How to Become a Stockbroker in India?

Shares, Trading, Sensex, Bid, Ask, IPO, Dividend, Exchange, Yield - do these words remind something? Then welcome to the world of stocks and trading. Want to know how to become a stockbroker? Well, take a seat and read on.

How to Become a Stockbroker In India?

Both the terms Equity and Stocks are used interchangeably but are the same. These stocks are traded in the Stock market. A stock market is a place where buyers and sellers of shares meet. In other words, it is a place where shares of public listed companies are traded.

A stock may be bought or sold only if it is listed on a Stock Exchange. The stock exchange can be perceived as a place, association, or institution where Stockbrokers and traders trade in securities such as stocks and other financial instruments only if the securities are listed in the exchange.

If you want a career as a Stockbroker, there is one fundamental aspect: have a knack for thinking on your feet and be adaptable in an ever-changing environment. In this article, we have collated a list of fields in which students can go as a stockbroker, the qualifications required to become a stockbroker, various Certification courses for stockbrokers and top Institutes providing the stockbroking courses, etc.

Steps to become a stockbroker are as follows:

• Stockbroker Qualification
• Certification Courses for Stockbrokers
• Fields in Stock Broking
• Entrance Exams for Stockbrokers
• Top Institutes Offering Stockbroking Courses

Stockbroker Qualifications

To qualify for the stockbroker position, a candidate needs to have certain educational and physical qualifications.

Below are the qualifications to get the stockbroker license.

• A minimum educational qualification required is Graduation with at least two years of experience in a stockbroking firm.
• A sub-broker (before being a broker) should have passed class 12 to be eligible for the job.
• The minimum age requirement is 21 years.
• Background in the specialized fields of commerce, business administration, or economics to become a professional stockbroker is preferred.
• To equip with better knowledge, one can choose for a postgraduate degree in commerce or economics or Masters of Business Administration (MBA in Financial Markets) degree.

Additionally, after having secured the minimum qualifications and if done any specific courses, these are the following requirements which is mandatory to get working in the stock exchange -

1. A stockbroker and a sub-broker have to follow the guidelines laid down by SEBI for the registration process.
2. The application process consists of information such as Name, Address, PAN Number, other important details, and the name of the stock exchange you would like to trade.
3. In addition, it is worth mentioning the different segments that you are trading in, such as equity derivatives, equities, currency derivatives, and every category to serve, such as trading members or trading and self-clearing members and professional clearing members.
4. Stockbrokers and sub-brokers need to secure a Certificate of Registration (CoR) from SEBI to proceed with trading. As per the stock exchange guidelines, no stockbroker or sub-broker will be allowed to practice until there is a valid CoR from SEBI. A sub-broker can register similarly with SEBI.
5. Membership fees to the stock exchange have to be paid by the Stockbrokers and Sub-brokers. These fees are only applicable until SEBI deems the applicants eligible to become SEBI registered stockbrokers and sub-brokers.
6. After receiving the membership number, one can begin trading in stocks on behalf of clients.
7. The National Stock Exchange of India has established the National Institute of Securities Markets (NISM) to educate Stockbrokers, sub-brokers, and investors about the stock market. Some broking firms insist on having a certification of the NISM.

Certification Courses for Stockbrokers

Candidates can become a stockbroker by following the above qualifications. There are, however, many other things to do to become a Broker. If the student has other things like certain Certifications related to stock broking, it will help in qualifying easily.

Following are Certificate courses for Stockbroking such as:

• NSE's Certification in Financial Markets
• NSE's Certified Market Professional
• Certificate Programme on Capital Markets
• A PG Diploma in Capital Market and Financial Services
• Post Graduate Diploma in Fundamentals of Capital Market Development

Fields in Stock Broking

Ascertain of students capacity to either Stock Brokerage firm or to practice as a Stockbroker or Sub-broker, or dealer. If students wish to practice as a registered stockbroker in any stock exchange, there are various options available.

