Career in Stock Broking
If you passionately follow the markets, understand how the Sensex and Nifty work, and have a knack for handling finances, then a career in stock broking might just be for you.
What does a Stock Broker do?
Stock brokers are involved in the buying and selling of stocks in the market, mainly for their clients. They always remain in touch with their clients, constantly updating them about the fluctuations in the market and advise them when to buy & sell and at what rates. At the same time, stock brokers also ensure that their stock trading company also makes maximum profit in the long run. You can work as a full service broker (for eg. with ICICI Direct or Sharekhan) or as a discount broker (with firms like RKSV or Zerodha.)
With the market in India growing steadily, it is obvious that those who deal in market shares are going to have rewarding careers with vast opportunities for growth. A career in share market might be a very good option indeed.
All the operations today are computerised, with highly trained and qualified specialists keeping a close watch on the market. You can survive in the stock broking career only if you have a knack of thinking on your feet and being adaptable in an ever-changing environment.
The National Stock Exchange or NSE provides nationwide facilities with access to investors all over the country. The automated, screen-based trading system using state-of-the-art technology makes market operations transparent.
Eligibility Criteria for Stock Broking
The minimum educational qualification required to become a stock broker is a graduation with at least 2 years of experience in a stock broking firm. A sub-broker (the previous stage of being a broker) needs to have passed the class 12th standard to be eligible for his job. Minimum age: 21 years.
This business is an integrated one. Jobs in stock broking are not your only option in this field. The share market requires the genius and capabilities of specialists from various fields from economists, who know the ins and outs of the market, to financial planners, who can give you the right kind of advice on stocks. You also have the option of becoming a financial manager , analyst or a market specialist.
Although, there aren’t stock broking courses as such, you need to have a background in the specialised fields of commerce, business administration of economics to become a professional stock broker. To have an even better shot at joining this illustrious and taxing career, one can choose to pursue a post-graduate degree in commerce or economics.
Financial managers with a Master of Business Administration (MBA in Financial Markets) degree would be preferred as they would have specialised knowledge of the field.
How to become a Stock Broker
First and foremost - you need to register and become a member of a stock exchange. You must also register with the Securities and Exchange Board of India (SEBI). SEBI governs all the stock brokers, protects the rights of the investors and acts like a regulatory body of the ever-fluctuating markets.
Stock Broking Career Prospects
There were about 20 active stock exchanges in India with 7000 listed companies, 6500 brokers and 538 investment bankers registered with the SEBI. As per a Mint report, dated 20 May, 2014, 15 of the 20 stock exchanges in the country have opted to exit the business altogether. The 5 that will continue are the Bombay Stock Exchange (BSE), United Stock Exchange (which agreed to merge with BSE), MCX Stock Exchange Ltd (MCX-SX), National Stock Exchange (NSE) and the Calcutta Stock Exchange.
Prospects for the stock broking business are bright and for those who are qualified to handle this business and have the necessary personality traits to cope with it, the job openings are many.
As of November, 2014, the Bombay Stock Exchange (BSE) was rated 10th globally (market value-wise) among world’s stock exchanges, as revealed by data from the World Federation of Exchanges. Close behind is India’s National Stock Exchange (NSE), ranked 11th. “It is a matter of time before we make it to the top 5 stock exchanges in the world, said Kalpana Morparia, chief executive of J.P. Morgan India, told Wall Street Journal on 28 November, 2014. If the market cap of Indian companies keeps growing at its recent pace, the BSE and NSE could soon overtake Germany’s Deutsche Borse and China’s Shenzhen Stock Exchange. In short, opportunities in this field are going to be aplenty!
Salary/ Pay package
While not every stock broker ends up becoming a Warren Buffet, you stand to earn well as a stock broker. The salary package varies from earning $34k to $154K
Stock Broking Institutes
Courses in stock broking and capital market and investment, investment planning and several other related courses are offered by a lot of training institutes in India.
Here is a list of colleges in India offering stock broking courses:
ICSI House, 22,
- Institute of Company Secretaries of India
Institutional Area Lodhi Road,
New Delhi 110 003,
EPABX LINES: (011) 41504444, 24617321-24-, 24644431-32, Fax: 24626727
Course: Post-graduate membership course in capital market and financial services
1965, Arya Samaj Road,
- Institute of Capital Market Development
Karol Bagh, New Delhi-110005
Course: One year postgraduate programme in fundamentals of capital market development.
J. D. C.
- All India Centre For Capital Market Studies
Byte Institute of Management Studies and Research,
Course : One year post graduate programme in capital market studies, in collaboration with the Mumbai Stock Exchange Training Institute, leading to a diploma from the University of Pune. The course is open to graduates through an all-India selection process.
Stock Exchange Building,
- Mumbai Stock Exchange Training Institute
Course: Certificate courses are run periodically throughout the year
B/303, Ventex Vikas,
- Institute of Financial and Investment Planning
M. V. Road,
Course : One year correspondence cum lecture course leading to a diploma in financial and investment planning
Road No. 3, Banjara Hills,
- Institute of Chartered Financial Analysts of India
Course: Courses on Chartered Financial Analyst Equity Research.
The institute is also planning a number of other related programmes
S- 11, Adarshini Plaza,
- The Orion Institute of Capital Market
91, Adchini, Aurobindo Marg, New Delhi
Plot 82, Sector - 17,
- The UTI Institute of capital Market
Vashi, nave Mumbai - 400 705