5Paisa Franchise is a well-known name in the financial sector, recognized for its services in the stockbroking industry. Established in 2007, the company operates as a public discount broker and offers various partnership models, such as the Referral Program and the flexible Partner / Remisier Model.
It’s earned its reputation as the 6th largest broker in India, providing traders and investors with a user-friendly trading platform and cost-effective solutions.
With a focus on transparency and efficiency, 5Paisa is a sought-after choice for those looking to engage in the world of finance.
What Do You Know About 5Paisa Franchise?
5Paisa, a prominent name in the financial industry, operates as a public company, listed on the stock exchange. It functions as a discount broker, offering cost-effective trading solutions.
The company’s headquarters are situated in Thane, India, and it was founded by Prakarsh Gagdani in 2007. For those interested in the Sub Broker Program, the activation time for the SB code is approximately 14 days, while the payout time, when partners receive their earnings, typically takes 31 days.
This information provides a concise overview of 5Paisa’s key details and operations.
| Aspect | Details |
| Type of Company | Public / Private: Public |
| Broker Type | Discount Broker |
| Headquarter Location | Thane, India |
| Founder | Prakarsh Gagdani |
| Year of Establishment | 2007 |
| SB Code Activation Time | 14 Days |
| Payout Time | 31 Days |
What Are the Various Business Models That 5Paisa Sub Broker Program Provides?
The 5Paisa Sub Broker Program offers a diverse range of business models to cater to the varying needs and aspirations of potential partners.
Aspiring entrepreneurs and individuals seeking to collaborate with 5Paisa can choose from different partnership models, each tailored to specific preferences and objectives.
- Referral Program: The referral program is indeed available, enabling individuals to participate in this model, where they can refer clients and earn through the referral program.
- Partner / Remisier Model: The Partner / Remisier Model, a feature within the 5Paisa Sub Broker Program, offers a flexible and independent avenue for partners. This model appeals to individuals seeking a more personalized and adaptable approach to conducting their business. It allows partners to operate with a degree of autonomy, making it an attractive choice for those who value flexibility in their business operations and wish to tailor their strategies to better align with their unique entrepreneurial goals and client base.
| Business Model | Availability |
| Sub Broker | No |
| Referral Program | Yes |
| Master Franchise Model | No |
| Partner / Remisier Model | Yes |
How Does 5Paisa Sub Broker Revenue Sharing Work?
The revenue-sharing structure for 5Paisa’s Sub Broker Program is a key element that determines how partners earn from their business activities.
5Paisa’s Sub Broker Revenue Sharing program is designed to reward partners for their efforts in expanding the platform’s client base and promoting trading activities. It offers partners the opportunity to earn a percentage of the brokerage generated by their referred clients, making it a mutually beneficial arrangement.
The Referral Program offers a direct and transparent compensation structure. Partners in this model receive a fixed 10% from the trading activities of clients they refer, ensuring a clear and immediate benefit from their referrals.
On the other hand, the Partner / Remisier Model introduces flexibility, as partners can earn between 10% to 30% of the generated revenue. This model allows partners to enjoy variable income potential, offering incentives for their performance and engagement.
| Aspect | Details |
| Revenue Sharing for Sub Broker Program | NA (Not Applicable) |
| Revenue Sharing or Direct Pay for Referral Program | 10% |
| Revenue Sharing for Master Franchise Business | NA (Not Applicable) |
| Revenue Sharing for Partner / Remisier Model | 10% – 30% |
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What Is The 5Paisa Business Partner Security Deposit Requirement?
The 5Paisa Business Partner Security Deposit Requirement refers to the financial commitment that partners are expected to make when participating in specific models of the 5Paisa Sub Broker Program.
This deposit is essentially a form of collateral or assurance that partners provide to the brokerage firm. It serves to ensure that partners are genuinely interested and committed to the business partnership. The deposit amount varies depending on the business model within the program and is meant to align with the partner’s level of involvement and responsibility.
For partners engaging in the Referral Program, the security deposit requirement is set at Rs. 200. This indicates that partners referring clients to 5Paisa and participating in the referral program are required to maintain a deposit of this amount as a part of their commitment to the program.
In the Partner / Remisier Model, partners who opt for this more involved and flexible approach to business are expected to provide a higher deposit. The deposit requirement for this model is Rs. 10,000.
| Aspect | Details |
| Security Deposit for Sub Broker Program | NA (Not Applicable) |
| Security Deposit for Referral Program | Rs.200 |
| Initial Investment for Master Franchise Model | NA (Not Applicable) |
| Deposit Required for Partner / Remisier Model | Rs.10,000 |
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What Are the Various Offers Rolled Out By 5Paisa Authorised Person Program?
