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Zerodha Franchise or Sub Broker Review – Cost, Commission, ROI & more

Zerodha is India’s biggest stockbroker. If you start a Zerodha Franchise, you can offer the lowest brokerage rates to your clients.

Zerodha LogoAlso, you can provide various products like stocks, derivatives, commodities, IPOs, mutual funds and insurance.

This broking house started its business in 2010, and now it has more than 5,000 franchises across India.

A Zerodha Partner is one of the most trusted advisors to lead their clients to financial well-being.

Zerodha’s brand power, flexible work model and scalable income make it the favourite of many partners and traders.

Brand Summary
Line of Business Sub Broker
Unit / Shop Area Not Required
Commission% / Revenue Sharing 30% – 50%
Total Investment Rs.11,ooo
ROI Timeframe 1 Month

Why Invest in the Zerodha Franchise?

India’s Most Trusted Brand: A Zerodha Sub Broker Benefits most from Zerodha’s reputation. That provides them with a traders’ trust in Zerodha.

So, partners don’t need to put much effort into client acquisition.

Good Revenue Sharing: Zerodha’s franchise model offers an attractive revenue-sharing model. That allows partners to earn commissions based on their client’s trade volume.

Broad Product Portfolio: Zerodha offers a diverse range of financial products, including equities, commodities, currencies, and more.

Partners can fulfil diverse trading needs, which attracts a wider client base.

Cutting-edge Technology: Up-to-date trading facilities provide a seamless dealing experience to partners.

What do you know about Zerodha Sub Broker?

About the Brand
Industry Finance & Money
Business Line Sub Broker
Organization Type Private
Head Office Bangalore
Founder Nithin Kamath
Founded In (year) 2010
No. of Franchise Outlets 5000+
Master Franchise Model Not Available
Franchise Tenure Lifetime
Franchise Location All over India
Business Set-Up Time 1 Month
Franchise Commencement Year 2011

Zerodha, a leading name in the finance industry, is a private organization headquartered in Bangalore.

Founded by Nithin Kamath in 2010, Zerodha has quickly become a trusted platform for investors and traders in India.

With over 5000+ franchise outlets spread across the country, Zerodha offers its partners and affiliates an opportunity to be a part of their success story.

As a Zerodha partner or affiliate, individuals can benefit from their lifetime tenure program and access to their wide range of financial products and services.

Whether you are an experienced trader or new to the world of investing, Zerodha provides a reliable and user-friendly platform for all your trading needs.

How many types of Zerodha Franchise Models available?

Business Models
Partner Upto 50%
Referral 10% + 300 Zerodha Points per client acquired

Check out various business models of Zerodha here.

Zerodha Partner Model

A Zerodha Partner is the bridge between the broking house and the clients. They acquire their client base from their connections and local markets.

However, they need to understand financial and stock market rules strongly so they can guide their clients in stock trading and ensure their clients make a profit from their assets.

They earn from the trading volume of their clients as per their shared revenues. Furthermore, they foster trust in their clients.

Their loyalty and proper advice help them earn from the volatile stock markets.

Zerodha Refer and Earn

Zerodha Refer and Earn program is a unique initiative. That allows users and partners to exploit their network and reap rewards from new clients.

It allows existing users to invite friends, family, or acquaintances to join the platform. So, it creates a win-win scenario for both the referrer and the new user.

They need basic knowledge of the stock markets for the refer and earn model. So they can attract new clients for the stock trade.

In short, persons interested in stocks and shares can attract their connections to make a profit in this market.

What is the Zerodha Franchise Cost?

Investment by Franchisee
Partner – Franchise Fee Rs.11,000
Referral – Franchise Fee Zero
Infrastructure Investment Zero Investment

Opening a Zerodha franchise is not a costly choice. A Zerodha Franchise Cost needs an upfront investment of Rs.11,000 only.

The fee mainly fulfils the charges for SEBI and the exchange (NSE/BSE) registration and regulatory clearances.

However, Zerodha does not require office expenses. So, applicants can start their business with phone lines and computers with internet connection.

Also, hiring research or advisory services and trading terminal setups is optional. Thus, anyone can become a partner with a good client base.

Only they need to have strong knowledge of the stock market. So they can reduce the risk and make a profit.

