InvestorQ : When I deal with a sub-broker, do I have to pay extra over and above what I pay as brokerage? How do I go about selecting my sub broker?
Dawn Cherian made post

When I deal with a sub-broker, do I have to pay extra over and above what I pay as brokerage? How do I go about selecting my sub broker?

Answer
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Dilmini Mercia answered.
1 year ago


First and foremost, there is nothing additional payable to the sub broker because your total brokerage is fixed by the broker and the sub broker commission is shared between the broker and the sub broker. You as an investor are in no way concerned with that. Therefore, the amount payable by you is the normal brokerage that you have agreed in your initial agreement. The broker will pay a part of the brokerage directly to the sub-broker as per their sharing arrangement. You as a customer do not need to pay anything directly to the sub-broker.

Let us move to what are the factors that you need to consider when selecting the broker or sub-broker to trade with? Firstly, check that your broker / sub-broker are registered with SEBI and his SEBI registration number is clearly displayed in the office. Secondly, check out the quality of research that the broker provides. Most brokers provide trading and investment ideas to their clients based on their own in-house research. This is important for you to invest methodically and smartly.