The 5Paisa Authorised Person Program provides an array of offers, each catering to different aspects of a partner’s journey. The Flexible Revenue Sharing Offer is a standout feature, allowing partners to earn rewards based on their performance and the trading activities of their referred clients.
This flexible structure empowers partners to actively boost their earnings by proactively engaging in client acquisition and trading promotion.
Conversely, the program does not employ a Flat Revenue Sharing Offer, emphasizing a variable, performance-driven approach rather than a fixed percentage.
Similarly, the Zero Revenue Sharing Model with Prepaid Payment isn’t a part of the program, as partners receive a share of the brokerage generated by their clients’ trading activities through the standard revenue-sharing structure.
While the program lacks a Zero Deposit Scheme, it introduces a 10k Initial Deposit Scheme, enabling partners to commence their journey with a reasonable deposit.
This initiative aims to equip partners with the necessary resources and support to effectively kickstart their business activities.
| Aspect | Details |
| Flexible Revenue Sharing Offer | Yes |
| Flat Revenue Sharing Offer | No |
| Zero Revenue Sharing Model with Prepaid Payment | No |
| Zero Deposit Scheme | No |
| 10k Initial Deposit Scheme | Yes |
5Paisa’s support structure for partners exhibits a mixed approach. While dedicated Acquisition Training for Associates and Training for Dealers of Sub Brokers are notably absent, indicating potential self-reliance or independent training needs, Product Training for Business Partners is also not explicitly provided.
In contrast, Back-Office Support for Authorized Persons is available, streamlining administrative tasks.
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What Are the Various Supports Provided To 5Paisa Business Partners?
However, areas like Trading Support, Advisory Support, and Marketing Support for Sub Brokers are not evidently integrated. This highlights partners’ self-reliance in those domains.
Overall, the program offers necessary back-office support, and provides operational efficiency, but it places the onus on partners to explore, source, and manage additional support in areas where it isn’t explicitly offered.
| Support Aspect | Details |
| Acquisition Training for Associates | No |
| Training for Dealers of Sub Brokers | No |
| Product Training for Business Partners | No |
| Back-Office Support for Authorized Persons | Yes |
| Trading Support for Business Partners | No |
| Advisory Support for Partners | No |
| Marketing Support for Sub Brokers | No |
Which Is the Infrastructure Required For the 5Paisa Sub Broker Program?
In the 5Paisa Sub Broker Program, partners enjoy a streamlined infrastructure setup. Notably, there are no specific requirements for employee strength, allowing partners to structure their teams as they see fit.
While trading terminals are mandatory, ensuring partners have access to the necessary technology for efficient trade management, there’s no obligation for a dedicated internet connection, affording partners the flexibility to choose their preferred connectivity method.
Additionally, there are no mandatory telephone lines or research service provisions, empowering partners to tailor their communication and services to their clients’ unique needs.
The absence of a predefined office area size requirement gives partners the freedom to operate from spaces that best suit their preferences and efficiency.
| Aspect | Details |
| Employee Strength Required to Start | Not Required |
| Provision of Trading Terminals | Yes |
| Mandatory Internet Connection | No |
| Mandatory Telephone Lines | No |
| Mandatory Research Services by Sub Broker | No |
| Office Area Size Required to Become a Sub Broker | Not Required |
Find out the basic requirements of other Stock Broking Franchise
What Are the Eligibility Criteria to Become 5Paisa Partner?
To become a 5Paisa partner, certain eligibility criteria must be met to ensure a strong foundation for success in the financial industry. These criteria are as follows:
Educational Qualifications: Prospective partners should have completed their 10+2 education from a recognized school in India. This educational background serves as a fundamental knowledge base for understanding financial markets and effectively communicating with clients
Financial Market Knowledge: A deep understanding of the stock market, economic conditions, and the broader business environment is crucial. This knowledge enables partners to convey correct information to clients and provide sound financial guidance.
Relevant Experience: Experience in the financial industry is a vital requirement. Partners must have spent several years in roles such as broker, sub-broker, agent, authorized person, investor, or trader. This industry experience builds client trust and enhances the ability to offer informed advice.