How much is Zerodha Sub Broker Commission?

Commission% / Revenue Sharing
Partner Commission 30% – 50%
Zerodha Commission 50% – 70%
Referral Commission
Zerodha Commission 90%

Partners in Zerodha can earn from the shared revenues on their earned brokerages. They can maximise their brokerage earning by increasing their trading volume.

Zerodha Partner Commission is initially 30% when they make a total brokerage of lakh. When the revenue goes up to Rs.2 to 3 lakhs, the partner will get 40%.

And when the revenue goes to more than three lakhs, the partner will get 50% of their total brokerage. Also, Zerodha offers a referral commission of 10% for every new client gain.

So, anyone can earn only by referring new clients to Zerodha broking house.

How much you can earn from Zerodha Partner Program?

Monthly Revenue
No. of Active Clients 300
Daily Trades per Clients 5
Brokerage per Trade 20
Trading Days in 1 Month 15
Total Brokerage Revenue 4,50,000
Partner’s Share (40%) 1,80,000
Monthly Expenses
Office Rent (Co-working Space) 15,000
2 Telecallers Cost 40,000
Misc. Expenses 5,000
Total Cost 60,000
Monthly Profit
(Revenue – Expenses) 1,20,000
Profit Margin 27%

A Zerodha Partner Profits from the overall brokerage processed from their client’s accounts, which is flat Rs.20 per trade.

And it applies to intraday trading, equity, commodity, currency, options and futures. So, it provides a good earning opportunity for partners with a huge client base.

For example, suppose a partner has 300 active clients, and they process Rs.1500 brokerage on an average per month.

The total brokerage will be Rs.4,50,000. And as per a partner’s profit-sharing ratio, they will get 40%.

So, their earning will be Rs.1,80,000 per month; this doesn’t include expenses, though refer to the table for a proper breakdown.

How much time does it take for Zerodha Franchise to breakeven?

ROI Timeframe / Breakeven Time
In Years 1 Month

Every business person pays initial efforts and costs with the hope of a good return.

Due to the lower initial cost, Zerodha Sub Broker Returns or the breakeven point is only one month. However, the breakeven time depends on the clients’ number and trading volume.

So, if partners make reasonable efforts from the beginning, they will get ROI after their first month of starting a business.

Thus, after one month, partners will start earning profits. That is pretty fast.

Where is Zerodha Franchise Dashboard Login Link?

Dashboard Login
Partner / Sub Broker Backoffice or Dashboard Login

Applicants must register as partners to access the Zerodha Partner Dashboard. The applicant must clear all regulatory needs and submit their documents to create an account.

Once their accounts are created, they will get their user ID and password to log into their dashboard.

They can log in to their accounts from the Zerodha website. Then, they can access their Zerodha franchise dashboard.

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What is the Zerodha Franchise Infrastructure requirement?

Infrastructure Required
Shop / Unit Area Not Required
Employee Strength Not required
Research / Advisory Optional
Trading Terminals Set-up Optional
Telephone Lines Compulsory
Computer / Internet Connectivity Compulsory
Air-conditioner Optional
CCTV Set-up Optional

Phone Lines: To run a Zerodha Franchise, partners need a phone connection. It will help to connect with the broking house when needed.

Computer and Internet: As we know, share trading is an online process. So, computers with an internet connection are mandatory for running a sub-broking office.

Also, partners can set up trading terminals. However, it is optional and only required if they want to provide their clients with a stock observing facility.

Optional Requirements: Partners can set up an office with employees if they feel like it. However, Zerodha has no such requirements.

They may also hire employees to serve their trading needs if they like. Installing AC and CCTV in the office area is optional.

However, having an office setup is better to attract more clients and increase revenue. Moreover, a partner may hire research or advisory services to reduce stock trading risk.

What is the extent of Support provided by Zerodha Partner?

Support from Brand
Service Pricing Available
Offers Available
Client Interaction Training Available
Relationship Manager Support Available
Back-Office Support Available
Trading Support Not Available
Advisory Support Not Available
Marketing Support Available
Business Management Software Available
Website Support Not Available
Operation Manual Available
Training Manual Available

Product and Service pricing: A Zerodha Sub Broker gets full product and service details from the broking house, including their respective prices and offers, so they can provide the perfect information to their clients.

