Did you just finish watching Wall Street and The Wolf of Wall Street? The lavish life of Jordan Belfort in the latter, must have charmed you in its full glory, right? Stockbroking sounds glamorous just like these Hollywood movies. But, being a stockbroker doesn’t involve that glam and glitz, but it is pretty amazing. It is a very rewarding profession but one doesn’t become rich just in a day. Even if you are a Wall Street enthusiast or an aspiring stockbroker, this article is just for you.
Stockbroking is a service in financial market that provides retail and insipid investors, an option to trade shares. A stock broker advises his clients on pertinent investments to fit their abilities and objectives. With the help of their legal mandate, a stockbroker buys and sells the stocks for his clients for whom he receives a commission for the transaction he just made for the client. Stockbrokers are the bridge, connecting Wall Street to the main street.
– The skills needed in stockbroking
Stockbroking sounds like a glamorous work but in fact, many new brokers drop out of this business due to prolonged working hours, stress and requirement of large amount of dedication. One should be able to take rejection and try to make the most of their day. These are the crucial skills for stockbroking as most of a broker’s day is spent on phone calls, brainstorming stock ideas to the prospective clients. Apart from these, one also should have an ability to sell, communicate and explain hard concepts to the clients, in a very lucid way. Remember, sometimes it takes years to build a business, so you need to be patient and persevering enough to be in stockbroking.
– Ensure being top in competition
If you want to increase your chances in the competition, then you may like to consider accelerating your academic qualification. Gaining an MBA degree will give you enough competence to get into famous firms. Also, a master’s degree will also ensure that the candidate already knows a lot about finance and good in communication. After this, consider gaining a good internship record. It will give you a little confidence in stockbroking and also, helps you stand out among your peers.
You may also want to make your own investment portfolio because nothing beats the real-time experience in stockbroking. For this, learn and educate yourself well enough so that you can initiate constructing your own proofs of your tactics. For instance, a CMC markets stockbroking account lets you trade Australian shares and also provides you access to IPOs and placements.
– Look out for the suitable firm & be the fittest one
Have an eagle eye for those companies that have a good reputation and constructive-structural training agendas. Consider firms that actually go well with your choices and personality. Consider working for a smaller firm before working for a larger firm, as it would help you build your confidence and give you a higher commission rate. The only drawback of working for the smaller firm is in landing customers to your firm, as it would be lesser known. Take training to get your legal mandate so that you can become a full-fledged stockbroker.
– A strong clientele base
Just because you are authorized stockbroker in papers, doesn’t really mean you have done it all. This is just the starting point. Now, you need to build a very strong prospective client base. Here goes the saying, “ Charity begins at home “. Home is where you need to start too. Start tapping your friends and kinsman asking for referrals. Get a list of prospective customers maybe from your employer or from any marketing company. Consider making phone calls using phone books or go knocking the doors.
– Keep improvising
Stockbroking is not a child’s play. You will be guiding people by risking their money. You will be working most of the time of the year. Initially, You will even be working on holidays and celebrations. But once you establish a strong client-base, then you can relax a bit. But remember, hard work always pays off. You will earn more and more as the years pass by.
– How much do the stockbrokers make?
According to the statistics, average income of a stockbroker comes to about $97,230 in 2015. This means one half is paid less than the median value and the other half makes more than that. Remember, that your pay will depend on your experience and commission.
Now, that you know almost everything about stockbroking and what it takes to be a stockbroker, it is easy for you to make up your mind. This field requires a lot of patience and perseverance. So get used to the constant sales pressure and when in doubt, remember what you are trading your time for.