Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

Stockbrokers 2023– Welcome to the dynamic world of bulls and bears

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Today we are witnessing an economic turn that none of us has ever witnessed before. The Covid 19 has left its mark with enormous blackouts and shutdowns all over the globe that resembled a word war. Yet few of us saw a light at the end of the tunnel. That light was provided by Stockbrokers. The rallying off the share market to new heights in the stock market is the turning point of the Indian economy into a well-developed economy when every other economy, even those off west faltered in the face of the epidemic.

Stockbroking and Stockbrokers

Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

Stockbroking is the process of buying and selling stocks or other securities. The people who do stockbroking are called Stockbrokers.

Stockbrokers are agents or traders who trade stocks on the behalf of their investors in return for the commission they get from their clients. They are also called securities sales agents and commodities sales agents.

The place where Stockbrokers do the trading is called the Stock Market. Some of the stock trading platforms are Sensex, National Stock Exchange in Mumbai, New York Stock Exchange, or NIKKIE in Tokyo. Nowadays they can trade on computers through online stock trading also.

Stockbrokers provide a variety of services to their individual clients, companies, or organizations. They give advice concerning current or prospective investments, as well as assistance in portfolio investments. As a stockbroker you must be familiar with the wide range of products available in the stock market. They must be able to analyze company finances and provide recommendations regarding public offerings, mergers, and acquisitions.

Types of Stockbrokers

Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

1. Full-Service stockbroker

A Full-service stockbroker provides personal service to his or her clients like providing them with necessary information and recommendations for trading based on personalized research. They also provide information to their clients that is available to brokerage services.

Full- time broker work at a full-service firm such as Banks or financial companies like JP Morgan Stanley, Merril Lynch. The Brokers are provided with a comprehensive training package that includes sales & product training as well as education in administrative procedures and compliance regulations.

2. Discount Stockbroker

A Discount Stockbroker takes orders from the clients. He does not offer any advice, analysis or research services. Discount broker firms are geared to providing effective services for walk-in clients and usually pay their brokers a flat salary.

Discount stockbrokers have a much broader base of experience than many full-service brokers. They are expected to provide a broad array of research and services, including basic technical and fundamental analysis,rollovers,stock options, margin accounting,derivatives,bond-ladders,mutual funds, closed-ended funds, partnerships,charitable gifting, exchanges, and many other areas of investment, retirement, and charitable planning.

3. Bank Stockbrokers

Technically, bank stockbrokers who work at banks are full-service brokers. However, they are often given lower payouts on their commission in return for having access to the bank’s customer base.

At one time, Bank brokerage positions were viewed as dead-end jobs that were available to brokers who failed everywhere else. However, lately this perception has disappeared with the growth of this segment.

Most banks now employ in-house investment consultants who offer non-FDIC insured products and services. Many banks are now asking their brokers to cultivate clients from outside the bank. Brokers often must make an extra effort to get their clients to understand what they offer.

What is the Role of a Stockbroker?

Roles and Responsibility of a Stockbroker


Most of you who opt for a career as a stockbroker will be required to work in an office environment.  A stockbroker job description includes keeping an eye on the stock market daily and measuring the changes in stocks & shares. He is required to sell and buy stocks on behalf of his company and make profitable investments for his clients.He is responsible for managing stock portfolios. He must be able to analyze the stock market and make future predictions. Here are the roles and responsibilities of a stockbroker.

  • Customer Service

The stockbroker’s job description includes creating his own client list irrespective of the size of the work where he works and must spend most of the time in customer recruitment and customer service. His work involves calling his clients and follow-up. He must be able to maintain a long and trustful relationship with his respective clients. He is required to update their portfolios and look for investment opportunities.

  • Advisory

A stockbroker must disclose the correct information about investment recommendations and risks involved in it.

  • Trading

Stockbrokers are responsible for trading stocks, buying, and selling them on behalf of their clients. Trading is done electronically or on the physical trading floor or by phone.

  • Fiduciary Duty

Since a stockbroker’s earnings are mostly commission based, he is liable to follow the rules laid down by the regulatory authorities to avoid conflict with his clients.

