If you live by the phrase “high risk, high return”, then a role as a Stockbroker may be just for you! A Stockbroker manages investments from clients and companies in order to get the best financial returns by buying and selling stocks and shares. The performance of companies and industry effects the price that they sell part of their company, on the stock market. So as a stockbroker, you need to be on the ball!
Being a Stockbroker is not about going bananas with people’s or companies’ money like in the movies! There are strict regulations put in place from the Financial Conduct Authority (FCA). In addition, Stockbrokers tend to offer three types of services: Discretionary – making investment decisions on the client’s behalf, Advisory – advising the client on investment options and Execution only – buying and selling only at the client’s request. Whichever service is provided, as a Stockbroker you may be doing the following:
- Researching and analysing the performance of financial markets and companies
- Working alongside Investment Analysts to gain more knowledge of the performance of markets and companies
- Creating and developing investment strategies with clients
- Monitoring and managing clients’ investment portfolios
- Negotiating with market traders, the best price for buying and selling shares or stocks
- Regular communication with clients informing them about their investments and opportunities
Key Skills & Characteristics
A Stockbroker should:
- Have excellent communication and negotiation skills
- Be decisive using their sound judgement whilst being commercially aware
- Be a quick thinker with the ability to take initiative
- Have the drive, energy and determination to succeed
- Be analytical in their approach with an attention to detail
To become a Stockbroker, employers look for individuals who have completed a relevant degree that would either provide knowledge of trading and financial markets or a subject that would help with carrying out the duties, as mentioned above. So, a degree in Business, Economics, Finance or Mathematics would be advisable.
Obviously, you will be seen as a better candidate if you complete a Masters in a relevant subject. Work experience will definitely not hurt your chances by any means, particularly if you’ve worked in finance, sales or have had work placements with financial institutions. It’s a competitive career, so you need to make yourself look as appealing on paper as possible.
Once you’re finally in, you’re not quite done there! You must achieve industry-recognised qualifications and register with the FCA, so we don’t have another wolf of wall street.
Chief Financial Officer
Advice From Our Experts
- Financial Perks – Commission can provide an amazing salary
- Networking – You get the opportunity to meet a variety of people
- Challenging – It’s an exciting career. You really don’t know how the market is going to react
- High Stress – A lot of pressure is put on you to make money for clients and companies
- Long Hours – You can be working over 12 hours in a day at times
- Market Fluctuations – If the market is poor then it does effect your finances