How to become a Stock Broker

Stock brokering involves the buying and selling of shares for clients on commission basis. But most big broking firms don’t restrict themselves just to shares. They offer mutual funds, insurances, commodities, currencies and other financial products as well. Most firms recruit freshers as assistant relationship mangers (ARMs) and relationship managers (RMS).


These professional job is to be in constant touch with the clients, inform them of market movements and advise them on the amount of risk they should take. They are the one-point contact of the clients. They take orders from clients to buy and sell at specific rates. Besides working with existing clients, they also solicit more business for the company. An ideal RM would be someone who raises the clients net worth.


Skills
 

• Love for the markets
• You should understand the pulse of the Sensex and the Nifty n you should be a people’s person
• Trust and integrity are an absolute must, otherwise you can hurt the client’s prospects and the company’s reputation
• You deal with people’s life savings, so giving the right advice is critical

How do I get there?
Most brokerage firms hire ARMs and RMs from noted MBA institutes. In addition to your business degree, you could arm yourself with a certificate such as the NSE’s Certification in Financial Markets and BSE Certification on Derivatives Exchange. More details at http://www.nseindia.com/content/ncfm/ncfm_whyncfm.htm and http://www.bseindia.com/training/bcde_test.asp


Important facts

• The stock market is directly connected with economic growth, so higher GDP means higher salaries
• The market will eventually grow as India is on a growth trajectory
• One mistake can cost clients heavy, so pressure is high
• Dealing with clients in the bear run tests the mettle of an ARM/RM
• The work can affect family life