Companies sell stocks to grow and develop their business. You can invest in stock in the stock market. But, one cannot buy stocks directly from a stock exchange. They have to do it through stockbrokers. Stockbrokers trade stocks on the stock exchanges on behalf of investors. There are two types of stockbrokers – Institutional and personal stock brokers. They both offer investment banking, advisory, and brokerage services. But Institutional stockbrokers work on the behalf of big companies. And personal stockbrokers work for individual persons or small businesses.
Do you have the confidence to face the ups and downs of the stock market? Can you adapt to changes in the stock market? You know how to keep calm even when you going through a loss. Then you can also become a stockbroker. Here is a full guide on how to become a stockbroker in India.
To become a stockbroker in India you need a graduation degree ( in the commerce or business field). You need to have at least two years of work experience in a stockbroking firm. You should be minimum 21 years old. If you pass all these criteria then you are eligible to become a stockbroker.
As a stockbroker, you have to know stock market conditions. You have to analyze the current economic trends. While you will also need to have a deep understanding of the economy. Furthermore, you can also do courses to gain more knowledge in this field. There are many institutes that offer online and offline courses. Or you can even pursue Masters’s degree, post-Graduate Diploma, or MBA in finance.
Go to the websites and check out details such as courses, fees, and entrance exams.
First, you need to become a member of a stock exchange. And then register under the Securities and Exchange Board of India (SEBI). SEBI governs all the brokers to protect, promote and develop the security market.
For an application for the registration, you need to give the following information –
Name of the stockbroker
Information about your firm
Information of stock exchange you’re a member of
Recommendation of a stock exchange
You have to pay registration fees. There are three categories according to the region of the stock exchange. The fees are usually in lakhs. You can make two equal payments. For more detailed information check out the SEBI website. https://www.sebi.gov.in/legal/circulars/apr-1992/registration-of-brokers_19382.html
Then your name will be on a list of all SEBI-registered stockbrokers. –
Then you will receive a Certificate of Registration (CoR) from SEBI. After that, you can start practicing as a stockbroker.
There are more jobs you can find in the stock market. You can work in a brokerage and insurance firm as an advisor. You can work as a stock sales representative in big companies. While you can do research and work for financial magazines and newspapers. Investment banks such as JP Morgan recruit stockbrokers. You can also become an independent agent. As you gain experience you can even start your own firm.
Your salary depends on qualification and experience. As a fresher, you may get a salary from 2 to 3 lakh Rs per annum. But it will increase up to 6,00,000 Rs per annum. Some companies give bonuses with salaries based on performance.
There are many pros to becoming a stockbroker. As long as there are financial markets, there will always be a need for stockbrokers. You don’t have to worry about losing your job. You get to explore new sectors and companies.
One should also keep cons in mind. Changes in the market will usually have an impact on your income. You will have fewer customers when the market is down. You have to face losses. As a starter, you may not get big clients and you will do mistakes. If you working for a firm, you may not have the choice to choose stocks. You have to deal with pressure to get clients to trade with your firm.
Here is all you need to about how to become a stockbroker in India. Stockbrokers play an important role in a country’s investing. They offer many services other than trading stocks and financial consulting. Opportunities for stockbrokers are increasing. They have areas in which to build a business. This entire process can be time-consuming and costly. You have to work hard and deal with the downfalls in the early stages of a career. As you become more successful and well-known in the financial industry. Then you will gain more wealth.