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.
Table of Content
- What Does a Stock Broker Do?
- Types of Stockbroker
- Eligibility Criteria to Become a Stockbroker
- How to Become a Stockbroker in India?
- Stockbroker Courses
- Top Colleges for Education to Pursue a Career in Stockbroking
- Benefits of Being a Stockbroker
- Stockbroker Skills
- Stockbroker Salary
- Conclusion
- How To Become A Stockbroker In India?-FAQs
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 |
|---|---|---|---|---|
|
Mumbai |
₹3,25,000 |
|
Aptitude Test + Personal Interview |
|
|
Hyderabad |
₹2,80,000 |
40 |
Merit-Based |
|
|
Hyderabad |
₹4,00,000 |
12 |
|
|
|
Vadodara |
₹80,000 |
|
Entrance-based |
|
|
Bengaluru |
₹9,00,000 |
|
AUSAT (Alliance University Scholastic Aptitude Test) |
|
|
Noida |
₹3,51,000 |
|
Merit-Based and Entrance Test |
|
|
Pune |
₹1,50,000 |
IIRF 2023 “Best Private Colleges” – 35 |
Merit-based |
|
|
Jalandhar |
₹1,60,000 |
|
Entrance-Based |
|
|
Solan |
₹1,10,000 |
41 |
10+2 with 50% marks |
|
|
Bengaluru |
₹1,00,000 |
|
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.