How to become a Stockbroker?

Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

In case you really want to become a stockbroker, you must possess or attain certain skills to become a stockbroker. Here are some of the essential stockbroker skills that are required for you to become a stockbroker.

  • Research and Critical thinking skills

As a stockbroker must possess problem-solving skills and must have the ability to identify and mitigate risk factors to generate profits as a stockbroker. You must be able to analyze, research and find solutions to challenges that could pose problems for making returns. Similarly critical thinking skills are necessary for analyzing various trade factors and making decisions that can affect the outcome of investments.

  • Communication skills

Stockbrokers must possess excellent written and verbal skills to work effectively. They must be able to convert mathematical and statistical data into understandable information which are essential for portfolio management and analyzing investment strategies.

  • Strategic Planning

Traders must make strategic decisions regarding the securities they buy and sell.They must have the ability to analyze and plan for investment and trading strategies to be successful. You must be able to plan the best strategies for purchasing stocks, reduce risks, and generate profits while working in a Brokerage firm.

  • Wealth Management

To be a successful broker you must be able to leverage industry knowledge to help your clients maintain and accumulate financial wealth. You must stay up to date on current investment opportunities to give them the best possible advice.

  • Mathematical skills

You must possess excellent mathematical skills and must be able to calculate percentages, dividends, and profits quickly to be able to stay competitive in the stock market.

  • Persuasion Skills

As a stockbroker you must be able to persuade your clients to listen to you and convince them with their recommendations.

  • Technical Skills

Stockbrokers must possess technical skills like the ability to use computer software and digital trading applications regularly in their career. He must have thorough knowledge to compute statistics on company stocks and analyze options.


Educational Qualifications to become a Stockbroker

Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

Like any other profession you require an appropriate level of education to fulfill stockbroker job requirements. For most of us this may mean an undergraduate degree. But we must complete a graduate program to improve our marketability and increase advancement opportunities. Stockbrokers and traders who have earned a master’s degree are coveted a lot in the industry and earn more money than those without one. You must also possess a license to work in this field.

Here are the steps for you to take to become to become a Stockbroker:

Step 1: You must enroll in a relevant undergraduate degree program

Step 2: You must complete an internship with a financial or brokerage firm.

Step 3: You must find a Professional Employment and Join a Professional Organization.

Step 4: You must Register as a representative of your firm with FINRA.

Step 5: You must complete an accredited Master’s of Business Administration Degree


Step 1: You must enroll in a relevant undergraduate degree program 

Most entry level stockbroker and trader positions only require an undergraduate degree. This field does not require a specific major, so you can choose a degree option that suits your specific interests. However, you must major in finance or a business-related subject like accounting,business,finance or economics. These courses are generally preferred by employers, especially large firms. Online programs are also available.

Step 2: Complete an Internship with a Financial Firm

You must apply for an internship as an undergraduate student to gain invaluable experience. Many large and small brokerage firms and investment banks frequently hire summer interns and later offer full time employment to the successful students.

These internships offer a variety of benefits to the students in their career path to become stockbroker and trader like Real world training and work experience, opportunities to apply academic theory and best practice, gaining experience in working with a financial team, Skills development, Networking, and gaining access to potential professional mentors.

Step 3: You must find a Professional Employment and Join a Professional Organization

Unlike other professions, stockbrokers and traders must first find employment before they can get their license. Therefore, you will have to search for jobs immediately after completing your graduation.

Students and new professionals must strongly consider joining a professional organization. These organizations are available at State, national and international level. The members get exclusive benefits like resources,discounts,training,certification programs and networking opportunities.

Here are some of the prominent professional associations and societies for stockbrokers and traders.

  • Association of national exchange members of India (ANMI)
  • National Association of Stockbrokers (NAS)
  • National Stock Exchange (NSE)
  • International Business Brokers Association (IBBA)
  • National Association of Investment Professionals (NOIP)

 Step 4: You must Register as a representative of your firm with SEBI.

Securities and Exchange Board of India (SEBI) is the protective, regulatory and development authority of Stock and Derivatives market in India. Every brokerage and Investment firm must register itself with SEBI to start their business in Indian stock market.

