There are various kinds of brokers in the financial market; most of them deal with stocks and mortgages. A stock broker is a link between potential investors and the global investment market. They are merely advisors to their clients and act as a medium of information directed towards sound investments.
A stock broker performs his/her duties in a brokerage house or a firm, where they can sell and buy stocks directly to and from the market on behalf of their clients. Here are a few tips on how to become a successful stock broker.
How To Become A Stock Broker
Learn About the Stock Market
To become a stock broker one must learn to comprehend the mechanics of the stock market. The entire operation of the market is very intricate and may require years of experience to fully understand. However, to learn about the general concepts on how the market works the financial news channels and newspapers is an adequate source.
To understand how the market operates, different stocks must be followed according to its corresponding industry or sector. Participate in virtual market investments, with virtual capital to sharpen your investment skills. Various websites over the internet provide cost free registration to virtual markets, which mimic the existing stock market.
Finance Related Education
A Master’s degree in finance is recommended to fully grasp the concept; however, a bachelor’s degree from good university can suffice. Apart from expensive degrees from universities, there are other modes of education directly provided by the brokerage house and the Stock Exchange as well.
There are various courses related to the stock market, however, to understand them, you would require a bachelor’s degree in Finance. Therefore to become a stock broker, resilient planning is required along with hard work and dedication. Along with this comes practice of basic Math, Statistics, and Economics –Micro and Macro.
The Broker’s License
Depending in the country you are in a Brokerage license can either be issued by the government or the stock market itself. A national stock market association is present in all states who deal with stocks in the market. They conduct year round examinations for interested and qualified candidates to ensure a continuous growth in this trade.
Depending on the market a broker needs to be working within the brokerage house for at the most 6 months before he/she can sit for a license exam. If and when the exam is passed the broker is then registered as a securities agent by the governing Financial Regulatory Authority. Once registered a broker is licensed to deal with all the stocks in the market.
Difference between a Good Broker and a Great Broker
A good broker is qualified, experienced and well suited to advise clients on sound financial investments and diversify their risk by investing in portfolios. However, a great broker in pursuit of grasping the entire industry can pursue CFA – Chartered Financial Analysis.
At the same time a great broker has to indulge themselves into new and innovative financial courses to sharpen their skills. Without incessant progression a good broker can never be a great broker.