Authorised Person Business Model

Interest in the equity market has been growing among investors. To invest, one needs to go through brokers or authorised persons authorised by the stock exchanges.

The business model is something like this: Angel One provides the brand and infrastructure support in exchange for brokerage. The reward for higher brokerage received is in the form of higher commissions.

This can be a win-win situation because getting a broker’s license can be difficult and expensive, and the only way of getting a part of the pie is by being an authorised persons. This kind of authorised person business model allows smaller players to enter the market without them needing to make expensive investments in infrastructure and marketing. Brokers also benefit since they can expand their footprint considerably across the country without spending much on staff and infrastructure. It means more significant volumes of transactions for brokers, and more brokerage and commissions all around.

In Angel One authorised person business model, a significant chunk of the brokerage is paid out in the form of commissions. These could range anywhere between 50 percent and 70 percent. If you have enough experience in the business and useful contacts and client list, Angel One may consider offering you higher commissions.