Following are the few popular options:

• Stockbroker

With the financial aid to venture to have the stock brokerage firm, then you can proceed with registering as a member of the Stock Exchange with a registration ID. The fees for registering as a member runs into several lakhs, and stockbrokers can share this membership id with their clients and begin trading.

• Sub-Broker

 A sub-broker practices in place of registered stockbrokers and trades under the membership of a registered member of the stock exchange or a Stockbroker's membership ID.

• Dealer

Sub-brokers can hire dealers to input their trades on the stock exchange portals. A dealer enters the trades on the computer on behalf of the broker or sub-broker.

• Personal Financial Advisor

Personal financial advisors act as consultants/experts of investment and financial advice. They plan strategies and financial instruments to help clients achieve their goals.

Entrance Exams for Stockbrokers

There are many entrance exams that candidates can take to get admission in better stock broking Institutes:

Entrance exams that are available in this field are listed below.

• BSE Certification on Central Depository
• BSE Certification on Derivatives Exchange
• BSE Certification on Currency Futures
• BSE Certification on Securities Markets

Top Institutes Offering Stockbroking Courses

In India, many Institutes offer stock broking courses. By getting a professional degree in stock, broking candidates can increase their value as stockbrokers.

Following are the top Institutes that are offering stock broking courses:

• Institute of Company Secretaries of India
• Institute of Capital Market Development
• All India Centre For Capital Market Studies
• Mumbai Stock Exchange Training Institute
• Institute of Financial and Investment Planning
• Institute of Chartered Financial Analysts of India
• The Orion Institute of Capital Market
• The UTI Institute of Capital Market

What Does a Stockbroker Do Daily?

A stockbroker is an individual and an organization given a special license to participate in the securities or stock market on behalf of clients. The Stockbroker has the role of an agent.

So what does a stock broker do daily? A stockbroker performs various activities daily related to buying and selling of stocks, advising his clients, etc.

Following are some of the activities that a stockbroker performs daily:

• So what does a stock broker do daily?
• The Stockbroker mainly buys and sells stocks on behalf of his clients.
• Always being in touch with his clients and constantly updating them on fluctuations and trends in the market.
• Advising when to buy and at what rate to sell
• The investor should regard the Stockbroker as providing valuable service and information in return, helping him make the correct investment decision.

Stockbroker Salary In India

The salary of a stockbroker depends much on their qualifications and performance. The starting salary is between INR 2 to 3 Lakh per annum. With relevant experience, the salary can go from INR 5 to 7 Lakh per annum. Besides, they may also get a bonus and a salary based on the performance in some cases, depending on the brokerage firm.

The prospects of doing business in Stockbroking are bright. The job openings are many for those qualified to handle this business and have the necessary personality traits to cope with it.

Let's know the personality traits :

• Having loads and tons of Patience and being Confident
• Logical Thinking skills
• Having a good business acumen
• An in-depth ability to solve complicated issues
• Having Good Communication skills and Number crunching skills
• An analytical and responsible mindset

"In a brokerage firm, skill sets can take a stockbroker to the highest places."

Stock Market Jobs

Stock Brokering is becoming one of the important and famous fields to work on. The salary of a Stockbroker is also good to survive and live a peaceful life. A Stock Broker can work in different job profiles and fields, as they know about finance, investment, Accounts, insurance, etc.

Let us see about the various job profiles.

• Financial Advisor
• Investment Advisor
• Capital Market Specialists
• Independent Agent
• Accountants
• Securities Analyst
• Financial Managers
• Security Traders
• Security Sales Representative
• Securities Broker

Job areas include and not limited to :

• Brokerage firms
• Large Business Organisations
• Insurance Firms
• Investment banks
• Mutual Funds and Pension funds
• Magazines and Newspapers
• Investment consultancies
• Financial institutions
• Research

As you may be aware, 'Sky's the limit'. If you have what it takes to battle the rise and fall of the stock market and you are confident of meeting the demands of this challenging work environment leading to understanding the economy and a good ability to crunch numbers, then you are in for a great career.