Client Interaction Training: It is essential to interact with clients so they get proper guidance on stock trading and their charges. Otherwise, clients may lose interest.

Back-Office Support: The Back office is essential to every trading agency. It helps with stock and account clearance.

RM Support: Every partner gets a dedicated Relationship manager to address their queries and needs.

Marketing Support: Also, it is essential to help partners grow their businesses.

What kind of Marketing Support is provided by Zerodha Franchise?

Marketing Support by Brand
Unit Interior & Exterior Ads Available
Local Advertisement Available
Digital Marketing Available
Television Advertisement Not Available
Prints Advertisement Not Available
Events/Seminars Not Available

A Zerodha Authorised Person gets effective marketing and ad support from the broking house, including interior and exterior ads for the office area.

Zerodha also provides local ad facilities to help them grow their business and influence their locality. Moreover, they offer complete digital marketing support.

As of now, almost every trader follows different online media to gain knowledge. So, attracting them from digital platforms is really effective.

Does Zerodha Sub Broker provide training?

Training by Brand
Product Information Training Provided
Dealers Training Not Provided
Service Training Not Provided

Yes, A Zerodha Affiliate Partner or sub-broker gets full product information training. That includes product details, their prices, and brokerages.

It helps them inform their clients perfectly. So their clients know how they manage their assets and their costs. It empowers them to make informed decisions.

Also, Zerodha provides client interaction training to its partners. So they can make sure their clients are adequately informed about the process.

Also, the clients become well aware before they start trading. It helps both partners and clients proceed with good knowledge of the stock market and the trading process.

What are the Products & Services provided to Zerodha Sub Brokers?

Products / Service Offerings
Equity Trading Available
Commodity Trading Available
Currency Trading Available
Options Available
Futures Available
Mutual Funds Available
Banking NA
Insurance Available
Demat Services Available
3 in 1 Acount NA
IPO Services Available
Stock Recommendations Available
Robo Advisory Available
Exposure or Limit Available
Mobile App Available
Web Trading Platform Available
Trading Terminal Available
Algo Trading Platform Available
Basket Trading Available

Partners owning a Zerodha Franchise can offer their clients almost all variants available for stock market trading.

Precise that includes all available services through Demat accounts. That is stock trading in equity, currency, commodity, options and future markets.

In addition, Zerodha offers exposure or limit for intraday trading. So the clients can maximise their profits. Likewise, clients can buy IPOs from a Zerodha sub-broking office.

Also, clients can order basket trading to buy and sell a large number of stocks. Apart from that, Zerodha franchises also offer other financial services like mutual funds and insurance.

Moreover, partners get stock references to guide their clients in selecting profitable stocks for trading. Also, they provide different trading platforms.

These are web trading platforms, trading terminals and Algo trading platforms. Furthermore, clients can use Zerodha mobile app to monitor the prices of their stocks.

What is the Brokerage offered to Zerodha Partners?

Brokerage Charges
Intraday Rs.20 per Trade
Delivery Free
Equity Options Rs.20 per Trade
Equity Futures Rs.20 per Trade
Commodity Rs.20 per Trade
Currency options Rs.20 per Trade
Currency Futures Rs.20 per Trade

The brokerage offered to a Zerodha Partner is pretty low. It is flat Rs.20 per trade. So, no matter the trading volume. Clients must pay a flat brokerage for the number of trades they process.

For example, if they process intraday, equity, commodity, currency, future or options trading, they must pay Rs.20 per trade.

However, delivery of stocks is free. So, clients do not need to spend any amount in case of stock delivery.

These flat brokerages provide golden chances for clients who process stock trading on large volumes.

How to Become a Zerodha Sub Broker?

Check Eligibility: The most important thing is the number of referrals to become a Zerodha Sub Broker.

Once a person refers more than 100 new client accounts to the broking house, they become eligible to work as partners.

That can be through online or offline sources. However, the referrals should be done following the standard process.

If Zerodha notices any misinformation or offers cashback to open accounts, they will cancel the application.

Application Process: Once eligible, applicants can apply online to work as Zerodha partners. That will require the submission of documents.

That is proof of identity, address, PAN, TAN, GST certificate, bank account details and a photo.

