When taking the high road to financial markets and starting your journey to become a finance professional, you will be greeted with the question Broker vs Remisier. Which one should you choose? You can become a stockbroker and buy-sell shares on people’s behalf, or you can go a remisier way where you can light the path for a soul directing towards a stockbroker.
Who is a Broker?
A Broker helps its client by providing a platform where they can invest in equity and commodities. They are registered with SEBI and Stock exchanges like NSE, BSE, and MCX. Stockbrokers are professionals who invest on behalf of clients and manage their portfolios.
Who is Remisier?
The primary purpose of a remisier is to find new clients for a brokerage. As earnings, they receive a proportion of brokerage in commissions. Remisiers must register with a stock exchange to be recruited by brokerage firms.
Are Sub-Broker Also Known as Remisier?
Remisier and Sub Broker, when looked from enough difference, look the same. Both of them are people who bring more clients to the broker and get a commission when their clients make the transaction, but one key feature is that Remisiers are independent contractors and Sub-brokers are more like employees.
There is also a massive difference in commission, nothing is set in stone as it varies from company to company, but most sub-brokers make double if not more of what remisiers make.
Broker Vs Remisier
Brokers and Remisiers are entirely different individuals. One provides stock investing ability to the user, and one connects the users to the right place.
1. Investment
To become a stockbroker, you must make a hefty investment to get registered with the regulatory body and as many exchanges as possible. A broker also needs to invest by offering users a platform for investing and trading.
Remisiers don’t have such heavy capital requirements as they work individually. The only work they have is to bring more people to the stockbroker, and in the world of the internet, everything can be done working from home.
2. Registration
The registration process for a Stockbroker requires a tedious amount of work, documents and permissions, and they have to get themself registered with SEBI and stock exchanges.
Remisier can go to a stock broker and get themself registered under them, but one thing they have to do is enlist their name on at least one exchange, NSE or BSE.
3. Working Model
Brokers provide full-fledged services and web-based or mobile apps for users to help them with trading, investing and advanced tools for stock analysis and detailed research reports. In a competitive market, these offerings are expected from a stock broker.
Remisier only has to provide a recommendation to their trading platform and convince people to sign up for the stockbroker. Their only essential task is bringing more investors and traders to the stockbroker.
4. Earnings
Brokers earn in terms of brokerage fees. For example, if the broker validates Rs 50,00,000 tractions daily with a brokerage fee of 0.2% on delivery translation. The broker will earn 10,000.
Remisier gets 1000 people signed up to the platform, and each member gets a flat Rs 100. Their earnings will be 1,00,000 plus the 10-30% commission on the brokerage these people will generate on the brokerage.
5. Brand Value
For a Broker, their brand value and popularity are everything that attracts people to them. On the other hand, Remisier has to rely on his practical skills to get people to sign up.
Both Brokers and Remisier have advantages and disadvantages, and you can choose what profession will suit you better and will be more lucrative for you.