Stock Broker

In this career guide, you’ll learn everything you need to know about stockbroking as a career, from roles and responsibilities, to work environment and roadmap to becoming a Stockbroker.

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.

Responsibilities

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.

Workplace

Where will you work?

Office

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.

Education

How do you get there?

STEP 1: Class XI-XII/Junior College

Opting for the humanities stream won’t give you an advantage in your journey as a stockbroker. However, if you do take this route, opt for Mathematics as one of your subjects, and look at pursuing a BSc in Finance/Economics or a BBA at a graduation level.

STEP 2: Graduate Degree

The minimum educational qualification required is a graduation with at least two years of experience in a stockbroking firm. There is no specific degree required, although BBA, B.Sc in Finance, or B.Sc in economics can help you prepare for your career as a stockbroker. The duration for these courses are usually around 3 years and to be eligible for them you’ll have to pass your 12th. Generally, admissions for BBA courses take place on the basis of an entrance exam while for BSc courses, merit-based preference is awarded.

STEP 3: Internship

As you are pursuing your degree, look for internship opportunities. Many brokerage firms hire interns to work in their offices. In addition to providing the opportunity to apply your knowledge and gain work experience, internships can also help you create valuable connections with other professionals in the financial industry. This is also a great way to get access to additional job training that many brokerage firms provide to new stockbrokers.

STEP 4: Post Graduate Degree

You can do certain certifications related to stockbroking which will be a great aid when applying.

Some of the certificate courses for stockbroking are:  1. NSE’s Certification in Financial Markets 2. NSE’s Certified Market Professional  3. Certificate Programme on Capital Markets 4. PG Diploma in Capital Market and Financial Services  5. Post Graduate Diploma in Fundamentals of Capital Market Development.
To gain a competitive advantage over other candidates, you may also want to pursue a Master of Business Administration. Employers often reward candidates who have obtained their MBA with more advanced positions, better compensation and larger signing bonuses.

STEP 5: Landing a Job

Before you can become a licensed stockbroker, you need to register with the Securities and Exchange Board of India (SEBI) to obtain your Certificate of Registration (CoR). If SEBI accepts your application, you can pay a membership fee to join and begin trading. To become a stockbroker, you must register and become a member of a stock exchange first. There are several active stock exchanges you can explore, including the Bombay Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX), Calcutta Stock Exchange, United Stock Exchange and National Stock Exchange (NSE).

Some broking firms may require you to complete additional certification through the National Institute of Securities Markets (NISM). This programme educates investors, sub-brokers, stockbrokers and other financial professionals about the stock market.

Congratulations, you are now officially a Stockbroker!

STEP 1: Class XI-XII/Junior College

Opting for the commerce stream would give you an added advantage since you will be taught many relevant concepts related to the financial markets in your Business Studies and Entrepreneurship classes.

STEP 2: Graduate Degree

The minimum educational qualification required is a graduation with at least two years of experience in a stockbroking firm. There is no specific degree required, although BBA, B.Sc in Finance, or B.Sc in economics can help you prepare for your career as a stockbroker. The duration for these courses are usually around 3 years and to be eligible for them you’ll have to pass your 12th. Generally, admissions for BBA courses take place on the basis of an entrance exam while for BSc courses, merit-based preference is awarded.

STEP 3: Internship

As you are pursuing your degree, look for internship opportunities. Many brokerage firms hire interns to work in their offices. In addition to providing the opportunity to apply your knowledge and gain work experience, internships can also help you create valuable connections with other professionals in the financial industry. This is also a great way to get access to additional job training that many brokerage firms provide to new stockbrokers.

STEP 4: Post Graduate Degree

You can do certain certifications related to stockbroking which will be a great aid when applying.

Some of the certificate courses for stockbroking are:  1. NSE’s Certification in Financial Markets 2. NSE’s Certified Market Professional  3. Certificate Programme on Capital Markets 4. PG Diploma in Capital Market and Financial Services  5. Post Graduate Diploma in Fundamentals of Capital Market Development.
To gain a competitive advantage over other candidates, you may also want to pursue a Master of Business Administration. Employers often reward candidates who have obtained their MBA with more advanced positions, better compensation and larger signing bonuses.

