India’s stock market involves many critical players, each with specific roles. Two such vital players are remisier and authorized persons. Often these terms are used interchangeably, but there are subtle technical differences in how they operate. It will be useful to know how to differentiate one from the other, especially if you are planning to start a career in stockbroking.

In terms of roles, they both act as intermediaries between investors and stockbrokers and earn commissions from sales. But they follow very different business models in their association with a broking house. Let us try to understand how remisiers and authorized persons are different.

To begin, let us discuss remisiers.

Who are remisiers?

Remisiers are independent agents whose primary role is to source new clients for a broking firm. As earning, they receive a percentage of the sales conducted as brokerage. Remisiers need to enlist themselves with the stock exchange to get hired by broking houses.

A remisier’s role is a simpler one, and in comparison to an authorized person, they also receive a lower percentage as commission, usually between 10 and 30 percent.

Difference between remisier and authorized person

Now let us discuss further and try to understand the difference between remisier vs. authorized persons.

An authorized person works as an extended business arm of a broking house and offers all its services, which includes taking an active part in trading on behalf of the clients, helping them with market research and knowledge. Authorized persons can also issue a contract or confirmation (of a trade document) on behalf of their client. A remisier does not enjoy any such rights.

The primary role of a remisier is limited to acquiring new clients, but the responsibility to finalize the deal rests with the firm. Entry-level costs for remisiers are often zero, and they do not need to have office spaces like an authorized person.

Check out the following chart on remisier vs. authorized person to get more clarity on the different roles.

Remisier vs. authorized person: Which is better?

There are pros and cons in both job roles. Here we have summarised them for a comparative understanding.

An authorized person often works under the big banner of a broking house, which means they also have access to tools and technology used by the company. Also, they enjoy access to market research reports and are trained to improve revenue.

Authorized persons also benefit from marketing drives run by the brand and use it to get new clients.

On the downside, it demands lots of involvement, research, and dedication. In terms of commitment required, remisiers have it a lot easier.

An authorized person is required to complete a deal and even extend his services to motivate clients for more investment and help them maximize profit. As total entrepreneurs, they are responsible for acquiring, nurturing, managing, and even for after-sales services to clients.

There are differences between remisier and authorized person business model. Which one is right for you? To answer the question, you will have to ask yourself what your career goals are. If you are looking to begin as an authorized person or remisier, RS Wealth can assist you in taking the next step.