Sub broker v/s Authorised person

#1
Of late I have been hearing the term authorised person. I am unable to understand the difference between them and sub broker. Are they the same?
I noticed that traditional brokers use the term sub brokers whereas discount brokers use the term AP. Is it one and the same?
 

amsin21

Well-Known Member
#2
Of late I have been hearing the term authorised person. I am unable to understand the difference between them and sub broker. Are they the same?
I noticed that traditional brokers use the term sub brokers whereas discount brokers use the term AP. Is it one and the same?
NSE SB vs AP
 

tradedatrend

Well-Known Member
#3
Of late I have been hearing the term authorised person. I am unable to understand the difference between them and sub broker. Are they the same?
I noticed that traditional brokers use the term sub brokers whereas discount brokers use the term AP. Is it one and the same?
Sub brokers are required to get registered with NSE too (in most of the cases) and moreover they are required to deposit a certain sum (negotiable and varies with each company and sub-broker), sub-broker get a trading terminal on which they can trade for their clients just like a branch does, and their share of profit is negotiable and does vary in each case

Whereas AP are just required to fill an agreement form with broking company, often they are not required to get any registration done with NSE nor they are required to deposit any sum with the broking company and their share is often fixed (mostly at 20%) and most important they are not authorized to trade on behalf of their client i.e. they doesn't have any trading terminal

hope it helps
 
Last edited:
#4
Sub brokers are required to get registered with NSE too (in most of the cases) and moreover they are required to deposit a certain some (negotiable and varies with each company and sub-broker), sub-broker get a trading terminal on which they can trade for their clients just like a branch does, and their share of profit is negotiable and does vary in each case

Whereas AP are just required to fill an agreement form with broking company, often they are not required to get any registration done with NSE nor they are required to deposit any sum with the broking company and their share is often fixed (mostly at 20%) and most important they are not authorized to trade on behalf of their client i.e. they doesn't have any trading terminal

hope it helps
Thank you..

Your last part of the post cleared my question..
 

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