Stockbrokers, or stock brokers, are finance professionals who are employed in stock broking firms. Many stock brokers have their independent broking business, or are sub brokers of a major brokerage house. Stock brokers buy and sell shares or securities on behalf of their retail clients, as well as large institutional clients.
A stock broker generally joins the service as a trainee finance professional. His job is to assist senior brokers in taking calls for clients. He has to be alert and have qualities such as presence of mind, stamina and dedication to satisfy his clients with good service. Trainee stock brokers need to apply their knowledge and suggest strategies and plans to their clients that can give them handsome profits in the stock market. These stock brokers see the market movement and try to draw conclusions from them. Tips and suggestions given to clients need to be backed by strong fundamental as well as technical research, and the trainee stock brokers receive training in the field of stock research from their seniors. This was the basic job description of a trainee stockbroker. However, with little experience, the job includes slightly specialized tasks which have been mentioned below.
Technical and Fundamental Analysis
The job profile will include technical and fundamental analysis after the trainee gains basic knowledge of stockbroking. With technical analysis which involves study of technical charts, these brokers would be able to give support and resistance points to the traders. They can suggest top picks with the help of volume analysis which is a part of technical analysis. Fundamental analysis is essential for clients who are looking for long-term investments.
Preparing Research Reports
Trainee stock broker job description in the advanced stage shall consist of preparing research reports which will help investors know the earnings, business model and financial position of companies belonging to various sector. Research reports of main brokerage firms are closely followed by thousands of investors and hence, stock brokers play a crucial role in investor education.
In many brokerage houses, stockbrokers work in a research team which concentrates on select sector and stocks. Finance, banking, information technology, metals, oil and gas, aviation, pharmaceuticals are the sectors in which stockbrokers generally show a lot of interest. Going ahead, trainee stock brokers can become assistant managers, managers and head of research of any sector which they follow closely.
Trainee stock brokers initially work as assistant portfolio managers and aid wealth managers in preparing client portfolios by taking into consideration their risk profiles. Trainee stockbrokers learn how to manage client portfolios by exiting from under performing stocks and adding cheap stocks, to give maximum returns to their clients.
Face to face client interaction is also one of the most vital part of the job. It is only after meeting clients that the brokers would be able to choose investment options and stocks for them.
As said above, trainee stockbrokers can occupy high level positions in broking firms and enjoy great career growth. Salaries are no bar for right candidates in this field. Trainees can start with anything between $35,000 to $50,000 per year depending on the school from where they graduate. Experienced brokers can make anything between $60,000 to $120,000 per year and more.
A graduate or postgraduate degree in mathematics, accounting or finance can work as the best launch-pad for a career as a stock broker. Learning on the job is important, and with keen interest, you will make tremendous progress here. So, buck the trend and take your career to great heights. Good luck!