If you have ever explored career options in the stock market, you may have come across the term sub-broker. However, today the term can be confusing because it is no longer officially used by regulators. Despite this, many people still search for it, especially those exploring flexible income opportunities by helping others invest. In simple terms, what was earlier called a sub-broker is now officially known as an Authorised Person (AP).
In order to understand what the modern sub-brokers mean, one needs to trace the evolution of the roles and understand what the current term is.
What was a sub-broker?
Before, a sub-broker was defined as someone who partnered with a registered stockbroker to attract clients and support clients' onboarding and trade-related services. The sub-broker would serve as a contact for investors, helping them open accounts, execute trades, and familiarize them with the basics of the market.
Sub brokers were not members of stock exchanges. Sub brokers worked for a stockbroker and earned money through brokerage based on the number of trades conducted by their clients. This mechanism also proved to be successful for quite a long time and provided opportunities for those who wanted to pursue a career in financial services but did not want to be stockbrokers.
Why the Term Sub Broker Changed
In 2018, SEBI reviewed the market intermediary structure and decided to simplify it. The regulator observed that the work done by sub-brokers and authorised persons was almost the same. Neither category was allowed to handle client money or securities directly, and both operated under stockbrokers.
Due to this overlap, SEBI abolished the sub-broker category and integrated it into one, referred to as Authorised Person (AP). This made it simpler and more consistent for all stock exchanges. So today, if someone says “sub broker,” they are referring to what is officially known as an authorised person.
What Is an Authorised Person?
An Authorised Person works with a registered stockbroker and helps clients access the stock market. The job is not involved with the operations of the exchange but with clients. Authorised persons can operate across multiple market segments, including cash, futures, and options, depending on the broker they are associated with. Similar to the previous sub-broker system, they earn money by means of sharing commissions, which gradually increase as they build up more clientele.
Such a setup is ideal for those who prefer to work alone but still have the benefits of resources, technology, and legal protection provided by a licensed brokerage firm.
How Did Sub Brokers (Now APs) Earn Income?
The commission for this service is paid. When clients trade, a portion of the brokerage fee is given to the authorized person.
The revenue-sharing agreement will depend on the agreement reached with the broker and the level of trading activity of the clients.
The real earning capacity is based on a few factors:
- Number of active clients
- Trading frequency
- Market participation levels
- Ability to maintain long-term client relationships
Over time, as trust builds and client activity grows, income can increase steadily. This makes the role appealing for people looking to start small and scale gradually.
Who Is This Role Suitable For?
Becoming an authorised person does not require you to be a market expert from day one. Many people enter this space while learning along the way. It is commonly explored by:
- Individuals interested in finance and markets
- Professionals looking for side income
- People who prefer remote or flexible work
- Those comfortable interacting with clients
What matters most is consistency, willingness to learn, and choosing the right brokerage partner.
Registration: Then vs Now
Before the year 2018, the procedure for the registration of sub-brokers with the SEBI involved the charges and approvals from the exchange.
Now, the procedure is simpler. The authorized persons register themselves through a stockbroker, and not through SEBI. The stockbroker takes care of most of the formalities with SEBI, making it simpler for new players to enter.
Basic eligibility generally includes:
- Minimum age of 21 years
- At least 10+2 education
- Clean background with no serious financial violations
- Agreement with a registered stockbroker
Since the compliance system is administered by the broker, authorized persons can concentrate more on clients and less on paperwork.
What Does an Authorised Person Actually Do?
The role mainly revolves around client support and relationship management. This includes:
- Helping clients open trading and demat accounts
- Explaining basic investment options
- Assisting with platform usage
- Sharing market updates and learning materials
They do not manage client funds or securities in any direct manner whatsoever. All transactions are handled through the broker’s systems in a safe manner. Over time, many authorized persons have managed to create good local or online social networks without necessarily selling aggressively.
Sub Broker vs Authorised Person: A Simple Comparison
While the names are different, the nature of the work is very similar.
- Sub-brokers were registered directly with SEBI
- Authorised persons register through stockbrokers
- APs have access to more market segments
- The authorised person framework is active and recognised today
This change reflects how the industry has matured and moved toward a more streamlined structure.
The Current Opportunity Landscape
Since the regulatory change, anyone interested in this space should aim to become an authorised person rather than searching for sub-broker registration.
The key decision is choosing the right brokerage partner. What matters most is the training, technology, and support related to the ease of building a business. For new agents, having a company that provides good training and support can make all the difference.
The partner program offered by Choice Connect supports authorised persons with product knowledge, client onboarding and tracking, and client relationship management- even for those new to the role.
Learning and Support are More Valuable than High Commissions
Many new entrants are only concerned with commission percentages. While commissions are significant, support structures are also important, particularly for new entrants. Learning about products, basic knowledge about the market, and dealing with clients will make a huge difference. Access to digital tools and responsive support teams also helps partners stay confident while working with clients.
For example, platforms such as Choice Connect provide a structured approach where authorised persons receive training and ongoing assistance, making it easier to start and manage the role remotely.
Building a Sustainable Practice
Success as an authorised person does not happen overnight. Most people grow gradually by:
- Educating clients consistently
- Staying updated with market trends
- Building trust rather than pushing trades
- Using digital channels to reach clients
This steady approach often leads to better long-term results than quick expansion.
Key Takeaways
- The term sub-broker is no longer officially used
- SEBI replaced it with the Authorised Person framework in 2018
- Authorised persons work under stockbrokers and earn through commissions
- Registration today is simpler and broker-led
- The role suits people seeking flexible, scalable income opportunities
- Training, technology, and support are crucial for beginners
An understanding of the change in this way can remove confusion and enable those who wish to become an intermediary to concentrate on what really matters, which is learning the role and selecting the right partner for long-term growth.
