Suppose you have never been outside India and plan to go on an international vacation. In that case, chances are you will reach out to travel agencies for booking tickets, hotel recommendations, handling essential documents, tourist attractions, currency exchange, and all your travel-related queries. A travel agent takes a load of vacation planning by charging a small commission. A share trading franchise assists client investors in stock market trades in exchange for money.
How Exactly Does A Share Trading Franchise Work?
A share trading franchise can be described as an organization or institution. It allows a stockbroker to deal with various potential investors. A stockbroker regulates the selling and buying of stocks and helps investors make more informed financial decisions by providing investment advice. And security options, explaining data and figures, doing their investment activities, etc.
Most of the share market franchises also have authorized persons. They get usually hired by the stockbrokers of the franchise to carry out trading activities of investment clients. Therefore, they are also known as sub-brokers, upon a booming stock market investment through a franchise. The client pays a small commission to the stockbroker, which gets shared between the broker and the franchise. The ratio of revenue shared between the stockbroker and the franchise is finalized prior to the trading activity mutually.
How to Start A Share Trading Franchise?
Now that we are familiar with the basics of the share market franchise. The role of stockbrokers and authorized persons, and the difference between the two. Let’s consider why getting a share broking franchise is a good idea.
1. Less Work Required
The pandemic saw a sharp surge in the entrepreneurial mindset in India. People understood the importance of financial stability and began embracing non-traditional investment options. Such as the stock market and trading, to gain financial security. Getting a stock market franchise is an excellent opportunity for people who want to become their bosses. But do not have the time and energy to build a business from level zero.
2. Greater Technical Support
As mentioned, you don’t have to worry about starting a business from scratch by getting a franchise. Since the franchise works under the name and brand of a stockbroker. You get excellent technical support from the other side. The broker would not only take care of the clients. But they would also provide banners, boards, and holdings for advertising your Share Trading Franchise. Not only that, but you also get step-by-step assistance from the franchisor to establish your business.
3. Lower Risk Levels
As the owner of a stock market Share Trading Franchise. More than half of your work is done when you partner with a reliable stockbroker. The main factor that attracts potential clients is the name of the broker. If the broker is trustworthy, successful, and has good customer acquisition, the franchise wouldn’t even need a lot of advertising to become successful. You need to find a location that’s accessible to the majority of the population and a good customer support team.