Many people are interested in the stock market and often try to make a career in this field. One possibility is to become a trader, but this requires extensive knowledge. Moreover, the risk in trading is much higher due to the volatility of the market. Another option for people is to become stockbrokers. This is a promising career, and brokers can earn a substantial income as trading volume increases. Brokers learn by doing and gain more knowledge over time. If you want to work as a stockbroker and are looking for a career path, this is the site for you.
In this article, we have discussed the aspects of the stockbroker profession and have listed many other details to help you become a stockbroker. You can check out all this information below and it will help you move forward in your career as a stockbroker. So let’s check the details now.
What does a stockbroker do?
Before we give you more details, we want you to understand exactly what a stockbroker does. To understand it better, we will also help you with some examples. The main task of a broker is to buy and sell on behalf of the client. In this case, the broker’s main job is to buy and sell stocks or MCX based on the data received from the clients. For a stockbroker, communication is essential. They need to be in constant contact with their clients and keep them informed of market dynamics. Each ticker offers them a chance to win money. When they advise their clients on fluctuations, they receive orders to place on the stock market.
Another important aspect of the broker’s activity is to seek value and provide valuable information to his clients. This information helps the customer decide whether to buy or sell. In addition, some stockbrokers go further and perform fundamental and technical analysis of stocks to offer their clients certain reports. A buy and sell order allows the firm to make a profit because it charges its clients brokerage commissions. There are two types of categories in the stock market industry and you need to choose your path.
The first option is to become a full service broker, which is more like the services offered by firms like ICICI Direct, Share Khan and other full service brokerage firms. The second option is to become a discount broker, which means you work with a discount brokerage company like Zerodha. This can be a difficult decision for you, as many people have already started choosing discount brokerage companies because they save money on these platforms. However, we can assure you that a career as both a discount broker and a full-service broker will be a promising option for you.
With the booming of Indian financial markets and the steady rise of stock indices, one can expect a successful career as a stockbroker. Since the operation is automated, you can easily track the information. To survive the game, you have to know how to behave. The following points will help you learn more about the exchange. Now let’s move on and learn more about how to become a stockbroker in India.
Eligibility to become a stockbroker in India
To succeed in a career in this field, you need to know the criteria of a stockbroker. To become a stockbroker, you only need to follow the plan if you meet the criteria to become a stockbroker. See details below.
- The candidate must have completed 10+2 with English as the main subject.
- The candidate must have completed postgraduate studies at a recognized institute.
- The candidate should have 2 years of experience in a listed company.
- The minimum age for a candidate is 21, there is no maximum age.
- Candidates must have, inter alia, the following skills
- Communication and presentation skills
- Analytical skills
- A technical nose and an IT professional
- Financial literacy
- The candidate must also understand the dynamics of the market and the economy. These topics will help the candidate better understand market movements.
- Candidates with commercial experience will have an advantage in this area, especially in the early years.
- An MBA degree is also preferable as they have the necessary knowledge and skills.
How to become a stockbroker
We discussed the selection criteria for this course. The next important thing is now to understand how to become a stockbroker. In this section we have included more information on how to become a stockbroker. You can also start as a sub-broker and then continue as a stockbroker. Take a look at the information below.
- Sub-broker – If you want to start with a sub-broker, you have many options. You can start by putting yourself in the shoes of a licensed stockbroker. You must be trading under a registered Exchange Participant membership, or you must be trading with an Exchange Participant ID.
- Broker – To become a stockbroker, you need to have significant capital. If you have this kind of capital, you can start your own brokerage company. First, you must apply for the scholarship. Once all the formalities are completed, the fair will give you a registration card. Also, keep in mind that you will have to pay registration fee, which may amount to several lakhs. Once you have access to the information, share your membership ID with your clients and start trading. Subbroking prepares you to become a stockbroker. In addition, you can franchise any existing stockbroker.
- On the application form you submit, you must include your contact details and PAN number. You must also specify the segment in which you want to close a transaction.
- Once you receive your registration certificate, you should read the trading manual. If you do not pay a commission, you are not considered a valid broker.
- The National Securities Market Institute was established by the NSE to inform stockbrokers about the market and changes made by the NSE or the BSE. Some companies also require you to take an NISM certification course.
SEBI is the central regulator for stockbrokers. It regulates the activities of all stockbrokers and was established to protect the rights and interests of investors. It is a regulatory body and SEBI approval is required to proceed.
Employment prospects of a stockbroker
The employment outlook for stockbrokers is very good. It also depends a lot on the skills of the person. If you have good customer relationship management skills, you will be very successful and make great progress in your career. There are several families working in the stock market, not counting stockbrokers. There are over 7,000 registered companies and over 6,500 brokers in India. With such a wide spread in exchange transactions, you can make good margins. You will find a number of jobs in the market, but you will need to have a lot of interaction with customers.
You can view some of the available profiles.
- Accountant
- Specialists in capital markets
- Financial Advisor
- Financial Director
- Independent agent
- Investment Advisor,
- Securities Analyst
- Real estate agency
- Security and Sales Representative
- Stockbrokers
Below is a list of areas that offer jobs for stockbrokers.
- Estate agents
- Financial Institutions
- Insurance companies
- Investment banks
- Investment Advice
- Large companies
- Magazines and newspapers
- Mutual funds and pension funds
- Search on
Wages and salaries of stockbrokers
The broker’s remuneration depends on his volume of business. As mentioned in the previous section, as a stockbroker you have an option. You can manage your own affairs or work with a broker. The salary largely depends on qualifications and productivity. The job profiles are highly motivated. In the beginning, you can earn 2 to 3 lakhs, and as you gain more experience, you can easily earn 5 to 7 lakhs per year. The bonus is exclusive and the incentive varies from broker to broker.
Training institutes for fairs and exhibitions
You can’t learn everything by reading books. You need a living teacher, and as the saying goes: No book can replace a living teacher. In this case, it becomes important for you to learn to act with the help of certificates or courses. If you want to become a master trader, you can take some courses that will help you a lot.
- BSE certification at the Central Securities Depository
- BSE certification for currency futures
- BSE certification for futures markets
- BSE certificate in securities markets
- Capital markets certification programme
- NSE certification on the financial markets
- NSE certified market professional
- Diploma in Financial Services and Capital Markets
- Postgraduate diploma in Fundamental knowledge of capital markets
Several institutes offer such courses and certifications. A simple search on their website would yield many results. See the list of these establishments below.
- All India Capital Market Research Centre
- Institute for the Development of Capital Markets
- Institute of Certified Financial Analysts of India
- Institute of Company Secretaries of India
- Institute for Financial Planning and Investment
- Mumbai Stock Exchange Training Institute
- Orion Capital Market Institute
- UTI Capital Markets Institute
Final assessment
If you are a stockbroker, we can assure you that for you the sky is the limit. You can profit from both rising and falling markets. You have to learn to trade and that’s how you can build an empire for yourself. You can also include traders and sub-brokers on your team to help you with basic stock trading tasks. If you like a stimulating work environment, this is the sector for you. If you start with technical and fundamental analysis of stocks, you can reach great heights. That’s all for today, and if you have any other questions about broken stockings, feel free to contact us.
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