Step 5: You must complete an accredited Master’s of Business Administration Degree

Most Stockbrokers’ careers can receive a tremendous boost if they choose to pursue a degree or diploma course in Master of Business Administration (MBA) or obtain a degree in Chartered accountant (CA) or Chartered of Financial Analyst (CFA). A MBA degree in finance is greatly preferred by employers and can help the candidates to reach a higher position in stockbrokers. It entitles them to more advancement opportunities, better compensation, and large signing bonuses when hired.

Here are the 7 Best degrees for Stockbrokers that can help them in their career growth.

1.Business Administration and Finance

Business administration with a specialization in finance is the first choice for entering the stock market as a stockbroker. The undergraduate degree programs in this filed focus on courses like finance, corporate finance income securities, derivatives and the translation of accounting statements.

2.Investment Management

Stockbrokers with a degree in Investment management can work with portfolio managers to buy and sell securities for their clients. The undergraduate program of Investment management covers topics like investment analysis, risk analysis, portfolio management, investment strategies, economics, business math, and accounting.

3. Economics

A degree in economics can help you as stockbroker understand the volatile nature of the stock market as it depends on the health of the economy. The subject also helps you understand how companies gain or lose leverage within economic development. The Bachelors’ degree programs in economics focuses on economic development, economic policies, and banking and finance. The master level in economics can prepare the stockbrokers to focus on fields like national and international trade market operations to help prepare them for potentially lucrative careers in brokerage firms, investment firms and other trading institutions.

4. Statistics

Statistics covers topics like data analysis, probability and statistical computing and can help you develop the skills and knowledge that stock trading requires. A degree in statistics helps stockbrokers who perform stock analysis to develop trading strategies and navigate the risk in the market from a degree in statistics to demonstrate their expertise.

5. Computer Science

Many brokerages’ firms and other financial institutions that employ stockbrokers often hire candidates with a degree in computer science as it helps the stockbroker to apply skills to many aspects of stock trading. A degree in computer science can help the stockbrokers in computer systems security, managing databases, creating software applications and applying innovative technology to your career in stock trading.

6. Data analytics

Data analytics is very useful for stockbrokers in their career as it helps to guide their clients to invest in securities that offer the best possible returns. A bachelor’s degree in data analytics can cover a range of topics like economics,statistics,computer science, information technology, and information management. Stockbrokers who pursue a master’s degree in data analytics develop skills in areas like data collection, automation systems, data visualization and analytics algorithms.

7. Applied Mathematics

The bachelor program for applied mathematics can help you develop skills and expertise in areas like differential calculus, programing,mathematical and statistical software applications and logical reasoning. Stockbrokers  can further advance their skill set with a master’s degree in applied maths and learn in depth concepts in mathematical and statistical computing, modelling mathematical data and performing processes using technical applications.

How to be a Stockbroker in a Nutshell?

  • You must register yourself with the stock exchange depending upon your dealing in the securities listed at different stock exchanges.
  • After that, you must pass a written test & then undergo training that includes subjects such as capital markets, accountancy, portfolio analysis, etc. to become a member.
  • You must deposit a certain amount with the stock exchange as security for membership. Membership will be given after analysis that you are able to operate as a broker.
  • You must take a BSE certification in derivatives exchange & NSE’s certification in Financial Markets.


To become a member of SEBI, you will have to pass the written entrance test and then undergo a training program that includes subjects like accountancy, capital markets, securities and portfolio management and so on. Membership is only given after ensuring that the person will be able to operate as a broker.

Some of the entrance exams that are available in this field is:

  • BSE Certification on Central Depository
  • BSE Certification on Derivatives Exchange
  • BSE Certification on Currency Futures
  • BSE Certification on Securities Markets


Top Colleges in India where you study stockbroking:

  • Institute of Financial and Investment Planning, Mumbai
  • All India Center for Capital Market Studies, Nasik
  • Institute of Company Secretaries of India, New Delhi
  • Institute of Capital Market Development, New Delhi
  • Mumbai Stock Exchange Training Institute, Mumbai
  • Institute of Chartered Financial Analysts of India (ICFAI), Hyderabad

Why should you become a stockbroker?

