A Broker is an individual (appropriately certified or licensed) or a professional firm authorized to deal in buying and selling of shares and other securities, on behalf of a person or an institution who are clients of the stockbroker. The broker acts as an agent on behalf of an investor who owns the stock/shares and offers his services to broker the best deal for his client, whether it is for sale or for purchase of stock.
This brokering service is rendered through a contractual arrangement that entitles the individual or the institution acting as the stock broker to receive a brokerage or commission for service rendered for every completed transaction.
In the share market some shares may be considered to be of high value and some of negligible value. Since the share and securities market is very volatile, a cunning watch on the movement of share prices and other securities and mutual funds has to be constantly maintained. This is the primary duty and responsibility of a share broker.
He maintains a watch on the trends in the share market scenario and advises his clients appropriately regarding disposal or acquisition of stock assets.Requisites for becoming a broker can be classified as follows:-
Tips On How To Become A Stockbroker
The Right Degree
This is an essential requisite for being a broker. Have a college degree in commerce or economics, topped up with a certification as a stock broker, and you are good to go!
The Mecca of stock trading is the Stock Exchange. However, one must be registered or licensed to be able to trade as a stock broker in a stock exchange. With your degree, it would be easy for you to do so and earn a good name in the field.
Develop A Keen Interest
The primary requisite to become a stock broker, and a successful one at that, is a basic instinctive interest in the stock and financial market. Keep a tab on the ups and downs of the market on a whole and that of individual firms. Show interest in discussions based on the same so that you can add to your knowledge and learn more. Follow debates based on the stock market, it would help you to learn a lot about the field.
Attach With A Firm
At the outset in his career, the stock broker must attach himself to a stock broking firm where he could be employed as a junior investment adviser.This will provide the required exposure and opportunity to study and learn the intricacies of stock market trends and trading, besides the various causes that are responsible for the upward or downward movement of shares and other securities.
A junior broker can progress to the position of a senior investment adviser and thereafter could even become an associate, or strike out independently.
A broker can also be referred to as an investment adviser. Individual clients or institutions desirous of investing sums of money may not have knowledge of the stock market and the value of shares of various corporate institutions – Government or private.
Even if they do have the requisite knowledge, they do not have the time to keep a hawk’s eye on the upward or downward movement of shares or other investment instruments. Thus, it is your job to keep updated and inform your clients of the changes taking place in the market.
Diligence Is The Key Essence
One of the core requirements when beginning to operate as a stock broker is a diligent study of financial market trends that have a direct bearing on the value of stocks. Equipped with this knowledge a stock broker will be able to advise his client in making the correct investment decisions.
Changes in the value of stocks can take place due to various reasons and a good stock broker has to keep himself updated and study information on trends regularly aired on television channels, available in the print media (financial newspapers, magazines, investment dailies etc.) or at the stock exchange. And as soon as you do this, you have to diligently inform your clients of the same.
Try the above mentioned tips and steps. They are bound to make you an expert at the field– and a successful one at that! These steps are so effective that you would be able to become a broker instantly and with ease, that too, without any issues or problems occurring for the same. These steps are really simple but very efficient. Having conquered them all would guarantee you a good name and place in the market as a broker.