How to Become a Stockbroker is the question of the hour. Being a stockbroker in a time like today is one of the most lucrative and high-paying career options.
With the sudden shift towards online stock trading, share market, and NFTs, stockbrokers are in high demand, making it one of the most sought-after professions.
However, the question How to become a stockbroker remains unanswered for many interested candidates. Don’t be one of them!
Read this blog to discover who is a stockbroker, whether you can become one, and above all, find the answer to the question of the hour. Let’s get started!
How to become a stockbroker?
Becoming a stockbroker is a lengthy process. Let us walk you through the steps of How to become a stockbroker:
1. Pursue the necessary educational qualifications
The first step towards becoming a stockbroker is acquiring a bachelor's degree. You don't need a specific degree although a degree in business, economics, accounting, or finance can prepare you to become a stockbroker.
For a competitive advantage, you can pursue MBA to gain better positions, compensation, and large signing bonuses.
2. Take up an internship
Internships can open doors for the experience you may need to become a stockbroker. An internship can help you gain the right knowledge, good connections, and experience with finances. It can also give you a competitive edge over other candidates.
3. Complete registration with a stock exchange
Once you have completed your education and internship, get registered with a stock exchange. Some of the many stock exchanges in India that you can explore are MCX Stock Exchange Ltd., Bombay Stock Exchange, United Stock Exchange, National Stock Exchange, and Calcutta Stock Exchange.
On completing registration, you can use registration ID to trade on behalf of your clients and can buy & sell stocks for them.
4. Get SEBI certification
Once registered with a stock exchange, apply for registration through the Securities and Exchange Board of India (SEBI), to get your CoR (Certificate of Registration) to become a licensed stockbroker.
SEBI is the regulatory body and monitors stockbrokers to regulate the market and keep the investors protected. The registration process is simple with the registration forms available in the SEBI office and the website.
Some basic information you need to have handy to get registered with SEBI include Name, address, Permanent Account Number (PAN), and the name of the stock exchange of which you are a registered member. On payment of a nominal fee after the registration is completed, you are qualified to become a stockbroker.
You can also explore Stockbroker jobs here.
What does a stockbroker do?
Now that we know how to become a stockbroker, we need to understand what does a stockbroker do?
A stockbroker is a licensed stock trader who can buy and sell stocks on behalf of their clients. They get paid through a commission which is a percentage value of each transaction they make for their clients.
Apart from being up-to-date with the market trends, here are some additional important duties of a stockbroker:
- Sharing accurate investment advice with clients
- Establishing a client base through networking and cold calling
- Update the investment portfolio status regularly and communicate developments to the concerned client.
- Evaluation of financial reports
- Awareness of financial news and climate
- Devising investment strategies for each client to maximize benefits
Qualifications needed to become a stockbroker
To become a stockbroker, you don't need any specific skill set or educational qualifications. If your interest lies in sales and finance, then becoming a stockbroker can be a great career fit for you!
The educational qualifications you must have to pursue a career as a stockbroker are:
- Bachelor's degree, preferably in business, economics, finance, or accounting
- Masters of Business Administration or MBA (preferred, not mandatory)
- Deep understanding of statistics, mathematics, and quantitative analysis.
Skills for stockbrokers
Here are some stockbroker skills that can help you do well as a stockbroker:
- Financial analytics
- Quanititative analysis
- Knowledge of mathematics and statistics
- Aptitude for researching market trends in-depth
- Wealth management
- Portfolio creation, management, and assessment
- Negotiation
- Problem-solving skills
- Interpersonal skills
Conclusion
Stockbroking is a pure game of numbers to be played very carefully. If you feel you have the knowledge, ability, and aptitude towards the finance market, then becoming a stockbroker can be a great career option for you.
With this blog, we hope you were able to answer How to become a stockbroker? and discovered the key qualifications, skills, and steps needed to pursue this as a career.
All the best!
