What is a stockbroker?
Working as a stockbroker means that you buy and sell shares on behalf of others. The stockbroker acts as an intermediary between buyers and sellers in the financial market and is paid in something called brokerage. A stockbroker settles transactions for the purchase and sale of shares, mutual funds and similar securities on behalf of clients.
Advice on which companies they should buy shares in and which shares and funds it is advantageous to sell is also included in the work.
Money market brokers and bond brokers trade in bonds, treasury bills and certificates issued by the state, municipalities or companies.
The stockbroker usually works in large trading rooms with computer screens and follows the change in share prices and news that can affect the development of the financial market.
Example: What does a stockbroker do?
As mentioned earlier, a stockbroker is a person who buys and sells shares on behalf of others. Most often on behalf of investors who either want to buy a significant share in a company, or alternatively sell a significant part of a company that is listed on the stock exchange.
There are also other titles and professions that are reminiscent of stockbrokers. Examples of these are fund and bond brokers.
As the name suggests, these are engaged in brokering funds and bonds, respectively, while a stockbroker focuses on brokering shares.
As a stockbroker, you are usually employed by a bank, investment bank or other financial institution. The most common tasks include:
- Purchase and / or sale of shares in accordance with customers’ requirements.
- Advice to clients. Which shares have a strong growth potential?
- Analyzes to find new investment opportunities.
Desirable characteristics of a stockbroker
Working as a broker can be stressful and it is important to be able to have many balls in the air at the same time. Namely, you must be able to keep track of the development of different shares, how share prices and different stock exchanges change, and whether there are any political or economic events that can affect the market.
Either positive or negative.
With that said, it is desirable if you can work under great stress and pressure, perform tasks in an efficient manner, and have the opportunity to make tough decisions quickly.
It is also important that you are social and can have a good dialogue with your customers.
You should be able to work efficiently and make quick decisions under pressing conditions. The ability to analyze, make contacts and be responsive is crucial to success at work.
What training is required to become a stock broker?
To be able to become a stockbroker, it is usually required that you study a financial program in high school. After that, post-secondary studies are also required.
The vast majority of brokers have a university degree in either a master’s degree in economics or a master’s degree in engineering.
To study to be a stockbroker
When you study to be a stockbroker, you usually do it via a master’s degree program or a master’s degree program.
It is important to keep in mind that stock and other securities brokerage requires both the ability to solve mathematical calculations quickly and in many cases to be able to sell.
A degree with elements of mathematics, e.g. through choice of specialization or independent courses, is therefore often preferable.
How much money do you make as a stockbroker?
So to the big question that many are interested in – how much money do you make as a stockbroker?
In fact, this figure can vary greatly depending on your experience, education and the demand for brokers in the market. There are sources that show salary figures from $5250 / month to a maximum of $11,000 / month.
Specialization and alignment
Stock brokers usually specialize in either targeting private, corporate or institutional clients.
They can also specialize in the types of stocks they trade: smallcap, midcap or large cap stocks – but they can also focus on different sectors and industries.
Difference from similar professions
On the one hand, we have the difference from stockbrokers who, instead of brokering shares, deal with funds. Furthermore, there are brokers that focus on currencies and bonds, so-called bond brokers and currency brokers.
Another common term for the latter is forex traders.
What are some common employers for stockbrokers?
Common employers for stockbrokers are banks, insurance companies and securities companies. If you are looking for a job as a stockbroker, go to Netjobs.com.
There you will find a modern job agency that can help you find your dream job in the financial sector.
I will reiderate, before you can start looking for a job, however, you must have the right education and skills for the job. For example, it is common for stockbrokers to have a degree in economics or civil engineering, with a focus on industrial economics.
However, a university degree is not enough to work as a stockbroker; at least not in Sweden you must also be licensed by SwedSec, which is owned by the Swedish Securities Dealers Association. Everyone who works in the Swedish securities market must have this license.
Even with the right education, however, there are no guarantees that you will become a good stockbroker; this also requires certain qualities that cannot be learned with theory, but which may be practicable in practice, if you do not already have them.
These are, for example, good analytical skills and the ability to value large amounts of information (for example to determine what affects the stock market and not) as well as a large measure of cooperation and sense of service (because you must be responsive to customer wishes, as it is their mission to to perform).
If you have all this, you have a good chance of succeeding well as a stockbroker.