Career As A Stockbroker: Become The Next Big Bull!

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If you were heavily influenced by Pratik Gandhi's role in Scam 1992 and feel you can make a career in share market, then stockbroking as a profession is the ideal option for you. Becoming a stockbroker requires a keen interest in finance with the expertise of handling other people's money. Stockbroking is a kind of financial counselling, which can be rather intensive and demanding at times. Nonetheless, many fresh graduates aspire to be a big name in the stock market. This career option today provides more possibilities than ever before, and thus, it becomes necessary to answer all queries associated with this profession.

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Required qualification to become a Stockbroker

While working as a stockbroker may appear to be a glamorous career in financial markets, many first-year brokers leave the industry since the position generally takes a significant level of devotion, involves long hours, and may be extremely stressful. However, if you are able to sustain in this industry, then numerous laurels awaits your presence.

While no particular personality traits are necessary to become a broker, the inner will to succeed and handling rejection forms a major part of the successful broker's life. Given that the majority of the day is spent on the phone selling stock ideas to new or existing clients, these are crucial traits to possess.

• There are no particular educational requirements for becoming a stockbroker, however many businesses do need a college degree.
• While some brokers work at full-service businesses and cater to high-net-worth customers, others work at discount brokers and serve all sorts of individual investors.

Academic Qualification

As mentioned above, many firms prefer candidates with at least a bachelor's degree who are aware of fundamentals of capital market, preferably in business or finance to pursue stockbroking as a career option. Furthermore, a master's degree distinguishes a candidate from the throng by implying additional communication and financial abilities that might be useful on the job.

Types of Stockbrokers

1. Full-Service Broker

Full-service brokers employed by firms get a complete training programme that includes sales and product training, as well as instruction administrative processes and compliance laws education. Along with this comes an office space, business cards, a guaranteed income (or a commission), and a high sales quota that they are required to reach in a very short time.

Successful full-service brokers eventually quit these businesses to work for independent brokerage firms. These companies usually provide a broader range of products and services and do not force its representatives to market any exclusive items. They also often provide significantly greater commission payouts than full-service businesses, as well as a warmer and friendlier environment. They are, however, often only capable of providing back-office administrative support and do not provide amenities such as office space. Those who work for these companies are responsible for all of their own expenditures and overhead.

2. Discount Broker

If you're not a natural salesperson but want to try your hand at investing, a discount broker could be an option for you. These businesses are aimed at delivering excellent service to walk-in clients and often pay their brokers a fixed wage (albeit with some minor bonuses or other incentives).

Many brokers who don't make it at full-service companies wind up at discount businesses, where they can truly understand the industry and develop a sense for the markets. Some brokers can ultimately build up a large enough informal clientele to return to a full-service or independent broker-dealer role.

3. Bank Brokers

Many banks, like most discount businesses, search for licensed brokers with prior expertise, but the banking system is so different from the brokerage sector that it generally takes newcomers some time to acquire their bearings.

Brokers that work for banks are technically full-service brokers, although they sometimes get a lesser commission payout in exchange for access to the bank's client base. Bank brokerage roles were long seen to be dead-end employment for brokers who had failed elsewhere, but with the expansion of this part of the brokerage industry, this reputation has virtually vanished.

How to become a Stockbroker in India?

The famous Dalal Street of India witnesses numerous brokers everyday selling and buying variant stocks. To become a stock broker here, you need to submit an application to Membership Services Department, who then will send it to the Compliance, Recommendation, and Membership Selection Committee for approval. Once it is approved, you will be issued the SEBI certificate, and the trading system will be provided. 

Deposit and Net-worth Requirement to become a Stockbroker

Applicable charges for a Financial Broker

• Application Processing Fees: ₹ 10,000+ Applicable Tax.
• Admission Fees:

• • For all segments (except "Only Debt"): ₹ 5,00,000 + applicable tax

  • For the "Only Debt" segment: ₹ 1,00,000 + applicable tax

• Annual subscription fees (Capital Market Segment): ₹ 50,000 per year + applicable tax.
• Minimum transaction costs (Futures and Options segment): ₹ 100,000 per annum + applicable tax.
• Transaction fees (Currency Derivatives segment): ₹ 50,000 per year + applicable tax.

There are more opportunities than ever before in the financial business today for individuals who are ready to work hard and cope with the drawbacks that come with the early stages of this industry. The entire procedure of getting licensed and practicing can be time-consuming and costly, but many people find the financial advantages to be well worth the initial effort.

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