Stockbrokers 2023-- Welcome to the dynamic world of bulls and bears

Current Job Outlook

Today a stockbroker can progress up to senior-level and get a good amount of compensation. He must learn and apply sales techniques to build a large client base with numerous portfolios. He must build a trustworthy relationship with clients to be successful. Few factors that affect the job growth of working experience in the stock market firm, education, and geographic location.

Stockbroker jobs and salaries

Junior Stockbroker

A junior stockbroker possesses an experience as 1 to 4 years. He manages the stock accounts of individuals and provides them with assistance in investing in the shares of companies that ensure more profitability. A junior stockbroker can easily earn up to Rs300,000 per annum.

Senior Stockbroker

A stockbroker has working experience of 10 tom 20 years. He has a vast knowledge of the stock market and knows how certain circumstances can affect the value of the shares of various companies or organizations. A senior stockbroker can easily earn more than Rs 500,000 per annum.


In abroad you can get a starting salary ranging from 24,000 pounds to 35,000 pounds a year.

Where do Stockbrokers work?

Stockbrokers manage individual investment accounts as well as work for large corporate entities. Since every company and organization today needs some level of financial investment advice, there are a lot of entry level stockbroker jobs available.

Given below are a few of the industries that do stockbroker hiring.

  • Securities, commodity, contract, and financial Investments.
  • Credit Intermediation
  • Non-depository credit Intermediation
  • Company and Enterprise Management
  • Agencies and Brokerages
  • Insurance and Employee Benefits
  • Pipeline Transportation off crude oil
  • Computer system Design
  • Farm Product Raw material wholesalers
  • Professional and commercial equipment and supplies merchant wholesalers


Since most of the companies are in urban areas, stockbrokers mostly work in metropolitan areas.

Job Profile of the Stockbrokers

Here are some of the professions where stockbrokers can work.

  • Investment Bankers
  • Investment Banking sales agents and traders
  • Floor Brokers
  • Financial Service Sales Agents
  • Accounts Managers
  • Assistant Branch Manager


  • Investment Bankers

Investment Bankers are responsible for underwriting, or connecting businesses that supply money to investors. Some of the services that these professionals provide are initial public offerings, mergers and acquisitions. They are responsible for estimating the worth of a company and ensuring that the company meets all legal requirements to become publicly traded.

  • Investment Banking Sales Agent and Traders

Investment banking sales agents are responsible for carrying out client’s buy and sell orders for stocks, bonds and commodities. They also trade on behalf of the company they work for.They work for commercial banks, hedge funds and private equity groups.

  • Floor Brokers

The Floor Managers work on the floor of a security or commodity exchange. These professionals are responsible for price negotiation, making sales and forwarding the final price to the traders.

  • Financial Services Sales Agents

Financial Services sales agents are consulted by both individuals and businesses on various banking,security,insurance and related services. They also inform the potential clients and explain the services offered, including managing loans, individual retirement accounts and credit cards.

  • Accounts Manager

Account Managers maintain relationships with specific customers. They must have a clear understanding of the products and services offered and are able to make targeted pitches to new clients.

  • Assistant Branch Manager

Assistant branch managers at banks hire, train, and supervise customer service representatives. Hey also monitors financial activities,performs audits, reviews reports and manages cash levels.

Here is the list of the top brokerage firms and online trading companies in India where you can work as a stockbroker.

  • Angel Broking limited
  • Reliance Capital Ltd
  • HDFC
  • JP Morgan
  • ICICI Direct
  • India Infoline
  • Indiabulls
  • Sharekhan Limited
  • Kotak Securities Ltd.
  • Karvy Consultancy


The current economic scenario where the stock market is bullish there is a tremendous scope for a stockbroker in India. With more and more financial companies entering the Indian market there are a lot of stockbroker jobs near you and you can progress up to senior level and earn attractive compensation. It is seen that the salary of an experienced stockbroker is double that of the entry level stockbroker.