A Stock Broking Career can be a lucrative one if done the right way. In this post, you will know the process of becoming a stockbroker, the required documents, the eligibility criteria, what stockbrokers do, how much the earning potential is, and more.
The Application Process
- You may apply in person, or online. If planning to visit in person, call beforehand to enquire due to the Covid-19 situation.
- The application form may be received from the office during your visit or downloaded from the following link: https://www.sebi.gov.in/acts/stockreg1.pdf
- For new membership, submit a completed application and all relevant documentation to the stock exchange’s membership department.
- Authorities will examine the information provided. If everything is in order, the user will get an acknowledgment for the application they submitted.
- Internally, the application and documentation will be handled to get board approval as well as SEBI certification.
- Following processing, the board issues an offer letter of temporary membership to the applicant.
- With the temporary membership letter, the applicant will require SEBI certification.
- After internal processing, a SEBI certificate will be given.
- After receiving both papers, the applicant must submit the enabling document to the membership department as directed.
- The membership department will make a proposal to provide members access to the trading system.
Documents Required while submitting your application
- Application form
- Applicant name
- Applicant address
- Name of the trading firm
- Educational qualification of the applicant
- Address of establishment
- Mobile number
- email Id
- Aadhaar Card
Requirements for being a Stock Broker
To become a stockbroker, you must have a bachelor’s degree and at least two years of experience working in a stock brokerage business. In addition, a sub-broker (the last step of becoming a broker) must have completed the 12th grade to be eligible for his employment. Finally, the minimum age is 21 years old.
What do Stock Brokers do?
Stockbrokers participate in the market by buying and selling stocks on behalf of their customers. They frequently contact their customers, keeping them informed about market swings and advising them on when and how to purchase and sell. Simultaneously, stockbrokers guarantee that their stock dealing firm generates the most profit in the long term. You may operate as a full-service broker (for example, with ICICI Direct or Sharekhan) or a discount broker (for instance, with ICICI Direct or Sharekhan) (with firms like RKSV or Zerodha.)
This is a fully integrated company. Stockbroking jobs aren’t the only ones available in this area. The stock market requires the expertise and talents of professionals from numerous sectors, ranging from economists who understand the ins and outs of the need to financial planners who can provide you with sound stock guidance. You may also work as a financial manager, an analyst, or a market expert.
Although there are no stock broking schools, being a professional stockbroker requires a foundation in the specialized subjects of commerce, business administration, or economics. A post-graduate degree in business or economics might improve one’s chances of entering this famous and demanding profession.
Financial managers with a Master of Business Administration (MBA in Financial Markets) degree are favored since they have a technical understanding of the industry.
Is a career as a Stock Broker Right for you?
Stockbrokers make their Clients understand stock market jargon and trading methods. It is your job to provide financial counseling and guide clients on the creation of financial portfolios. Therefore, if you plan to become a Stock Broker, you must have excellent communication skills and a good network of people who trust you enough to provide them with investment ideas.
If you do not have this network, you must have ways to build a solid clientele as your business would depend on it. This is crucial to understand before you begin your journey of becoming a stockbroker.
How much do Stock Brokers Earn in India?
This depends on your skills and how you decide to build your clientele. According to Payscale, the average pay of a Stock Broker in India is about ₹404,137 per year.
Who is exempt from being a Stock Broker?
- Those who are bankrupt or insolvent.
- You’ve been convicted of a crime involving deception or fraud.
- Personal financial liabilities, merchant banking, underwriting, and investment advisory services are among the services provided.
- Regulatory Authorities such as SEBI, RBI, and others have expelled or labeled you a defaulter on any stock exchange or have restricted you from dealing in securities.
Before you think about submitting your form to start your Stock Broking business, it is important to plan ahead how you will acquire your base of clients, how you will charge them, how you will gain their trust and what methods you have to expand your business. If you have ways to tackle these hurdles, your life as a stockbroker will be easy.