For a fee or commission, stockbroking is the process ofpurchasing and selling stocks and other assets on behalf of ordinary and
institutional customers over the counter or through a stock exchange. Retail
investors coexist with institutional stockbrokers and fund managers in the
world of finance.
What is the role of a stockbroker?
Stockbrokers handle their customers'financial holdings and interact directly with them. They build new enterprises
while working with their current customers.
Therole involves:
· Keeping updated on the most recent financial andtax laws
· keeping track of stock market performance
· Doing detailed market analysis and research.
The most crucial aspect of thefunction of stockbroking ismaking sure that the client's needs are understood and providing the best
recommendations for their investments.
Brokers must be truthful and provideall relevant information, including risk. Giving false information and
exaggerating the situation is unacceptable. Additionally, they must actively
seek out clients, market the services offered by their company, and maintain
those connections. Cold calling in addition to networking can be used to
accomplish this.
Types of Stockbrokers
● Full-servicebrokers - give customers personalized care and share vital insider knowledge
exclusively available to full-service customers. They provide individualized
research and investing information.
● Onlinebrokers - conduct analysis and offer a client list of stocks as well as
investing news, charts, and analysis
● Discountbrokers - merely carry out their clients' requests. They don't provide
consulting, investigation, or analytical services.
Skillsrequired to be a stockbroker:
· Ability to adjust and work in a fast-pacedenvironment
· Excellent interpersonal and communicationskills, as well as good bargaining and presenting abilities
· Initiative
· Determined
· Can handle stress under pressure
· Good salesman
· Have great customer service skills
· Good with numbers
· Good in research and analysis, as well as thecapacity to swiftly process and remember information
· Great time management skills
· Has a good knowledge of economics and accounting
· Has the ability to build relationships
· Risk taker
· Have strong negotiation skills
· Problem solver
There are no official educationalprerequisites to become a stockbroker; nevertheless, you can enter this field
through apprenticeship programs like the higher or degree-level financial
services professional or investment specialist programs.
You must demonstrate to employersthat you comprehend how financial markets operate if your degree is not in a
business or finance-related field. It could aid in locating employment with an
investment bank or other organization.
Above all, you must continue to gettraining throughout your career and stay up with any changes to policies and
laws.