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    The stock market is a place of trade, where many entrepreneurs, investors, big and small companies engage in stock exchange. They do this to expand their reach and their profits. It is an interesting place to trade as no physical goods are exchanged. Instead, stocks, bonds, shares or otherwise generally known as securities are bought and sold. Before delving into facts and figures, let’s look at who a stockbroker is and the roles they play in the stock market.

    A stockbroker is a person that can be described as an agent that acts as intermediary between buyers (investors) and sellers of shares (or stock) from a company or governmental institution. They could be hired individually by a company to be their representative in the stock market, or they could work in a brokerage firm which is the more common practice.

    SEE ALSO: How To Invest In The Nigerian Stock Exchange Market

    Duties of a Stockbroker

    Below are listed responsibilities a stockbroker carries out for their clients:

    • Acting as a middle man for the selling or buying of shares/stock for their clients – Stockbrokers conduct the trade over the counter in a physical office building or electronically over a network. They browse for companies that are selling shares and chose the best for their clients to invest based on their budget. Invariably, they would be selling shares for the companies to interested investors.
    • Give advice to their clients – They are required to give financial advice to their clients in order to enable them to make the best financial moves towards investing.
    • Find and add new clients to their portfolio – The portfolio is a kind of list of investors profiles the stockbroker has managed to sign up as their clients. If the stockbrokers work in a firm they are given bonuses in addition to their salaries whenever one of the investors in their portfolio does some trade with the firm.
    • Manage their clients’ investments – Part of their core duties is the managing of investments. Every addition to their portfolio means an additional account to take care of. They will be responsible for the auditing and at the end of the day the investment should produce a profit. At least most of the times.

    The Requirements for the Job

    The stockbroker is needed to have a university bachelor’s degree or master’s degree in financial management or related courses. It is with such advanced education they will be able to understand the intricacies of the financial stock market. You can study any course related to finance and economy like

    • Banking and Finance
    • Accounting
    • Economics, etc.

    Then moving on, you needs to register with the Chartered Institute of Stockbrokers (CIS) as a student. It costs N10,000 Naira. You will fill an online form via the CIS’s website.

    After that you will register in their professional program. It is a course for those interested to learn more about investment and securities. The course is free as long as you have registered as a student in CIS. Also they require a 5 credit minimum before you are enrolled in the course.

    The next registration still with the CIS is the CIIA registration. This stands for Certified International Investment Analyst. This certification will finally grants you recognition both locally and internationally as a professional stockbroker. It costs N75,000 Naira and you have to be a member of the institute already or a registered student of the institute.

    Certification and Registration            Cost (Naira)

    Student membership                           – 10,000

    Professional program                           – 75,000

    Total =                                                   – 85,000

    Type of Stockbroker Do You Wish to Become

    Full-time Stockbroker

    This involves working in a reputable brokerage firm (also known as a securities firm) of your choice when you have passed all the required tests. You are paid by salary. Bonuses and commissions apply for each sale from the stockbroker’s portfolio. This is where a stockbroker strives in creating and managing a busy portfolio, and fulfills orders from those higher up in the command chain.

    Hired Stockbroker

    This is when a person decides to work individually or is hired by a company to look after their investments and act as an intermediary when the need arise to trade in stock, bond or shares. This is best suited to individuals with an already garnered reputation in the industry. They are paid by commissions from each sale.

    SEE ALSO: Top 10 Forex Brokers And Forex Trading Platforms

    Bank Investor

    A stockbroker can work for a bank, though it’s more of an extension of a full-time job. Banks deal in securities it’s one of the major profit mediums for a bank. So of course, they need a stockbroker to handle their trade in the stock market.

    Qualities of a Good Stockbroker

    Brokerage is not your average every day job, it concerns people’s money, their future and their dreams. It is the kind of work that needs some merits to be met before it is awarded to anybody. Below are some of the important qualities a stockbroker should possess.

    Trust

    It is everything in this business. If you lack the ability to be trustful by cheating, lying, deceiving and so on you cannot bag any work to your name. A level of trust must be achieved before anyone can give out their bank account to a person or firm.

    Hard work

    May seem amateurish to mention, but unlike many other jobs this really needs you to break your back for it. It is one of the toughest corporate jobs there is.

    Read Financial Reports

    Stockbrokers are avid readers, you need to cover all aspects of the financial life of the country to know what decisions to make in favour of your clients. From government bans on some products, to the fluctuations of the GDP, to recent changes in foreign exchange etc. Reading will make you keep tabs on the current financial issues which makes for a better decision making.

    How Much Do Stockbrokers Earn

    Stockbrokers earn most of their income by commission. Being paid by salary is usually by firms or banks and it could be over N50,000 Naira even for new entrants into the market at the least. There is much speculation as to the actual income a stockbroker earns but it usually depends on level of expertise and experience. Some earn up to N3,000,000 million Naira annually on average.

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