How Do Angel Broking Franchise Works?

By Startup Authority September 19

Angel Broking Angel One is an Indian stockbroking company that was established back in the year 1996. Angel One has built a reputation for its quality financial services and is also a proud member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange India and Multi Commodity Exchange of India Limited.

Angel One allows interested brokers to be a part of their company by taking its franchise. The official website of the company is the only source for applying for the franchise. There is a refundable amount that needs to be submitted to the company.

Simply saying that being a sub-broker you will be responsible for recruiting clients under you and regulate their business, based on which your brokerage will be generated.

How To Get Angel Broking Franchise?

Angel One franchise can be applied for only through their official website where they have got a separate section for it. Interested people would have to submit an application form for it which will be available on the website itself.

The form will require you to fill in with some basic details which you need to enter carefully and correctly and once done you will be receiving a call back from the concerned authorities.

Now, there is another type of franchise which can be taken under your partnership firm with the company. This is not like being a sub broker with the company but it is rather bigger than that. The document required for this kind of franchise would be much more than getting an individual broking franchise from the company.

Once done with all the initial process then you will be having the agreement with the company. Once you have submitted all the required documents to the representative of the company then you will be receiving an agreement from your representative within a few days.

There is also a security deposit ranging from INR 50000 to INR 1 lakh which could be either paid through online transfer or via stocks.

Angel Broking Franchise Business Model

Now, there are two kinds of franchise that you can opt for while taking a franchise of Angel One. If you want to be an individual broker for the company then you can do that or if you want to start a partnership firm or your private limited company then you can do that as well.

Now, if you have applied to be a sub broker for Angel One then your primary work will be to recruit clients under you and you will regulate their business based on which your brokerage will be decided.

The other franchise model is starting a firm. In this type of model you will be responsible for multiple trading applications and finance related services.

Some of the services include stock broking, depository services, commodity trading and investment advisory services, personal loans and insurance, portfolio management services, IPOs business and mutual funds distribution.

Based on the services your franchise is able to offer to the number of clients you will be receiving the commission. The commission will depend on how much security deposit you have kept with the stock brokerage house. However, the minimum revenue share that you can expect is around 50% while the highest can be up to 70%.

Revenue Model For Franchise Buyers

As mentioned earlier, it depends on how much deposit you are keeping with the stock brokerage house. For instance if the security amount is inR 50,000 then you will be entitled to a 50% commission. However, the maximum commission can go above 70% which is only possible if your security deposit is INR 1 lakh.

You need to carefully go through the agreement properly regarding the revenue model for its franchise. In case there could be certain changes made which you should know about.

When talking about sub brokers then there are two things that will determine the amount he earns. The first one is the amount in percentage shared by the broker and the second one is the number of clients he or she can attract. In other words, the income earned by the broker will depend directly on his or her abilities.

Therefore, it all depends on the number of clients that your franchise is able to attract. It is also important to provide your best services to them so that you can build a good reputation among your clients.

Angel Broking Franchise Cost

The franchise cost would depend on the type of franchise that you wish to take. In Case you are taking an individual partnership or rather say the sub broker then you can work from home only without requiring any kind of separate infrastructure for it.

You would have to just pay the security deposit amount which is fully refundable. However, on the other hand, in case you want to set up a firm then you would have to pay the security deposit and there are some charges that you would have to incur. These are the registration charges and they are as the following categories.

NSE
BSE
NSE Cash
NSE Currency
NSE Commodity

You can register for these segments and the total registration cost would be around INR 11,800 for five segments. Apart from this if you have got a good location where you can set up a business office then you can invest a few lakhs for the infrastructure set up as well. All in all the franchise should be well set up with a minimum investment of at least INR 10 lakhs.

Other Investment Details

Other investments include the registration charges for the five segments that you need to do before. It is important that you register for all the five segments so that it only becomes easy for you to provide all the necessary financial services to your clients. This is also because of showing that your business is legit and is legal for conducting such kinds of financial business.

You can contact the company representative for any kind of other charges that you would have to pay. Also it would also be a wise option to read the agreement details carefully for the franchise that you are opting for.

Is Angel Broking Franchise Profitable?

Angel One is one of the most reputed finance service companies in India. The company has built trust and has built a good reputation with its clients all over the years in its business career. If you start its franchise then people will have a feeling of trust in your franchise which is why it could be a profitable business option in India.

However, if you have got a lot of business connections and as well as informal connections then you can earn a good amount of profits by taking the Angel One franchise.

Conclusion

In the end, what matters the most is building trust and offering the best services to the clients. Even if you do not have many clients you can still be able to build a good reputation for yourself and your business which will be beneficial for your business to attract clients without any marketing or advertising efforts.

Therefore, it will be justified to say that taking an Angel One franchise is profitable but it is also important to take care of your clients’ best interests.