How To Become A Stockbroker In India?

A stockbroker simplifies the purchasing and selling of securities, like bonds and stocks, on behalf of clients within financial markets. In order to become a Stock Broker, aspiring students must complete their 10+2 from a recognised board following the procedure needed to receive a licence from SEBI (Securities and Exchange Board of India) and acquire membership in the NSE (National Stock Exchange). Students can also pursue formal education in order to build a robust foundation in finance and management principles.

There are numerous courses and programmes that students planning to become Stock Brokers can opt for. B.Com, MBA in Finance, B.Sc, and BBA are some of the top degree courses. Students can also go for short-term certificate programmes in order to gain insights and develop skills.

What Does a Stock Broker Do?

A stockbroker is responsible for finding their clients the best prices on stocks. Some of their primary duties include:

• Managing client investment portfolios
• Offering exact investment advice to clients
• Accurately evaluating financial reports
• Finding new clients through networking and cold calling
• Making modifications in investment strategies based on market conditions and client goals
• Updating clients regularly regarding the status of their investment portfolios

Types of Stockbroker

Here, we have discussed diverse types of stockbrokers:

1. Traditional or Full-time Stockbrokers

Traditional or full-time stockbrokers offer their clients many services and products. These services include advice regarding investments, security trading, retirement planning, taxes on capital gains, and management of investment portfolios, among others. The money they charge is a bit high, but it’s worth it given the comprehensive array of services they put forward.

2. Discount Stockbrokers

An online stockbroker or a discount stockbroker is in the majority of the band of brokers. Recruiting discount brokers isn’t much of a fuss since they don’t charge much, and it’s convenient for the laypeople regarding the utility of place and time. The market participants are not required to contact them personally and can conduct their investment via the Internet. Investors with a minimum disposable income can also begin to invest in the share market with the assistance of discount brokers.

Eligibility Criteria to Become a Stockbroker

There are pre-determined eligibility criteria that applicants aspiring to become Stockbrokers should satisfy. The typical eligibility criteria include:

• Applicants should be Indian citizens with a minimum age of 21.
• Aspiring stockbrokers should have a minimum of prior experience working as an authorised assistant/partner/register/authorised clerk/apprentice to an already established Stockbroker.
• Aspirants should be registered with the Stock Exchange Board of India as practising Stock Brokers. They should also satisfy the financial and fit and exact criteria SEBI determines.
• Applicants have to become members of a recognised stock exchange in India.

How to Become a Stockbroker in India?

Here are the basic steps candidates can follow in order to learn how to become a stockbroker in India:

• Complete +12: The minimum education needed to become a Stockbroker is class 12. Candidates should successfully complete their 10+2 from a recognised board in India.

• Get a degree: Most recruiters necessitate a bachelor’s degree in order to be eligible for entry-level positions in financial services, securities, and commodities. No particular degree is needed, although a degree in economics, accounts, finance, or business can help you prepare for your thriving career as a stockbroker.

• Certification: Pass a certification exam conducted by the National Institute of Securities Markets (NISM). There are different modules relevant to stockbroking, and the specific requirement depends on the type of membership you seek with the stock exchange. Common options include:
  • Securities Market (Basic) Module
  • Compliance Officers (Brokers) Module
  • Relevant modules as per the required segment for membership of the Exchange

• SEBI Registration: Register with the Securities and Exchange Board of India (SEBI) as a stockbroker. SEBI has “Fit and Proper” criteria that assess your financial stability, reputation, and experience. You will need to submit various documents like your PAN card, educational qualifications, experience certificates (if applicable), and proof of funds.

• Stock Exchange Membership: Apply for membership with a recognized stock exchange in India, such as the National Stock Exchange of India (NSE) or the Bombay Stock Exchange (BSE). Each exchange may have its own specific requirements and application process.

• Company Setup: Establish your stockbroking firm. This may involve registering a company or partnership depending on your chosen structure.

• Compliance: Ensure you comply with all regulatory requirements set by SEBI and the stock exchange(s) you are a member of. This includes maintaining minimum net owned funds, adhering to ethical business practices, and completing ongoing training.

Stockbroker Courses

Applicants can become a stockbroker in India by following the qualifications mentioned above. However, there are many other things to do to become a stockbroker. If the applicant has certain certifications in stock broking, it’ll help him or her qualify effortlessly.