STEP 5: Landing a Job

Before you can become a licensed stockbroker, you need to register with the Securities and Exchange Board of India (SEBI) to obtain your Certificate of Registration (CoR). If SEBI accepts your application, you can pay a membership fee to join and begin trading. To become a stockbroker, you must register and become a member of a stock exchange first. There are several active stock exchanges you can explore, including the Bombay Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX), Calcutta Stock Exchange, United Stock Exchange and National Stock Exchange (NSE).

Some broking firms may require you to complete additional certification through the National Institute of Securities Markets (NISM). This programme educates investors, sub-brokers, stockbrokers and other financial professionals about the stock market.

Congratulations, you are now officially a Stockbroker!

STEP 1: Class XI-XII/Junior College

Opting for the science stream won’t give you an advantage in your journey as a stockbroker. However, if you do take this route, opt for Mathematics as one of your subjects, and look at pursuing a BSc in Finance/Economics or a BBA at a graduation level.

STEP 2: Graduate Degree

The minimum educational qualification required is a graduation with at least two years of experience in a stockbroking firm. There is no specific degree required, although BBA, B.Sc in Finance, or B.Sc in economics can help you prepare for your career as a stockbroker. The duration for these courses are usually around 3 years and to be eligible for them you’ll have to pass your 12th. Generally, admissions for BBA courses take place on the basis of an entrance exam while for BSc courses, merit-based preference is awarded.

STEP 3: Internship

As you are pursuing your degree, look for internship opportunities. Many brokerage firms hire interns to work in their offices. In addition to providing the opportunity to apply your knowledge and gain work experience, internships can also help you create valuable connections with other professionals in the financial industry. This is also a great way to get access to additional job training that many brokerage firms provide to new stockbrokers.

STEP 4: Post Graduate Degree

You can do certain certifications related to stockbroking which will be a great aid when applying.

Some of the certificate courses for stockbroking are:  1. NSE’s Certification in Financial Markets 2. NSE’s Certified Market Professional  3. Certificate Programme on Capital Markets 4. PG Diploma in Capital Market and Financial Services  5. Post Graduate Diploma in Fundamentals of Capital Market Development.
To gain a competitive advantage over other candidates, you may also want to pursue a Master of Business Administration. Employers often reward candidates who have obtained their MBA with more advanced positions, better compensation and larger signing bonuses.

STEP 5: Landing a Job

Before you can become a licensed stockbroker, you need to register with the Securities and Exchange Board of India (SEBI) to obtain your Certificate of Registration (CoR). If SEBI accepts your application, you can pay a membership fee to join and begin trading. To become a stockbroker, you must register and become a member of a stock exchange first. There are several active stock exchanges you can explore, including the Bombay Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX), Calcutta Stock Exchange, United Stock Exchange and National Stock Exchange (NSE).

Some broking firms may require you to complete additional certification through the National Institute of Securities Markets (NISM). This programme educates investors, sub-brokers, stockbrokers and other financial professionals about the stock market.

Congratulations, you are now officially a Stockbroker!

What skills would you need?

Analytical and Data Skills

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

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
Promotion levels

How do you make it to the top ranks?

  • promotion-1
  • promotion-2
  • promotion-3
  • promotion-4
  • promotion-7

Sub-broker

At this stage, your role will be to assist stockbrokers in providing clients with investment facilities. The stockbrokers will rely on you to increase their clientele.

Stockbroker

As a stockbroker, you will be responsible for handling the funds of your clients directly and looking for ways to get the best monetary return on their investments.

Brokerage Supervisor

When you reach this level, you will be overseeing one or more brokers. Your primary goal will be to ensure that your team is complying with all the legal and regulatory standards.

Financial Manager

Here, you will not only be responsible for the finances of individuals but entire companies! Your services will include preparing accounting reports, financial reports, cash-flow statements and profit projections.

Chief Financial Officer

As a CFO, your usual tasks would revolve around administration, finances, and risk management operations of the organisation. You will also be required to come up with financial strategies for the entire organisation.

Scope

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.

Payscale

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.


Specialisations

What are your career options?

Investment Banking

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.

Corporate Finance

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

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.

Financial Planning

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.

You’ve only scratched the surface.

Unlock the full Mentoria Solution to get helpful updates on your chosen industry!

UNLOCK NOW