New Delhi, April 15 -- Earning passive income by referring friends to stock brokers is a popular strategy for market enthusiasts. However, recent regulatory updates have changed how these programs operate.

In August 2024, the National Stock Exchange (NSE) issued new guidelines to prevent "trade inducement," i.e. the practice of encouraging users to over-trade simply to earn a commission. As a result, many brokers have completely restructured their reward systems.

Before choosing a platf915orm, it is important to understand how brokers calculate your earnings.

Many traditional brokers advertise high revenue-sharing percentages (like 60% or 70%). However, they calculate your share based on "net" brokerage, not "gross." This means they de...