IFCI Sub Broker is a very new entrant in the broking franchise business. The company has developed strong network of sub brokers and franchise partners who have helped it spread its presence nationwide. IFCI Financial relies a lot on such sub broker network and hence provides some good support and boost to their business in return.
In this article, we have discussed about the franchise models available at IFCI Financial, the revenue sharing ratio, the deposit amount, the support provided by IFCI Financial etc.
IFCI is an undertaking of Indian Government and its subsidiary IFCI Financial Services Limited i.e. IFCI Financial is engaged into broking business. IT was set up in 1959 by IFCI Limited. It provides stock broking, commodity broking, investment banking, mutual fund distribution and many other services falling under the capital market.
IFCI Financial Franchise Customer Ratings
|IFCI FInancial Franchise|
|Revenue Sharing Model||2.2/5|
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Types of IFCI Sub Broker/ Authorised Person
IFCI Financial currently has only one business model which is the basic and the most opted model i.e sub broker or authorized person. Lets learn in details about this model and the associated returns and investments.
Become an IFCI Authorized Person – Just Fill up the form
IFCI Financial Sub broker/ Authorised person
The criteria for appointing sub brokers, the deposit, the investment amount and the revenue sharing model etc. are quite lenient with IFCI Financial.
An IFCI sub Broker will have to have some basic knowledge about trading and business and also a good social profile will be helpful to the Authorised person. The sub broker will have to rent or own an office space backed up by computer and phones and broadband.
The revenue sharing ratio ranges between 50% to 70% depending upon various parameters. The same is discussed in the next para.
IFCI Authorised Person or Sub Broker Commission or Revenue Sharing Model
IFCI Financial’s revenue sharing ratio is more or less in line with that of the industry. The ratio starts from 50% and can go upto 70% The ratio is negotiable and will change in case to case.
There are no defined slab rates for such ratios as there are also dependent on number of qualitative factors. Few of such parameters are the quality of the client base, the market credibility, the quality of services provided to the customers etc.
The quantitative parameters include the amount of deposit made, the revenue contributed, the city in which sub broker is based etc. Hence, it is advised that the sub broker should appropriately evaluate all such parameters and negotiate the revenue sharing ratio accordingly.
|Business model||IFCI Financial Commission||Sub Broker Commission|
|Sub broker/ Authorised partner||30% – 50%||50% – 70%|
Check Revenue Sharing Models of other Stock Broking Franchise
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|ICICI Direct Sub Broker||IIFL Sub Broker||SMC Sub Broker|
|Nirmal Bang Sub Broker||Sushil Finance Sub Broker||Profitmart Sub Broker|
IFCI Franchise Cost or Security Deposit Amount
IFCI Financial requires a sub broker to pay a deposit of INR 50,000 to INR 2 lacs depending upon factors like the city of operation, the revenue base, the revenue ratio agreed etc.
The deposit amount may increase as the revenue base increases. This deposit is generally held by the broking companies as a security to cover up defaults, if any, that the sub broker commits. Also, this deposit is generally refunded to the sub broker when the sub broker exits from the arrangement or terminates the agreement.
Apart from such deposit, the sub broker will also be required to make some investment in the infrastructure like office set up, work stations, internet, resources etc.
|Business model||IFCI Financial Deposit required|
|Sub broker/ Authorised person||Rs. 50,000 onwards|
Check Security Deposit requirements of other Sub Broker Franchise
|Prabhudas Lilladher Sub Broker||IDBI Direct Sub Broker||Swastika Investment Sub Broker|
|Motilal Oswal Sub Broker||Ventura Securities Sub Broker||SKI Capital Sub Broker|
|Sykes & Ray Sub Broker||Geojit Finance Sub Broker||Zerodha Sub Broker|
IFCI Financial Franchise or Sub Broker Offer
IFCI Financial is running the following offers currently for its sub broker programe:
- Customised brokerage plans for sub broker customers
- Investment advisory services for a limited period to sub broker customers
- Low investment cost
- Flexible revenue sharing ratio
- Free set of trading terminals
How to become IFCI Sub Broker?
Step 1 – Fill in the details in the form available here.
Step 2 – Our representative will call you to confirm the details and to confirm your interest in the opportunity.
Step 3 – IFCI Financial representative will connect with you and fix up a meeting to discuss the proposal.
Step 4 – You will meet the IFCI Sub Broker team and discuss the arrangement with them in detail. You should ensure that all the aspects like revenue ratio, investment amount, deposit amount, break even period, support offered etc., are discussed appropriately and agreed upon.
Step 5 – Provide your documents to IFCI Franchise Team and pay the deposit amount. IFCI Financial will also confirm with you if you have been registered as an AP with stock exchange in the required segment. In case you are not registered, then you may pay the registration fee to IFCI Financial and they will get you registered.
Step 6 – IFCI Financial team will verify the documents.
Step 7 – After verification, IFCI Authorized Person team will share the agreement with you which will cover all the details of sub broker arrangement. Read the same carefully and sign it.
Step 8 – IFCI Financial will undertake the process of registering you with stock exchange as an AP (if not already done by you) and you can then start functioning as a sub broker/AP.
The procedure gets completed in almost 7-10 days.
Documents Required for IFCI Financial Partner Registration
- Copy of PAN card and Aadhar Card
- 2 Passport size photos
- Ration card copy
- Proof of date of birth
- Stock exchange registration certificate
- Copy of marksheet and passing certificates
- Receipt of payment of security deposit
Understand the Documents Requirement of other Sub Brokers
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|Religare Securities Sub Broker||Edelweiss Sub Broker||Karvy Sub Broker|
|Arihant Capital Sub Broker||Alice Blue Sub Broker||Narnolia Sub Broker|
|Anand Rathi Sub Broker||Just Trade Sub Broker|
Why Partner with IFCI Financial?
- It is a government owned entity and hence can be trusted
- Has a good brand name
- Provides flexible revenue sharing model
- Has good trading softwares and analytical tools
- Offers various services to the customers.
Support provided by IFCI Financial Partner Program
- Provides marketing support by assisting in client acquisition
- Helps in training the resources and the customers
- Offers technical certifications
- Conducts workshops for customers to guide on the trade strategy
- Also provides assistance in setting up infrastructure
Start your business with IFCI Sub Broker – Just Fill up the form
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