NISM Certifications: Dealers and Authorized Persons must hold NISM certifications. These certifications are earned by completing the relevant certification program and passing associated exams. They ensure partners have the necessary regulatory knowledge and expertise.
Additionally, partners need to provide necessary documents, including AADHAAR and PAN cards, voter ID, address proof, evidence of industry experience, educational certificates, as well as certificates from regulatory bodies like SEBI and NISM.
What Are the Brokerage Charges Levied on The Clients Of 5Paisa Partners?
The brokerage charges applied to clients of 5Paisa partners play a significant role in understanding the cost structure of trading on this platform. 5Paisa offers a simplified and cost-effective fee schedule, making it attractive to traders and investors.
For equity intraday and delivery, clients are charged a flat rate of Rs. 10 per executed order, regardless of the trade’s size. This straightforward pricing model ensures that clients do not need to calculate complex percentages or fees based on their trading volumes.
Equity and currency options, as well as futures trading, are also charged at a flat rate of Rs. 10 per lot or executed order, adding to the platform’s transparency and predictability.
Notably, there are no specific charges for commodity trading, making it a cost-effective choice for those interested in this asset class.
This fee structure enhances the appeal of 5Paisa for clients and partners alike, and provides transparency and affordability in trading.
| Aspect | Details |
| Equity Intraday charges | Rs. 10 |
| Equity Delivery charges | Rs. 10 |
| Equity Options charges | Rs. 10 / lot |
| Currency Options charges | Rs. 10 / lot |
| Equity Futures charges | Rs. 10 |
| Currency Futures charges | Rs. 10 |
| Commodity Trading charges | NA |
What Are the Account Opening Charges Levied to The Clients Of the 5Paisa Sub Broker?
The account opening charges for clients of 5Paisa Sub Brokers consist of several components. First and foremost, clients are required to pay an initial fee of Rs. 650 to open their accounts.
This fee covers the setup and activation of both trading and demat accounts, making it a necessary upfront cost for clients.
One notable advantage for clients is the absence of any margin money requirement. This means that clients do not need to maintain a specific amount of capital in their accounts. It enhances accessibility for a broader range of investors and traders.
However, clients should be aware of the Demat Annual Maintenance Charges (AMC), which amount to Rs. 400 per annum.
These charges are applied for the maintenance and management of their demat accounts, ensuring their smooth operation throughout the year.
In contrast, trading accounts do not incur annual maintenance charges, providing a cost-effective solution for clients. Finally, clients are subject to transaction charges of Rs. 10 per order, reflecting the costs associated with executing their trading activities.
Overall, these charges collectively define the cost structure for clients opening accounts with 5Paisa Sub Brokers.
| Aspect | Details |
| Account Opening Charges | Rs.650 |
| Margin Money Required | Zero |
| Demat Annual Maintenance Charges (AMC) | Rs.400 er Annum |
| Trading Annual Maintenance Charges (AMC) | Zero |
| Transaction Charges | Rs. 10 per Order |
How To Become A 5Paisa Partner or Sub Broker?
Becoming a 5Paisa partner or Sub Broker is a straightforward process that involves several key steps:
- Provide Your Details: To initiate the journey, start by filling in your details in the lead form on the 5Paisa website.
- Verification: After expressing your interest, you’ll receive a call from the 5Paisa Call Centre to verify your intentions and qualifications.
- Appointment: Once your interest is confirmed, schedule an appointment with a Sales Representative when they reach out to you.
- Information Gathering: During your meeting with the Sales Representative, you will receive comprehensive information about the partnership, its benefits, and requirements.
- Document Submission: Following the meeting, gather and submit all necessary documents required for verification.
- Document Verification: The submitted documents will undergo a thorough verification process.
- Account ID: After successful verification, you will be provided with an account ID, marking the completion of the procedure, which takes around 3-5 days.
Documents Required to Become 5Paisa Partner
Documents necessary for 5Paisa partner registration include:
- Two recent passport-sized photographs.
- A canceled bank cheque.
- A rent agreement for the office space.
- Your Aadhar card.
- PAN card.
- An address proof document.
These documents are necessary for the registration process and to establish your identity and credentials as a 5Paisa partner.
Why Partner With 5Paisa?
Partnering with 5Paisa offers several advantages:
- Low Brokerage Charges: 5Paisa’s exceptionally low brokerage charges attract high-volume traders, expanding your business potential.
- Transparent Flat Brokerage: The flat brokerage sharing model ensures transparency and straightforward dealings with partners. It fosters trust and ease of operation.
