A Complete Insight on Career as a Stockbroker in India
We often hear equities, brokers, stock exchange, liquidity, shares, risk, dividend and alike in the field of finance and business. Shares and equities are the two essential terms which define the entire share market. Before we move ahead, it is vital to know about the stock or share market. It is the place or institution or an association where buyers and sellers trade in stocks, securities and bonds. Stockbrokers are the middlemen or agents who participate in the stock exchange on behalf of their clients.
Stockbrokers do not only deal in the sale and purchase of the share but, they also inform the clients regarding market fluctuations and current trends. In other words, they keep the clients informed on all essential aspects of the stock market and charge necessary commissions. They are well-versed with the market, boom and risk period. In this era of online trading, stockbrokers are the best option to approach if you don’t have a subtle idea about it.
A career as a stockbroker is highly beneficial for those who have a deep knowledge of the share market. Income is probably high due to potential commissions. Although there aren’t any specific educational requirements, there are some courses that will benefit you the most.
Educational Courses for Stockbrokers
- NSE’s certified market professional
- PG Diploma in the capital market and financial services
- NSE’s certification in financial markets
- Post Graduate Diploma in Fundamentals of capital market development
- Certificate programme on capital markets
- Master’s in Finance
- MBA in Finance
Eligibility Criteria to Become a Stockbroker
- Minimum educational qualification is graduation
- Candidates should have at least two years of experience in a stockbroking firm.
- 21 is the minimum age requirement
- Professional stockbrokers should specialise in the fields of commerce or business or economics.
- A PG in economics or Commerce or MBA in finance will be of great help.
Irrespective of the above qualifications and educational degrees, candidates should qualify the General Securities Representative Exam, also known as the series 7 exams or series 63 exams and many more. FINRA or Financial Industry Regulatory Authority administers this exam. Apart from this, there are different exams which qualifies them to deal in particular shares and bonds.
Few common entrance exams are:
- BSE Certification on Currency Futures
- BSE Certification on Central Depository
- BSE Certification on Securities Markets
- BSE Certification on Derivatives Exchange
One of the essential requirements to become a stockbroker is that you have to register with SEBI (Securities and Exchange Board of India), to complete these courses. After becoming a member, candidates undergo precise training on subjects like capital markets, securities, accountancy and alike. Candidates who are finally eligible to become a broker get the final membership.
Top Colleges in India Offering Stockbroking Courses
- Institute of Company Secretaries of India
- All India Centre for Capital Market Studies
- Mumbai Stock Exchange Training Institute
- Institute of Financial & Investment Planning
- Institute of Capital Market Development
- The Orion Institute of Capital Market
- Institute of Chartered Financial Analysts of India
- The UTI Institute of capital market
What does a Stockbroker do?
Stockbrokers have to work for long hours to become highly-knowledgeable and well-versed. Generally, they have to suggest and advise their clients on necessary matters related to stocks and shares. Marketing and communication skills should be prolific to attract and retain potential clients. Amidst 2009-2019, several technological and technical advancements have taken place in the finance sectors. Consequently, it has enhanced the participation of investors, vitalised the exchange and better yields for stockbrokers.
Basically. following are the key responsibilities of Stockbrokers:
- Research on the financial markets
- Advice and report the clients on market fluctuations and risk
- Monitors the clients’ investments
- Pitch for the new clients
Stockbroker – Current and Future Job Prospects
Currently, India has 20 active stock exchanges with over 7000 companies associated with them. More than 6500 brokers registered with SEBI. With the increasing craze of online trading, the demand for stockbrokers is growing at a tremendous rate. On average, there is 11% annual job growth in this sector. The salary package of a stockbroker varies from INR 2 lakh to 7 lakh per annum, depending on the years of experience and professionalism. They also receive additional bonus and salary according to their performances from the brokerage firm.
Stockbroking industries have several challenges but how well the brokers tackle these technical issues matters the most. Problems are mainly for those who are new to the field. However, with better knowledge and understanding and impressive skills, it is easy to catch up with new clients. Introduction of new technology and highly-equipped applications have made the tasks of stockbrokers easy.