The stock market is a vast field with numerous people working in different roles and functions. People willing to start a career in the financial market can take years to learn each and every aspect of the market. Better late than never, you can start by learning some of the basic parts of stock broking.
The two most essential aspects of stock broking are – sub brokers and remisiers. Though sub brokers and remisiers are often confused to be the same, technically there is a subtle difference between the two.
Let us try to understand in detail.
What is a Sub-Broker?
A sub broker is an individual who acquires, manages, and deals with new clients for a stockbroker. He/She assists the clients to invest and deal with securities. He/she also manages the portfolio and queries of the clients. A sub-broker earns his/her commission from the transactions done by the investors.
What is a Remisier?
A Remisier is an independent person/agent whose job is to acquire new clients for a stock broker. In order to be hired by a brokerage firm, a remisier has to enlist him/her with the stock exchange. A remisier earns a percentage on the transactions made by a client. The role of a remisier is simple and it has no additional requirements like assisting, managing and after-service to the clients.
Sub-Broker and Remisier: Differences
The primary difference between a Sub Broker and a Remisier is in the business model they follow. This is explained below:
| POINTER | SUB-BROKER | REMISIER |
| Business Infrastructure | Most Sub-Brokers have their own business infrastructure. Often it is a compulsion by brokerage firms to have an office space if sub-brokers wish to work with them. | A Remisier works as an independent agent, so they do not have any compulsion to have their own business infrastructure. |
| Role Responsibilities | A Sub-Broker has multiple responsibilities. They acquire new clients, assist and manage the portfolio of the clients. So the brokerage is higher in comparison to a remisier. | A Remisier has only one primary responsibility, that is, acquiring new clients for the brokerage firm. So, the brokerage is lower than a sub-broker. |
| Job Types | Being a Sub-Broker is a full-time job as he/she has to take an active part in broadening the knowledge of a client. He/she has to share market research, reports, and provide call assistance to the clients. | A Remisier, on the other hand, can work as a part-time job as his/her job only involves bringing in new clients for the broker. |
| License Regulations | A Sub-Broker must enlist with SEBI (Securities and Exchange Board of India) to get a license. | A Remisier must enlist with a stock exchange to get a license. |
Conclusion
In the stock market, a sub-broker and a remisier both play an important role. They acquire new clients for the broker and work as an intermediary. They both earn commissions from a broker, but technically the job of a sub-broker involves more responsibilities. So whether you wish to work as a sub-broker or a remisier depends on your financial goals, job involvement, and lifestyle.