Who's a Stock Broker?
Stockbrokers are like the middlemen in the stock market. What they essentially do is monitor the stock exchange to buy or sell shares of a company. They help their clients sell their current stock at the highest possible price. They also help them buy other stocks at the lowest possible price.
Sounds quite exciting, right? Many challenges and responsibilities come with the role of a stockbroker. It is a high-stress but well-paying job! Let’s find out more about what a stockbroker does.
What will you do?
Providing investment advice
After understanding your client’s needs and wants, you will be giving them fiancial advice that will help them achieve their financial planning goals. For example, a certain company’s values are increasing in the market. You will now suggest to your clients to sell the shares of that company so they get a high value for them.
Buying and selling stocks
Buying or selling financial bonds or shares on behalf of your clients will be a key part of your job description. Sometimes, you are in charge of the client’s bonds and shares. So you do your best to help them make the most money out of it.
Explaining financial terms to clients
You also have to Interpret financial documents and explain them to your customers. You are the market expert and your clients may not know much about the market. It is your job to explain the smallest of details and help them clarify their doubts.
Monitoring market fluctuations
The stock exchange is a very volatile place. If a stock is about to go up, then you must persuade the customer to invest in it. Similarly, if a stock is not performing well and you do not have any confidence in it, you must advise the client the same.
Tracking your customer’s financial investments
You must make sure that they make the most money out of their investment activities. For this, you have to routinely monitor and check the performance of their assets.
Analysing the market
You will be assessing the profitability of each company listed on the stock market. Your investment decisions for your clients depend solely on your ability to analyse the market.
Where will you work?
You would work at a brokerage firm and handle transactions for a number of individual and institutional customers. This will be a typical office from which you will be expected to carry out your operations.
How do you get there?
What skills would you need?
Analytical and Data Skills
You will receive huge amounts of data from your client. This data will have to be analysed effectively so you can find ways that will help your client reach their customers is the best way possible. While it is true that the more data you analyse, the more insights you generate; analytical thinking will help you narrow down your search and find your key actionable items, thus saving you a lot of time and resources.build this skill
Attention to Detail
Working with eggs and embryos is a very tedious task. Every little detail matters when you are observing them. If you are good at giving attention to detail, then your job at the laboratory will be made much easier.build this skill
How do you make it to the top ranks?
Pursuing your career locally VS abroad
The Indian stock market seems to be growing day by day. A number of foreign investors have been investing in the profitable share market of India. After gaining a few years of experience, you can also start your own consulting agency. If you have a degree in stockbroking, you have an option to become a financial manager, analyst, market specialist, etc. Larger broking companies prefer Chartered Financial Analysts (CFAs) or Chartered Accountants (CA) or MBA (Finance) graduates. These courses can range between INR 1,000 to 1,50,000 per annum.
Click here for some of the top colleges in India where you can study finance.
In the US and UK, the demand for stockbrokers is quite high. People and institutions will always need help to buy and sell stocks. Millions of stocks and other securities trade on the New York Stock Exchange alone every day, and not all trades will be done using computers. The need for skilled, smart, trusted brokers isn’t going to go away anytime soon.
You might want to consider a bachelor’s degree in business. Many stockbrokers also have a master’s in business administration (MBA) or a master’s in finance. It also helps if you have an academic background in maths, statistics, and analysis. An MBA in Finance abroad can be anywhere between 6 lakhs to over a crore. Some of the top colleges in the world for an MBA in Finance are : 1. The Wharton School 2. London Business School 3. NYU Stern School of Business.
To know more about the graduate and postgraduate courses available abroad for finance, click here.
How much would you get paid?
The exact number will depend on where you’re working, your education, skill-set and internship experience. Here is a rough estimate to provide you with some clarity.
What are your career options?
You can choose to specialise in the field of investment banking where you will be combining your financial services expertise and analytical skills with your persuasion and sales skills. Using these you will be providing services to large institutional clients with activities such as raising capital, acquiring companies, and setting up mergers.
If you’ve got a knack for numbers and enjoy budgeting to maximise the use of your money, then corporate finance could possibly be the best-fit option for you! In the field of corporate finance, there are several roles that you can take depending on your interests, education qualifications, and also the company with which you would be working. Usually, companies hire corporate finance professionals to include them in the company’s internal operations to allocate, invest, and save their money.
Portfolio management is a beautiful amalgamation of commerce and science. So if you’re someone who favours both the subjects, you’re in for some luck! A portfolio is an overall look at the status of the investments made by a client or company, without going into depth over each individual investment. A career in portfolio management will let you make decisions about the investment policies of an organisation, while simultaneously allocating assets for institutions and individuals to match their needs.
Are you a perfectionist when it comes to planning your finances? You may love going for a career in financial planning as well! Planners help companies and individuals formulate strategies that will secure their future as well as ensure current financial stability. In financial planning, you will get to review a customer’s financial plans and create a suitable method for investing and saving that suits their individual needs. The plan can concentrate on various aspects such as investment growth, wealth preservation or tax planning.