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How To Become A Stock Broker
The stock market is often viewed as the best way of getting huge returns on investments and so everyone is interested in trying their luck with it. But not everyone interested in earning money can understand the nuances of that complex field nor do they have time to keep track of the performances of all the stocks in the market. This is where the role of a stock broker comes in.
A stock broker is defined as a regulated and registered professional who is qualified to buy and sell stocks and derivatives in the secondary market on behalf of his clients.
Ways To Become A Stock Broker
The main responsibility of a stock broker is to draw up an investment plan, in terms of the stock market arena, for his clients keeping in mind the financial needs and targets of the client. The clients for a stock broker can either be individuals or companies. The stock broker needs to keep a constant track on the stock market and keep studying the trends in the market so as to help his or her clients get the best return on their investments.
Improving the Client Base
Improving the client base is the first and foremost target of a stock broker. This includes both bagging new clients and holding onto the existing ones. A major way of attracting new clients is through seminars. Stock brokers often can conduct seminars in small communities on topics like investments for children, retirement etc. There is a scope of at least some of the attendees becoming prospective clients.
Existing clients would stay on if the stock broker shows them good returns on their investments. Apart from this, it is important to build good relationships with the client. While drawing up a portfolio for the client it is important to take into consideration the client’s inputs and not force them into any kind of investment that the client is not comfortable with.
Existing clients always prove to be a great source for new clients. Once they see healthy returns from you they would go on and advice their friends and family to appoint your services for them too.
A stock broker needs to hold a bachelor’s degree either in finance, business, commerce, economics or accounting. A master’s degree in management is a great addition to your portfolio. Most countries often have some kind of an examination that you would need to qualify in order to get a license to become a stock broker.
Once out of college the aspirant can look for work in stock brokering firms. A deeper study on country specific regulations on becoming a stockbroker is a must for you to launch yourselves into the career.
Important Traits of a Stock Broker
Loyalty to the client is one very important trait a true stock broker must possess. The benefits to the client should always be prioritized to the benefits of his own brokerage company. The client should always be given well informed advices and the stock broker should always perform any trading only upon the authorization of his client.
Stock brokers need to have a very high level of work ethics as the job involves rotation of huge amounts of money. The clients trust you with their money and it is your core responsibility to keep up the trust.
Keeping a constant watch on the stock market, ability to analyze the performance of every stock and the ability to match these to your clients’ needs and risk taking abilities are some more qualities that are a must. All in all, a career in stock broking is very rewarding once you are well equipped with all the above qualities.