Who is a Stockbroker?
The stock market is a device for transferring money from the impatient to the patient ~ Warren Buffet
A stockbroker is someone who is involved in the trading profession. He or she is responsible for buying and selling shares of the stock market on behalf of their clients. A stockbroker job role is also known as investment advisor or registered representative. Stockbrokers are employed by brokerage firms to manage transactions for individual and institutional clients. A stockbroker’s earnings are dependent on the commission. The compensation methods vary depending on employers.
Stockbroker in a Nutshell
A stockbroker is a professional who is responsible for buying and selling stocks on behalf of their clients. He or she provides investment recommendations with high profitability to his or her clients. There are types of stockbrokers - online broker, discount broker and a full-service broker. Keep reading the entire article to know more about the career as a stockbroker.
Quick Facts for Stockbroker
Average Salary in India
A career as a stockbroker is suitable for everyone regardless of gender. Whether a person is male, female or belong to any other gender can opt for a career as a stockbroker. It demands a strong knowledge of the stock market.
Table of Contents for Stockbroker
What is the role of Stockbroker?
The everyday activities of a stock broker career varies. A stockbroker generally works in an office environment. Several stockbrokers are required to visit their clients’ offices to offer consultations and services. The work hours usually extend in a stockbroker career. He or she is required to work with companies and individuals. A stockbroker requires you to keep an eye constantly on everyday changing stock values. He or she sells stocks on behalf of companies and makes profitable investments for clients. A stockbroker career comes with the responsibility of managing stock portfolios. He or she must be capable of analysing the stock market and making future predictions. A stockbroker must be able to after selling and trading strategies.
You may also read a career as financial analyst
A stockbroker has to create his or her own client list whether he or she works for larger trading firms or smaller ones. Stockbrokers spend a lot of time in customer recruitment and customer service. His or her work involves following up current clients and calling up respective clients. A stockbroker is required to maintain a strong trustful relationship with his or her clients. He or she is required to update their portfolios and look for new investment opportunities.
A stockbroker is required to disclose all the information to their clients related to investment recommendations and risks involved in it. A false, misleading or exaggerated statement can affect the relationship of a stockbroker with his or her clients and may lead to legal action.
A stockbroker is responsible for trading stocks, buying and selling them on behalf of their clients. Trading is done electronically. Several stock brokers execute trades on the physical trading floor or by phone.
A stockbroker’s earnings depends on the commission. It may cause conflict between the interest of stock brokers and interest of clients. A stockbroker is liable to follow the rules of regulatory authorities.
Types of a Stockbroker
Full-service broker: A full service broker provides personal service to his or her clients. It includes providing them all the necessary information and recommendations for trading based on personalised research. This also includes the information that can-not be accessed by those people who are not availing brokerage services.
Discount broker: A discount broker is a professional who takes orders from the clients. He does not offer any advice, analysis or research services.
Online broker: An online broker is responsible for providing support to client in carrying out their everyday research. It includes providing charts, investment news and selection of stocks to them. An online broker possesses a good knowledge of stocks.
What is the workplace/work environment of Stockbroker like?
A stockbroker works in an office environment. He or she spends most of his or her time communicating to clients on the telephone. He or she stays in front of the computer screen all day long to update the clients for any changes that happen in the meanwhile. The stockbroker job demands to work in a fast paced and sometimes stressful environment. Several stockbrokers are often required to travel to meet the personal and corporate clients staying up in local cities or foreign countries.
Does Stockbroker require travelling?
Yes, a career of a stockbroker often requires travelling local and internationally to meet the clients.
A stockbroker works full-time as well as part-time. In several circumstances work from home is provided. He or she spends most of his or her working hours on call communicating to clients. A stockbroker career falls into certain shifts. In India, the National Stock Exchange opens at 9 am and closes at 6 pm.
A career as stockbroker provides employment on both contractual as well as permanent basis. The nature of employment of stockbroker career is dependent upon the requirement of the recruiters.
A stockbroker works in an office environment. He or she often requires travel to meet clients locally and internationally.