- Comprehensive Back Office Software: Partners benefit from detailed back office software, simplifying operations and enhancing efficiency.
- Fast Acquisition Process: The rapid client acquisition process is a win-win for both partners and clients. It ensures a seamless onboarding experience.
- Smooth Trading Platform: 5Paisa provides a user-friendly trading platform, offering partners and clients a hassle-free trading experience.
- Low Investment: With an incredibly low investment requirement of just Rs. 5,000, 5Paisa presents an attractive proposition for potential partners, reducing financial barriers to entry.
5Paisa Franchise – Pros & Cons
Before considering a partnership with 5Paisa, it’s crucial to weigh the advantages and drawbacks:
Pros:
- Reputation: 5Paisa ranks as the 6th largest broker in India. It ensures partners associate with a highly reputable and well-known stockbroking firm.
- Efficiency: With a fully digital setup, partners can benefit from efficient and convenient working conditions, streamlining their operations.
- Online Setup: The initial setup for 5Paisa sub-brokers is entirely online, simplifying the onboarding process
- Income Opportunities: 5Paisa offers a wide array of income generation sources. It has a flexible revenue-sharing model that allows partners to increase their share as they gain experience.
- Lower Initial Investment: The sub-broker program at 5Paisa features a lower initial investment requirement, reducing financial barriers for partners.
Cons:
- Brokerage Sharing Cap: The brokerage sharing percentage cap at 50%, limiting potential earnings.
- No Master Franchise Option: 5Paisa does not offer a Master Franchise option. It restricts the ability to open an independent office under their brand.
5Paise Franchise Registration
Becoming a 5Paisa sub-broker is a straightforward process. Here’s a step-by-step overview:
- Initial Registration: Start by filling out the necessary details in the lead form on the 5Paisa website. This will express your interest in becoming a partner.
- Confirmation Call: Shortly after your initial registration, you’ll receive a call from the 5Paisa Call Center. Answer the call and confirm your intention to proceed.
- Guidance from Sales Representative: A dedicated Sales Representative will reach out to you to provide a detail explanation of the process, responsibilities, requirements, and potential benefits.
- Document Submission: To formalize your partnership, you’ll be required to submit necessary documents for verification to ensure with regulatory and company requirements.
- Account ID Issuance: Once your documents are successfully verified, and all prerequisites are met, 5Paisa will provide you with an Account ID, enabling you to begin your journey as a sub-broker. This process takes 3 to 5 working days, making it a swift and easy path to partnership with 5Paisa.
Earning The Potential of A 5Paisa Partner / ROI
A 5Paisa Business Partner enjoys diverse avenues for earning and an attractive return on investment (ROI). Their potential earnings are significant, contingent on their dedication and effective strategies. Sub-brokers earn through client referrals and bring income when new clients register.
Furthermore, they benefit from lifelong income derived from client trades and brokerage fees. Referrals yield between Rs. 300 to Rs. 800 for each new client, and trade-related income ranges from 30% to 50% of the revenue. This portion allocates to the sub-broker while the remainder is share with 5Paisa.
This multipronged approach offers good ROI for 5Paisa partners.
5Paisa Authorised Person – Products Offered
In the ever-expanding financial landscape of India, accessibility and variety are paramount. 5Paisa recognizes this and equips its authorized persons. It has a diverse array of products and services to cater to their clients’ needs.
These offerings encompass a wide spectrum, including equities, options, futures, currencies, commodities, mutual funds, and insurance products.
Additionally, 5Paisa provides valuable services like research, robo-advisory, stock recommendations, margin trading, and more.
This comprehensive product portfolio ensures that 5Paisa’s authorized persons can offer a good financial experience to their clients. It covers various investment avenues and financial services.
5Paisa Franchise Conclusion
5Paisa is a public discount broker establish in 2007 by Prakarsh Gagdani. It boasts a strong reputation as the 6th largest broker in India.
The Sub Broker Program typically takes around 14 days for SB code activation, and payouts process within 31 days. It offers a variety of business models, including a Referral Program. It has a fixed 10% commission and a flexible 10% to 30% revenue-sharing model for the Partner / Remisier Model.
Becoming a partner requires a minimum educational qualification of 10+2, deep financial market knowledge, good experience, and NISM certifications.
Partners earn through client referrals and client trading activities. The 5Paisa Authorised Person Program provides a wide range of products. It includes equities, options, futures, currencies, commodities, mutual funds, and insurance products, along with various services.
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