Interest in the equity market has been growing among investors. To invest, one needs to go through brokers or Authorised Persons authorised by the stock exchanges.
The business model is something like this: Angel One provides the brand and infrastructure support in exchange for brokerage. The reward for higher brokerage received is in the form of higher commissions.
This can be a win-win situation because getting a broker’s license can be difficult and expensive, and the only way of getting a part of the pie is by being an Authorised Person. This kind of Authorised Person business model allows smaller players to enter the market without them needing to make expensive investments in infrastructure and marketing. Brokers also benefit since they can expand their footprint considerably across the country without spending much on staff and infrastructure. It means more significant volumes of transactions for brokers, and more brokerage and commissions all around.
In Angel One Authorised Person business model, a significant chunk of the brokerage is paid out in the form of commissions. These could range anywhere between 50 percent and 70 percent. If you have enough experience in the business and useful contacts and client list, Angel One will have no hesitation to offer you more in commissions.
an Authorised Person business will depend on the number of clients. Large the client base, higher will be the earnings. It goes without saying: larger the enterprise, the more the profit potential.
Angel One is one of the biggest names in the broking world. It employs over 4,000 people, has 11,000 plus Authorised Persons, 12+ lakh retail clients, 11,000 trading terminals, 110 branches and continues to grow. It’s ideal if you want to get into the Authorised Person business.
What you need to be an Authorised Person
You do not need a fancy degree but basic education would help along with knowledge of Financial Markets. But the most important thing you need is a business acumen, passion and zeal to succeed along with a lot of hard work.
Types of partnership models
Angel One’s Authorised Person business model has three kinds of partnerships. These include sub-broker, master franchisee, and remisier.
- Sub-broker: This is an arrangement where an individual or company enters into an agreement with the company. Angel One provides the brand name, infrastructure and training support. In exchange, the Authorised Person is paid a commission from the brokerage earned from each transaction. He or she also has to pay an initial refundable deposit to the company.
The stock Authorised Person business can be competitive because of the large number of players in the field. However, you must also remember that interest in investment avenues like stocks, mutual funds, commodities, derivatives and other products is growing by the day. Angel One provides excellent infrastructure, marketing, and training support. With a little bit of investment of resources and energy on your part, you could make a success of it. The commissions are generous; if you get an extensive client list, the sky could be the limit.