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Sub Broker

Updated on March 15, 2023

A Sub Broker is a person who acts ‘on behalf’ of a broker. Sub Broker is a vital link between the broker and the customer. A Sub Broker works as an agent of the broker. The Sub Broker helps investors by dealing in different types of securities, helping with documentation, paperwork etc. Sub Broker is not a member of a stock exchange but is just working under the broker for providing various services. Sub Brokers cannot charge a brokerage directly from the clients. They receive commission for the services rendered and also sub brokerage from the stock broker as per the client transactions.

What is the role of a Sub Broker?

Some functions performed by a Sub Broker are:
1. They bring more clients to the broker.
2. They help clients in making investment choices.
3. They provide account opening, documentation and other transactional assistance.