub-brokers client.

The main broker keeps 70%-90% of brokerage.

For example, if your client network produced a total brokerage of 5 Lakh in the whole month, then you will be taking away 1.5 Lakh out of the total. The best part is, your involvement stopped as soon as you introduced the potential client to Upstox. Rest all operations including acquisition, onboarding, servicing, tech help, customer support is taken care of by the broker.

Upstox Franchise Security Deposit

Becoming a Sub-broker of Upstox is very easy and cheap. The broker just charges ₹3,000 as a registration fee out of which ₹2200 is charged by SEBI as their registration fee and the remaining ₹800 is taken by Upstox as services and handling charges provided to the business partner.

This is one of the lowest initial deposits (if not the lowest) by a broker. Merely ₹3000 is charged by the business partners to encourage them to become a partner with Upstox Franchise. This minimal initial deposit helps young and financially weak entrepreneurs to stand easily in the broking business without arranging huge initial money to start the business.

The main motive of this low initial deposit is to encourage more and more people to join Upstox and gain more profit in the business.

Upstox Franchise Offers

Following are the offers provided to sub-brokers by the Upstox Franchise model:

  • High-performance trading platforms are offered by the Upstox to its traders and business partners like Pro Web, Dartstock etc. These trading platforms make trading problem free and convenient for users.
  • Help and assistance provided by the Support team in using tools offered by the broker.
  • You will also get marketing assistance. The Support team of Upstox will help you in doing marketing for your business. They will provide you marketing materials like brochures, pamphlets, company information etc. to attract the clients for your business.
  • You will get a single-stop-shop dashboard to manage your all transactions in an organized manner. You can easily manage your trade history like you can track your trade accounts, manage your earnings records and also you can easily calculate brokerage on the month-to-month basis.

Upstox Franchise Registration

Since the company offers a single business model to the clients i.e. Sub-broker model or referrals. The Upstox franchise team will check your capability to bring more clients to the company and enroll them. If they are satisfied with your business plan and expectations, the partnership gets underway.

Since there are limited operational activities involved, the process to become a sub-broker with the company is relatively easy. By using the following steps you can become a sub-broker of Upstox.

  • Register yourself as a sub-broker business partner. You can do so by providing basic details here:
Sub Broker Business
  • You will need to impress the team of Upstox by informing them about your sub-broker plan. You need to tell them how you will get more and more clients or business leads for the company. 
  • If Upstox franchise team agrees with your business plan, you will get access to the dashboard and you can immediately start your business. 

The entire process will take almost 4-5 business days to complete. Having said that, we would advise you to have a thorough look at all the formalities involved before and during the partnership so that there are no glitches later.

Here are some benefits and concerns associated with Upstox Franchise business you should be aware of:

Benefits:

  • Very low initial deposit.
  • An opportunity to earn a profit even if a trader stops trading.
  • One of the top discount brokers in India, thus, owns positive brand equity.
  • Limited formalities involved.

Concerns:

  • Single business model.
  • Revenue sharing ratio can be increased.

Upstox Franchise Summary

From the above discussion, it is clear that Upstox is new but offers advanced technology for enhancing the trading experience of its clients and business partners. The broker offers a single model to the partners as it just started its franchising business. A sub-broker has a chance to earn by getting a percentage of revenue generated by its clients even after he/she stop business with the Upstox.

So, we can say that with this very minimal investment and a good chance of earning, one can easily start a business with Upstox. This suits you the most if you are a small to medium business enterprise.

To get you started with a stockbroking business model, let us assist you further:

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