Here are some of the certificate courses for Stockbroking that will increase an applicant’s chances of becoming a successful stockbroker:

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

Top Colleges for Education to Pursue a Career in Stockbroking

Tabulated below are some of the best colleges that you can opt for in order to pursue your dream of becoming a stockbroker:

Name of the College	Location	Fees (in ₹)	Ranking	Admission Process
NMIMS	Mumbai	₹3,25,000	Overall Ranking 2022: 88th University Ranking 2022: 47th Management Ranking 2023: 21st	Aptitude Test + Personal Interview
ICFAI Foundation for Higher Studies	Hyderabad	₹2,80,000	40	Merit-Based
Woxsen University	Hyderabad	₹4,00,000	12	10+2 with a minimum aggregate of 60% marks. Merit-based + Entrance-based
Parul University	Vadodara	₹80,000	NIRF Innovation Ranking 2023 (University): Top 50 NIRF Ranking 2023 (University): Top 200 Times of India Business Administration Institutes of India: Top 75 Times of India Engineering Institutes of India: Top 100	Entrance-based
Alliance University	Bengaluru	₹9,00,000	NIRF Ranking 2023 (Management): 87th NIRF Ranking 2023 (Law): 25th Times B-School Rankings 2022 (Best Business B-School under Private University): 3rd Times B-School Rankings 2022 (Best Business B-School in South India): 3rd 751 – 800 in Asian University Rankings 2024 Diamond QS I-GAUGE	AUSAT (Alliance University Scholastic Aptitude Test)
Amity University	Noida	₹3,51,000	NIRF Ranking 2023 (Overall): 57th NIRF Ranking 2023 (University): 35th	Merit-Based and Entrance Test
Bharati Vidyapeeth University – IMED	Pune	₹1,50,000	IIRF 2023 “Best Private Colleges” – 35	Merit-based
Lovely Professional University	Jalandhar	₹1,60,000	NIRF Ranking 2023 (University): 38th NIRF Ranking 2023 (Overall): 46th Times Higher Education World University Rankings 2024: 25th THE Impact Rankings 2023: 2nd	Entrance-Based
Shoolini University	Solan	₹1,10,000	41	10+2 with 50% marks
CMRU	Bengaluru	₹1,00,000	Ranked 6th among Best State Private Universities & South Zone. 15th among the top 100 Universities Overall 15th across India by R World Institutional Ranking in the MHW Ranking 2022	University Level: CMRUAT

Benefits of Being a Stockbroker

Being a stockbroker offers numerous advantages, which include the following:

• Significant financial benefits via fees, commissions, and bonuses depending on their performance as well as the client’s transaction successes.
• Thorough understanding of financial markets, charting investment strategies, staying abreast of evolving market trends, and more.
• Stockbroking offers opportunities for career advancement. Candidates can move into higher posts or specialised roles in the financial industry with experience.

Stockbroker Skills

Listed below are some skills that a stockbroker should have in order to further their career:

Negotiation Skills	Interpersonal Skills
Mathematical Skills	Problem-solving Skills
Wealth Management	Research and Critical Thinking
Ethical Conduct	Risk Management

Stockbroker Salary

The salaries for different related designations of a stockbroker are listed in the table below:

Designation	Average Annual Salary (in ₹)
Financial Planner	₹3,50,000
Derivatives Trader	₹3,60,000
Investment Advisor	₹4,00,000
Equity Analyst	₹4,20,000
Wealth Manager	₹6,00,000
Portfolio Manager	₹7,00,000

Firm-wise Stockbroker Salary in India

Here’s a starting salary for entry-level stockbrokers in India by leading companies:

Name of the Company	Average Annual Salary (in ₹)
Sharekhan	₹3,40,000
Motilal Oswal Financial Service	₹2,20,000
Ventura Securities	₹2,00,000
Angel One	₹1,70,000

Conclusion

As you know, ‘Sky’s the limit’; if you have what it takes to battle the rise and fall of the stock market and you’re very confident of meeting the requirements of this challenging work environment leading to understanding the economy and a terrific ability to crunch numbers, then you’re in for a fantastic career. Best wishes!

How To Become A Stockbroker In India?-FAQs

Q1. Is being a stockbroker a good career?

Stockbrokers can become very prosperous throughout their careers. One of the major benefits of this job role is that you earn a base salary besides bonuses and commissions. It means the more clients you sign and the more trades you make, the more you earn.

Q2. How can one build a client base as a stockbroker?

Numerous ways exist to look for fresh clients. Here are some of the most common ways:

• Contacting relatives or friends asking for referrals
• Making cold calls to open new accounts
• Leveraging organisation memberships, like a local chamber of commerce
• Reaching out to pre-qualified prospects that a marketing firm or your firm offers

Q3. What is a typical work environment for a stockbroker?

A stockbroker generally works for a financial institution and spends most of his or her time in an office setting. He or she may also travel to meet with current and prospective clients. The work is fast-paced and challenging at times. Stockbrokers need to communicate frequently with their clients in order to give updates based on their investments.

Q4. What qualifications are required to become a stockbroker in India?

To become a stockbroker in India, you need to have a bachelor’s degree in finance, economics, business, or a related field. Additionally, you must pass the NISM Series-I and Series-VIII exams to obtain the necessary certifications.