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In financial markets, individuals often come across terms like sub-broker and remisier, both playing significant roles within the brokerage landscape. While they share similarities, it’s crucial to understand the distinctions between a sub-broker and a remisier. These distinctions become instrumental in comprehending the dynamics of brokerage services and the relationships these professionals maintain with brokerage firms and clients. Let’s delve into the nuances that set a sub-broker and a remisier apart, shedding light on their respective roles and responsibilities.
Table of Contents
Meaning of Sub-Broker and Remisier
Before looking at the differences, let’s understand the meaning of sub-broker and remisier.
- A sub-broker is a representative of a brokerage firm who acts as an agent. They can be compared to an extension branch of a stockbroker. They execute trades on behalf of clients and receive a certain commission on the brokerage generated by those clients.
- A remisier is a representative of the brokerage firm that secures customers. However, a remisier works independently to find new clients for the broker. Additionally, the remisier needs to register with the stock exchange. The duties associated with this profile are considerably simpler. He receives a fixed proportion of commission for each transaction he or she handles. In addition, a remisier may also serve as an agent of the brokerage firm. In India, there are several variables that affect the remisier commission: the broker with whom they are registered, number of referrals they have, number of the referrals that are trading actively
Difference Between Sub-Broker and Remisier
Let’s now understand the difference between sub-broker and remisier on the basis of different parameters.
Roles and Responsibilities
- A sub-broker’s primary job is to serve the stockbroker by expanding its client base. It carries out all of the duties associated with running a brokerage firm. This includes bringing in new clients and resolving their issues whenever required.
- On the other hand, the sole responsibility of a remisier is customer acquisition. The stockbroker is responsible for all the other duties.
Office Space
- Since a sub-broker handles practically all stock broker duties, they need to set up an office. The sub-broker agreement specifies the space necessary for the office setup. It ought to be in a good location in an area.
- A remisier can work without access to an office. They can also work under the stockbroker’s roof. Additionally, they can have customer meetings in the same office.
Registration and Licencing
- A sub-broker has to obtain a license from the Securities and Exchange Board of India (SEBI) and adhere to its rules.
- A person needs to register with the stock exchange and the broker in order to become a Remisier.
Income and Commissions
- The amount of deals that remisiers produce for the broker determines the commission that they receive in most cases. Additionally, the broker pays them a salary.
- Sub-brokers do not normally get a salary, they do receive a commission on the deals they facilitate for the primary broker.
Client Relationship
- Remisiers have direct interaction with clients because they work for the principal broker and have clients in their portfolio.
- Due to their role as intermediaries for clients and brokers, sub-brokers do not directly connect with their clients. They only approach a client as per the instructions of their brokers.
Principal Broker Relationship
- Remisiers serve as agents of the principal broker. So, they have a direct relationship with their brokers.
- Sub-brokers, on the other hand, work under a contract with the principal broker and are not directly under their direction.
Sub-Broker Vs Remisier: A Summary
Here is a table summarising the key difference between sub-broker and remisier.
| POINTER | SUB-BROKER | REMISIER |
| Roles and Responsibilities | Sub-brokers are responsible for all types of work from customer acquisition to execution of transactions. | A remisier mostly focuses on acquiring new clients for the broker. |
| Business Infrastructure | Brokerage companies often ask sub-brokers to have an office space if they want to work with them. | A remisier has no obligation to have their own corporate infrastructure because they operate as independent contractors. |
| Job Types | Being a sub-broker requires full-time work because the individual must actively contribute to assist his clients. He or she must share market research data with clients regularly. | Remisiers are solely responsible for bringing in new clients for the broker. So they can work on a part-time basis. |
| Licence Regulations | To obtain a license, a sub-broker must register with SEBI (Securities and Exchange Board of India). | To obtain a licence, a remisier must register with a stock exchange. |
Remisier Vs Sub-Broker: Job Comparison
- A sub-broker frequently works under a large broking house.This gives them access to the tools and technologies the brokerage firm uses. Additionally, they have access to market research studies and receive training to increase sales.
- Sub-brokers profit from brand marketing campaigns as well and use them to attract new customers.
- The drawback is that it needs a significant amount of time, effort, and research. It takes a qualified individual to carry out a transaction, and he may even offer other services to attract clients for making additional investments. As full-time business owners, they are in charge of finding, retaining, managing, and even providing post-purchase services to customers.
The business models for remisier and sub-brokers differ. So, which one fits you best? You’ll need to consider your career ambitions in order to respond to the query. A trusted financial firm like Share India can help you in this regard.
Conclusion
Understanding the distinctions between a sub-broker and a remisier is crucial for individuals considering a career in the financial markets. While a sub-broker has a broader scope of responsibilities, managing various tasks related to customer acquisition and transaction execution, a remisier primarily focuses on acquiring new clients for the broker. The choice between the two roles depends on factors such as one’s preference for business infrastructure, commitment level, and licensing requirements. Both roles offer unique opportunities and can be preferable based on individual career aspirations and working preferences.