| September 11, 2016 | 0 Comments


Stock broking is brokerage of stocks and securities for institutional clients and retail through over the counter or stock exchange markets. Brokers make profits through commission or a certain amount of fee they charge. Some of them do it by buying and selling the financial securities not for a client but for them to make profits. Individual or a brokerage firm can help book stocks. They are managers or agents working in place of individual customers or big business doing the buying and selling in their seats. They fulfil this by working discretionary, making decisions on behalf of their clients, managing the investments set in their hands, and advising the client. They do intense research and tracking of different financial markets. These are in general, and they will be involved in the following specific activities;

  • Marketing investors to potential new clients.
  • Financial markets research. They do report on the market and company’s performance.
  • They give answers to customers.
  • Advising/instructing investors so as to achieve high/good returns.
  • They manage and review the portfolios of their clients.
  • They Assist in developing strategies for their customers.

stock brokers can divide their popularity according to;

  • Type of security they deal with and assets.
  • The kind of license they possess.
  • Their profession designation.

Licensing of stock brokerage firms requires certain qualifications.The companies need registering with such institutions as Financial Services Authority (FSA) to be a fully accredited broker. Some nationality may dictate one to pass in either series 63 or series 66 coupled with series seven exams with others requiring a pass in FSA review.The following are qualifications considered in England;

CISI level (The Chartered Institute for Securities and Investments) in Management of Wealth.

                CISI level 4 in Advice of Investments.

No specific academic requirement for brokers but only an understanding of how financial markets works. Those holding a degree in any business related courses like economics, politics, accountancy or finance may have an upper hand, however. However, this is limited to working with a person who have a relevant degree and who will be receiving the jobs. Successful/skilled brokers have the potential to speculate on the market trends and predict the most profitable move to make. Choosing the right agent is crucial as one will entitle the broker with his/her investments to make profits but not losses. The broker should, therefore, be able to have active management functions, robust trading tools and above an open and available platform. The main reason one should have a stock broker is that the stock market is precarious, requiring intense speculations to know how and when to trade. For one to be successful in stock broking, he/she must portray the following qualities

  • Good self-drive and determination.
  • Good in judging and analysing potential risks in the market.
  • Good decision making and confidence when executing them.
  • Robust interpersonal skills coupled with a strong relationship with both clients and investor.
  • Honest, transparent and trustworthy in all the undertakings. It should be the essential quality as a lack of this qualities will not attract investors or clients to trade via you. However, to gain/win trust from the two parties, brokers have to be well established and have experience and dominance in this field. For individual merchants, it is hard to achieve this but for brokerage firms like CMC markets in the U.K which have a long history in this undertakings, have easily won it.
  • The ability to work individually and as a team. It Will help one to be calm when working under pressure.
  • Working on an international online platform will be very demanding as one will be required to master several languages. One opt to be good in the critical languages which are widely spoken to eliminate the need for a translator. One may be compelled to reach to clients and investors via phone as they require both writing and speaking skills.

The working hours for brokers is long as one has to keep all the trends in the market also considering the limitation of international time differences which may work against one if potential customers are not localised/from the same region. One, therefore, has to develop a passion for one to be successful.

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Category: Investment

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