A stock broker deals in various kinds of stocks, shares and securities on behalf of particular investors like private clients, corporate and institutional investors. He acts as a liaison between the individual investors and stock market. A stock broker is a licensed professional who performs tasks like purchasing and selling stocks, bonds, securities and advises clients and manages their investments. He can also deal with fixed interest investments such as gilts, treasuries and corporate bonds, shares in listed companies and/or more exotic instruments such as derivatives.
Booming market and increasing interest in stock trading among general population has fueled the demand for qualified stock brokers. This is a tough job. It is never easy to handle someone else’s money. However, as a career prospect, stock broking holds several promises.
To become a stock broker in USA, one has to complete undergraduate degrees in business administration with subjects like accounting, finance or economics. With a bachelor’s degree, one will only be able to get an entry-level stock broker position but if one wants to reach top positions, one must pursue an MBA or other master’s degree in a related financial field. A stock broker must obtain the requisite license. He/she needs to pass the National Association of Securities Dealers’ General Securities Registered Representative (Series 7) exam.
New recruits are provided on the job training which includes security analysis, detailed information on the firm’s products and services, effective selling skills and communication skills. The internship period allows new candidates in finessing their skills. Stock brokers working with a financial firm must get registered with the Financial Industry Regulatory Authority after having worked for a period of four months. Brokers can acquire additional license and certification to further their careers.
If we talk about Britain, before stockbrokers can start practicing, they must pass certain exams. They need to be authorized by the Financial Services Authority (FSA). Some of the common qualifications held by stockbrokers in UK are,
The Securities and Investment Institute (SII) Level 3 Certificate in Investments,
CFA Society in the UK Investment Management Certificate
Minimum of grade B in GCSE Mathematics
EDEXCEL National Award in Personal and Business Finance
Chartered Financial Analyst (CFA©) Charter in Financial Analysis
Employment opportunities for stockbrokers are available with market makers, investment banks, private client brokers and asset management firms.
To become a stock broker in India, one must be a graduate with minimum of 2 years of experience in a stock broking firm. Once the course is completed, the broker has to register with the Securities and Exchange Board of India (SEBI) to become a stockbroker.
There are various courses on stock broking in India:-
Post-graduate membership course in capital market and financial services
Chartered Financial Analyst Equity Research
One-year Post-Graduate Diploma in fundamentals of capital market development and
Numerous Certificate Courses
Some of the major institutes offering stock broker courses in India are:-
Bombay Stock Exchange’s BSE Training Institute, Mumbai
Institute of Company Secretaries of India, New Delhi
Institute of Capital Market Development, New Delhi
The UTI Institute of capital Market, Navi Mumbai
Institute of Financial and Investment Planning, Mumbai
One can find jobs at different business houses, broking firms, investment banks or can work as an analyst or dealer.