Presence in Geographical Area
People are more aware about the stock market, its concept and terms in urban and semi-urban areas unlike rural areas. Mumbai, Hyderabad, Bengaluru and Pune provide good alluring opportunities to stockbrokers. The salary packages provided to stockbrokers are higher in Mumbai and Hyderabad.
A stockbroker requires working under frequent time pressure. The prices of the stock market keeps going up and down.
A stockbroker job demands working stretched hours than usual.
Weekly Hours of Work
Min 35 Hours
A stockbroker often requires to work stretched hours.
How to become a Stockbroker?
What are the skills and qualities required to become a/an Stockbroker?
Listening skills: A career as a stockbroker demands providing an ear to the client and understanding their concerns. It is crucial for them to provide the right recommendations to make investments in the stock market as per their needs.
Speaking skills: It is a crucial skill for a stockbroker career. He or she is required to speak clearly and confidently on a daily basis to his or her clients. A stockbroker must be able to communicate fluently to his or her clients to provide them recommendations to invest with higher profitability.
Critical Thinking: Applying logic and reasoning is a n important part of a stockbroker's career to predict profitable investments. He or she is responsible for identifying the problems and providing alternative solutions concerning both strengths and weaknesses.
Persuasion skills: A stockbroker must be able to persuade his or her clients to listen to him or her and get convinced by their recommendations. He or she must be able to analyse the stock market and its upcoming conditions to predict the outcomes.
Which certifications and internships can be helpful in becoming Stockbroker?
Internships play a crucial role in early years to build up a successful career. For a career as a stockbroker, individuals with a related degree in finance, marketing, economics or accounts are provided preference. Aspiring individuals can opt for internships as learning opportunities to further build up their portfolios.
Several organisations offer a full-time role to individuals who have performed well during their internship period.
Career Path Progression for Stockbroker
Junior Stockbroker: A junior stockbroker is a professional responsible for financial analysis. He or she provides assistance to clients and customers to make profitable investment decisions. He or she recommends investing in stocks of a profitable organisation.
Senior Stockbroker: A junior stockbroker is a professional responsible for managing portfolios and providing recommendations to clients on making investment decisions in the stock market. He or she also processes transactions on behalf of clients. Excellent communication skills are crucial for this role.
Stockbroker Jobs and Salaries
- Average Salary 300000
A junior stockbroker generally possesses an experience as 1 to 4 years. He or she manages the stock account of individuals and provides them assistance in investing in the shares of companies that ensure more profitability.
A junior stockbroker can easily make more than Rs. three lakh per annum.
- Average Salary 500000
A senior stockbroker has a working experience of 10 to 20 years. He or she has a vast knowledge about the stock market and knows how certain circumstances can affect the value of the shares of the various companies or organisations.
A senior stockbroker can easily make more than Rs. five lakhs per annum.
What is the job outlook for Stockbroker?
A stockbroker can progress up to senior-level roles and get a good amount of compensation. He or she must learn to apply sales techniques and build a large client base with numerous portfolios. A trustworthy relationship with clients ensures a successful stockbroker career. It is seen that an experienced stockbroker earns double the amount than of an entry-level stockbroker. The median earning of the stockbroker average salary is more than the national average. There are several factors that affect the job growth of a stockbroker. It includes the years of working experience in the stock market firm, education and geographic location.
Frequently Asked Questions for Stockbroker
Que. What is the average salary of a stockbroker?Ans.
The salary of stockbrokers varies depending on their experience, skills and relative degree. The average salary offered to stockbrokers is Rs. 390,000 per annum.
Que. What are the qualifications of a stockbroker?Ans.
A bachelor, master or associate degree in finance, marketing and management supports the career of a stockbroker.
Que. What is the relative working experience that can help you to get a stockbroker job?Ans.
A working experience of a few years in investment banking or as a financial advisor can help you to get the stockbroker job role.
Que. What are the other alternative career paths similar to stockbrokers?Ans.
You may opt for another alternative career such as portfolio manager, financial advisor and investment banker.
Que. What are the top colleges to get a stockbroker’s degree?Ans.
We have mentioned colleges below that provide a degree in financial services.
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