Interview: Once the application passes the initial screening, Zerodha representatives will conduct an interview.

They will check the applicants’ financial knowledge, client management skills, and business spirit.

Onboarding: After selection, applicants must obtain necessary approvals from SEBI and the stock exchanges (NSE/BSE).

Also, they need to take the product and service training from Zerodha. After that, they can start working as partners.

What is the Eligibility Criteria to start Zerodha Franchise?

Franchisee Qualification
Age Limit 21 years & above
Business Experience Optional
Academic Qualification No Restriction

Which documents are required to become Zerodha Sub Broker?

Documents Required
Franchise Agreement Required
Proprietor Aadhaar Copy Required
Proprietor Photo Required
Proprietor / Business PAN Copy Required
Business TAN Copy Required
GST Registration Certificate Required
Proprietor / Business Address Proof Required
Unit / Shop Address Proof Required
NOC of Unit / Shop Required

Is Zerodha Franchise good for you?

Franchise Ratings
Revenue Sharing 8.62 / 10
Franchise Fee & Infra Investment 8.48 / 10
Support & Training 8.24 / 10
ROI Timeframe 8.36 / 10
Brand Value 8.32 / 10
Overall Ratings 8.40 / 10

What are the Drawbacks of Zerodha Franchise?

Business Model: The single business model is one of the prime Zerodha Franchise Drawbacks. Partners who want to grow their businesses don’t get the opportunity other broking houses offer.

Low Brokerage: Zerodha offers flat brokerages. So, if trading volume is high, it is profitable for clients and not for partners.

Also, for low trades, the profit-sharing is very low. For example, if partners can produce brokerage less than Rs.1 lakh, they will get only 30%.

If they can generate more than Rs. 3 lakhs brokerage, they will earn 50%.

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Zerodha Partner Program – Conclusion

The Zerodha Partner Program is a golden chance for aspirants who want to earn a healthy income from the stock market.

Only they need to have a perfect client base. As the initial cost to become a sub-broker under Zerodha is very low, aspirants from any financial background can approach the position.

Also, it is the most popular broking house in India. So, client acquisition becomes very easy with such a reputed brand name.

FAQs on Zerodha Franchise Business

Here are various FAQs related to the Zerodha Sub Broker Franchise Business.

Does Zerodha have a Sub Broker Model?

Yes. Anyone with a good client base can become a sub-broker in Zerodha. They must refer at least 100 new clients to the system to qualify. They earn from the shared revenues on their brokerages.

Does Zerodha have multiple Franchise models?

Zerodha only has two franchise models. That is the Zerodha Partner Model and Zerodha Referral Program. The revenue sharing is different for these two models.

What is the Zerodha Sub Broker Commission?

A sub-broker earns based on the revenue-sharing ratio of their earned brokerages. If brokerage is less than Rs.1 lakh per month, they get 30%. And for more than Rs. 3 lakhs, they get 50%.

How much does Zerodha Franchise Cost?

It is free of cost to open a Zerodha franchise. However, applicants need to pay Rs.11,000 initially. It is for SEBI and the exchange (NSE/BSE) registration and regulatory clearances.

Does Zerodha have a Partner Program?

Zerodha has only one program, the Partner program. Unlike other broking houses, it doesn’t provide multiple programs. Partners can improve their earnings by processing more brokerages.

What is Zerodha Partners Sharing?

Zerodha Partner Sharing varies between 30% and 50%. Based on their performance, the partners get the share. The more brokerage they earn, the maximum share they get.

Is the Zerodha Partner Program Free?

Applicants only need to pay the regulatory charges for SEBI and exchange clearance to become Zerodha partners. Zerodha also has very few infrastructure requirements.

Does Zerodha provide Training Assistance?

Yes. Zerodha provides product and service information training to the partners. Also, they get client interaction training. So they can run their business smoothly.

How to Become a Zerodha Sub Broker?

To become a sub-broker, applicants must refer at least 100 new clients to Zerodha. After that, they become qualified to apply for partnership. Then, they need to submit their docs to start work.

Does Zerodha Franchise provide Support?

Yes. Zerodha provides its partners with training, back-office, and marketing support. They also get a dedicated RM to help them run their businesses seamlessly.

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