Stock Brokering involves buying and selling of shares for clients on commission basis. But most big broking firms don’t restrict themselves just to shares. Some stock brokering companies and stock brokerage firms in India offer mutual funds, insurances, commodities, currencies and other financial products as well. Most firms recruit freshers as Assistant Relationship Managers (ARMs) and Relationship Managers (RMs). These professionals job is to be in constant touch with the clients, inform them of market movements and advise them on the amount of risk they should take. They are the one point contact of the clients. They take orders from clients to buy and sell at specific rates. Besides working with existing clients, they also solicit more business for the company. An ideal RM would be someone who raises the client’s net worth.
The educational requirement needed to be a successful stock broker include an undergraduate degree in any finance-related field and a registered representative license. However, to gain access to more employment opportunities, it is essential to obtain a master′s degree in business administration (MBA). In addition, a stock broker is required to attend training courses throughout his career in order to stay current with the ever-changing nature of the industry. Along with academic training, a stock broker must demonstrate excellent communication and analytical skills in order to maintain client relationship as well as professionalism and confidentiality when handling the financial information of others.
The duties of a stock broker involve formulating investment plans for clients based on their specific needs while managing the records and monitoring the transactions of client investments. In addition, a stock broker must keep updated on financial reports while gathering information about stocks, mutual funds, bonds and pension plans.
Stock brokers have the option to work in different business settings, including banks, investment firms, credit unions and other areas where they are able to buy and sell stocks and other securities.
Through experience and proven success, a stock broker has the advantage of managing larger corporate accounts and retirement funds. In addition, with the right level of expertise, he can be promoted to branch manager.
A relationship manager with MBA in finance can draw 2.4 lacs to 4 lacs a year (depending on the firm). Non finance RMs earns less. A good RMs can rise to become a team leader, a zonal manager of a branch or an AVP. Apart from this, One can start it with a very small amount i.e. even within two lacs and with sincere efforts can easily reach to Rs. 50,000+ earning per month within 3-4 months and can grow to any big amount as per one’s efforts & sincerity. This profession also enjoys a good status in the society as all want to earn maximum and this is one avenue which can give a lot of returns.
- National Stock Exchange, Mumbai www.nseindia.com/education/cantent/nse_certification.htm
- Institute of Company Secretaries of India, New Delhi (PG course in capital market and financial services) www.icsi.edu
- The Indian Institute of Finance, New Delhi (Master of Business Finance) www.iif.edu
- Jamnalal Bajaj Institute of Management, Mumbai, www.jbims.edu
- NMIMS University, Mumbai, www.nmims.edu
- SP Jain Institute of Management & Research, Mumbai, www.spjimr.org