Stock Broker Overview

Do you like taking risks? Do you like playing with your money? Do you want to make a quick million in a short period? If  your answer is in the affirmative, then you can become a stockbroker and the stock exchange is the right place for you.  

 

Of course not everyone can become a registered stockbroker. Why? Simply because it's quite expensive. If you can cough up an exchange fee of Rs 2.41 crore you can procure a broking card. That's not all. You have to shell out another Rs 20-25 lakhs to get registered with SEBI. But, that shouldn't deter you from becoming a stockbroker. You can always work as a dealer or an agent with a stock broking firm. 

 

The stock exchange is exposed to a high degree of volatility. Prices fluctuate within minutes and are determined by demand and supply of stocks at a given time. A stockbroker buys and sells securities on behalf of individuals and institutions for some commission. 

 

As a stockbroker, you could get into private practice or work for institutions. Those who work with institutional investors are also called Securities Traders. As a stockbroker, you could work as a dealer, advisor or securities analyst. Security analysts use their sound knowledge of capital markets to advice companies on floating shares. You could even research, analyse market conditions and draw profit margins on behalf of your client. 

 

As a stockbroker, you have to simplify stock market terms and trading practices for your client, offer financial counselling and also devise financial portfolios. This portfolio also includes securities, life insurance, corporate and municipal bonds, mutual funds, certificates of deposit and other investments. As a stockbroker, you will also offer advice on the purchase or sale of securities. 

 

Back office (administration) forms the backbone of the business. Work is not as fast-paced and exciting as a dealer's. It involves keeping track of the procedural aspects after a deal is executed. The nitty-gritty of the business, like handling pay-in and payout forms a part of the job. 

 

As a stockbroker, your job as a dealer involves contacting clients and executing the deal that has been closed. You should be good at sourcing information. Buying and selling involves convincing clients to buy or sell shares to a client, a big organisation or retail investor. 

 

As a stockbroker, you need to be constantly updated about market conditions. Computer literacy is an added advantage with most of the dealings being computerised. 

 

A stockbroker also does research and analyzes various sectors, industries including the price of a share - whether it is under-priced or overpriced.A stockbroker should be open to criticism and willing to accept failures when you are an analyst. Late hours, stress and tension go hand in hand with the job. 

 

As a stockbroker, you should know that there is very little room for boredom or stagnation in the field of stockbroking. No matter which department you are in, a thorough knowledge of the various sectors and industries, gives you an edge in the business. 

 

Since the industry is performance driven you, as a stockbroker, should be on your toes all the time to keep pace with the market movements. Stress levels are very high and since money attracts all sorts of people, one has to develop a certain amount of insensitivity. 

 

Here is a list of commerce colleges in India

 

If you need more information on stockbroker,  please feel free to contact us Now.