Stockbroking has emerged as one of India’s most critical components of easy trading. On the other hand, various financial instruments with varying forms and purposes are present in the stock market. In addition, stockbrokers play a variety of functions to support investors who want to purchase various financial assets. Sub-brokers and remisiers are two such crucial positions. Although minor technical distinctions exist, both names are frequently used interchangeably.
Consider the stock market a massive stadium with remisiers and sub-brokers acting as the backstage directors, each responsible for a distinct set of responsibilities. Like architects, sub-brokers carefully plan investments and carry out deals on behalf of customers. To make sure that the investments of their clients are maximised for development and security, they collaborate closely with stock exchanges and licenced brokers.
Remisiers, on the other hand, act as the whisperers of the market, bringing together sub-brokers and investors. They provide clients with helpful advice and support instead of actually executing deals. Their function is essential to attracting new investors and opening the financial sector to more people.
Understanding remiser vs sub-broker is vital, particularly for those looking to begin a career in the field. The remisier and sub-broker play the same duty. They act as a go-between for investors and stockbrokers, receiving a commission on sales. They both adhere to radically different business models.
As a stockbroker’s go-between, a remisier brings in business by introducing clients to the broker and gets paid a commission. A remisier meaning is more of an introducer than an official brokerage representative. It’s critical to distinguish remisiers from licenced agents and financial advisers when interpreting the definition of remisier.
A remisier does not issue contract and commission notes in their clients’ names, nor does it play any part in facilitating trades, unlike an authorised person (formerly known as sub-brokers). In contrast to a financial consultant, a remisier won’t provide financial guidance on investing, taxation, savings, portfolio diversification, or other risk management techniques.
Anyone who wants to increase their income should think about becoming a remisier. Besides being able to persuade and use social media to attract new clients, there are no prerequisites to operate as a remisier. At the absolute least, your contacts must be financially capable of considering stock market investments. Of course, interest in investing can be fostered. In the same way that people become social media influencers to earn money (or things) from the brands they promote, more and more people are taking up remising since it offers a source of additional revenue. No rule says you can’t use influencer marketing and social media to attract clients; a remisier is just an offline influencer.
A sub-broker is an individual who performs broker-like duties but acts as a go-between for the principal broker and the client. A sub-broker acts as a middleman between the stockbroker and the investor, whereas a stock broker acts as a go-between for an investor and the stock exchange.
A sub-broker’s duties include helping the customer with numerous tasks, including paperwork and financial transactions, and mediating disputes between the broker and client. The sub-broker brings clients to the brokerage firm as part of their job description as an employee of a stockbroker. The sub-broker helps customers with securities transactions and investing.
A specific commission from client transactions is what the sub-brokers receive in exchange for the services provided to the brokers. Being a sub-broker has various benefits. You can benefit from an established infrastructure and support system supplied by the authorised stockbroker or brokerage firm you are affiliated with. This saves you the expense and time of establishing your infrastructure.
You can access research and analytical tools, such as market reports and financial analysis, to help you make investment decisions and provide better client services. Being linked with a reputed stockbroker improves your market credibility and reputation, improving customer confidence and prospective business prospects.
Remisier vs Sub-Broker: Differences
The following are the differences between a remisier and a sub-broker:
- There are distinctions between remisiers and sub-brokers regarding their business and office facilities. Sub-brokers usually need their own office space and other business infrastructure. Certain brokerage firms can require this for sub-brokers to be able to deal with them. A remisier only requires something like that. Second, there are few differences in how remisiers and sub-brokers make money. They both make money by commissions on the sales of their clients’ trades, which they schedule through a stock brokerage.
- The licensing requirements for each of these occupations differ. Previously, registration with the Securities and Exchange Board of India was a prerequisite for becoming a sub-broker, but this has changed. However, there can be requirements for sub-brokers onboarding, depending on the brokerage company. However, before a remisier can start pursuing clients for stock brokerage businesses, they must register with a stock exchange.
- Within the stock brokerage, a sub-broker plays a more comprehensive role. In addition to attracting clients, they must provide all other brokerage services. On behalf of their clients, they actively participate in trading, support them with market research, and generally increase their knowledge. These privileges are not granted to a remisier. This is why a sub-broker’s work is full-time and demands much more time and effort. A remisier’s work is typically part-time, allowing them to manage side ventures.
- The amount that a remisier and a sub-broker make differs significantly, with sub-brokers making more money than remisiers. A sub-broker might receive up to 60% in brokerage sharing because they are more responsible for their client’s needs than a remisier. Conversely, a remisier’s only duty is approaching potential clients for stock brokerage services.
A large broking house is usually the employer of a sub-broker. They can now employ the technologies and tools that the brokerage business uses. They also receive training to boost sales and have access to market research studies. Campaigns for brand marketing also benefit sub-brokers, who utilise them to draw in new clients. The disadvantage is that it requires a substantial investment of time, energy, and research. A qualified person is required to complete a transaction, draw clients in and encourage more assets, and he might even provide extra services. They are responsible for discovering, keeping, maintaining, and even offering customers post-purchase services as full-time business owners.