As a stock broker you are saddled with the responsibility to mediate between buyers (investors) and sellers of shares (or stock) from a company or governmental institution. Though there are lone stock brokers, but majority of Nigerian stock brokers work in a Brokerage firm.
WHAT A STOCK BROKER DOES
If you wish to be a stock broker, then pay close attention to these responsibilities I am about to outline here;
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As a stock broker your primary duty is 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.
Basically, a stock broker that works for a brokerage firm sells company shares to interested investors.
As a stock broker you should be able to give financial advise to a potential investor. If you can tell clients the best way to invest their monies, they will come calling on their own.
In order to grow the companies portfolio as a stock broker, you must source for new clients. Most brokerage firms give incentives to performing stock brokers in order to ensure a motivated workforce.
Other duties are listed below;
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
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
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.
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.
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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.
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.
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.