How To Choose the Right Authorised Partner Franchise?
Written by Subhasish Mandal
Published on January 06, 2026 | 2 min read
Stock broking can be a rewarding industry, but not everyone can start a stock broking business as it requires high capital requirements and a long registration process. Individuals who do not have access to such resources can still enjoy the benefits of being a stockbroker. You might be wondering, how is that possible? It’s possible by becoming an Authorised Partner in an existing broking firm.
Who is an Authorised Partner?
An Authorised Partner (AP) is an individual or an entity that acts as a service agent of the stock brokerage houses. The primary purpose of an AP is to attract new clients to a broking firm and guide them to trade or invest in the market. In return, they receive commission based on the brokerage generated by the acquired clients.
How an Authorised Partner Franchise Business Works?
An Authorised Partner Franchise Business operates as an extension of well-established broking firms, where individuals or entities promote trading activities, onboard new clients, and provide guidance to investors. These franchise businesses earn commissions from the brokerage generated, creating an organised, scalable and low-capital business opportunity.
Key Factors to Choose an Authorised Partner Franchise
Below are a few points to check before choosing an Authorised Partner Franchise
Brand Name of Broker
The AP business enjoys the benefit of the brand name built by the broker. If the broker had a good reputation in the industry, then it’s easy for AP to gain trust and acquire new clients. Before partnering with the broker, research the broker's reputation, read customer reviews and ratings.
Range of Products
Get all information about the products offered by the brokers. A variety of products in a single platform helps APs to target a large customer base and sell products according to customer preferences.
Revenue Sharing Model
Authorised partners' revenue comes from the brokerage generated from the acquired clients. Make sure the broker is providing a favourable revenue-sharing model. It will impact the profitability of the AP business in the long run.
Security Deposits
Check whether any mandatory security deposits are required or not? Usually, prominent brokers ask for a nominal deposit to AP as a procedure for registration. However, if the deposits are high, the AP must compare the cost with other brokers to get the best deal.
Regulatory Compliance
Ensure that the broking firm is registered with the Securities and Exchange Board of India (SEBI) and complies with all relevant regulations. Check their compliance record to avoid potential legal issues.
Training
Check with the broker whether any online or offline training is scheduled time to time or not? It helps APs to be updated with the latest developments and upcoming product offerings.
Goals
Every AP had its own goals, check whether this business opportunity meets AP’s income needs, time commitment and long-term objectives.
When trying to start an Authorised Partner business, choosing the right broker franchise is important to keep running the business in the long term. AP must put in efforts to compare the services of different brokers and choose one which is suitable for customers, as well as aligns with personal goals.
About Author
Subhasish Mandal
Sub-Editor
finance professional with strong expertise in stock market and personal finance writing, he excels at breaking down complex financial concepts into simple, actionable insights. Holding a Master’s degree in Commerce, he combines academic depth with practical knowledge of technical analysis and derivatives.
Read more from Subhasish
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
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