How To Become a Stock Broker In India: Salary, Jobs, Eligibility Criteria 2023
- Naief Khatri
- Updated Date: September 4, 2023
A stock broker is a financial professional who buys and sells stocks on behalf of their clients. They can also provide investment advice and guidance. Stockbrokers typically work for brokerage firms, which are financial institutions that facilitate the buying and selling of stocks. Best Career Options in Stock Market
Stockbrokers must have a deep understanding of the stock market and be able to make sound investment decisions. They must also be able to communicate effectively with their clients and understand their financial goals. Also Read: Career in Banking and Finance
The qualifications required to become a stockbroker vary depending on the brokerage firm. However, most firms require candidates to have a bachelor’s degree in finance or a related field. Some firms also require candidates to pass the Series 7 exam, which is a licensing exam for stockbrokers.
What does a Stock Broker do?
A stock broker is a licensed professional who buys and sells stocks on behalf of their clients. They can also provide investment advice and guidance. Stockbrokers typically work for brokerage firms, which are financial institutions that facilitate the buying and selling of stocks. Also Check:Â Masters In Accounting
Here are some of the duties of a stockbroker:
- Receiving and executing buy and sell orders from clients:Â Stockbrokers must be able to quickly and accurately enter orders into the stock market.
- Providing investment advice and guidance:Â Stockbrokers can help clients choose investments that meet their financial goals.
- Managing client accounts:Â Stockbrokers must keep track of client investments and make sure that they are properly managed.
- Providing research and analysis:Â Stockbrokers can provide clients with research and analysis on different investments.
- Monitoring the market:Â Stockbrokers must stay up-to-date on the latest market news and trends.
Stock brokers are involved in the buying and selling of stocks in the market, mainly for their clients. They always remain in touch with their clients, constantly updating them about the fluctuations in the market and advise them when to buy & sell and at what rates. At the same time, stock brokers also ensure that their stock trading company also makes maximum profit in the long run. You can work as a full service broker (for eg. with ICICI Direct or Sharekhan) or as a discount broker (with firms like RKSV or Zerodha.) Also Read: Career as CWA
With the market in India growing steadily, it is obvious that those who deal in market shares are going to have rewarding careers with vast opportunities for growth. A career in share market might be a very good option indeed.Â
All the operations today are computerised, with highly trained and qualified specialists keeping a close watch on the market. You can survive in the stock broking career only if you have a knack of thinking on your feet and being adaptable in an ever-changing environment. Click here to check: Career as CA
How to Become a Stock Broker In India
Here are the steps on how to become a stock broker in India:
- Complete your education. You need to have a bachelor’s degree in any discipline from a recognized university.
- Obtain a NISM (National Institute of Securities Markets) certification. This is a compulsory requirement for all stockbrokers in India. You can take the NISM certification exam after completing a diploma or certificate course in securities markets from a NISM-approved institute.
- Register with SEBI (Securities and Exchange Board of India). This is the regulatory body for the securities market in India. You can apply for registration as a stockbroker with SEBI after obtaining the NISM certification.
- Open a demat account and trading account. These are the accounts that you will use to trade in securities. You can open these accounts with a stockbroker or a depository participant (DP). Read More: Career as CS
- Obtain a PAN (Permanent Account Number) and a trading license. These are required for all stockbrokers in India. You can apply for a PAN card from the Income Tax Department and a trading license from the local police station.
Once you have completed all these steps, you will be eligible to become a stockbroker in India.
Top Stock Broking Institutes In India
Courses in stock broking and capital market and investment, investment planning and several other related courses are offered by a lot of training institutes in India.
Here is a list of colleges in India offering stock broking courses:
| College/Institute Name | Course Name & Duration | Admission Process | Eligibility Criteria |
|---|---|---|---|
|
National Institute of Securities Markets (NISM) |
Diploma in Securities Markets (SDM) - 1 year, Certificate in Securities Markets (CSM) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Institute of Chartered Financial Analysts of India (ICFAI) |
Diploma in Financial Markets (DFM) - 1 year, Certificate in Financial Markets (CFM) - 6 months |
Entrance exam |
10+2 or equivalent with at least 60% marks
|
|
National Stock Exchange (NSE) Academy |
Diploma in Stock Market Operations (DSMO) - 1 year, Certificate in Stock Market Operations (CSMO) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Securities Training Institute (STI) |
Diploma in Stock Trading (DST) - 1 year, Certificate in Stock Trading (CST) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Indian Institute of Banking and Finance (IIBF) |
Diploma in Financial Services (DFS) - 1 year, Certificate in Financial Services (CFS) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Institute of Derivatives |
Diploma in Derivatives Trading (DDT) - 1 year, Certificate in Derivatives Trading (CDT) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Yourtrader |
Diploma in Stock Market Trading (DSTM) - 1 year, Certificate in Stock Market Trading (CSMT) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Wealth Management Institute of India (WIMI) |
Diploma in Wealth Management (DWM) - 1 year, Certificate in Wealth Management (CWM) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Indian Institute of Capital Markets (IICM) |
Diploma in Capital Markets (DCM) - 1 year, Certificate in Capital Markets (CCM) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
|
Stock Market Institute of India (SMII) |
Diploma in Stock Market Analysis (DSMA) - 1 year, Certificate in Stock Market Analysis (CSMA) - 6 months |
Direct admission |
10+2 or equivalent with at least 60% marks
|
Eligibility Criteria for Stock Broker
The minimum educational qualification required to become a stock broker is a graduation with at least 2 years of experience in a stock broking firm. A sub-broker (the previous stage of being a broker) needs to have passed the class 12th standard to be eligible for his job. Minimum age: 21 years.
This business is an integrated one. Jobs in stock broking are not your only option in this field. The share market requires the genius and capabilities of specialists from various fields from economists, who know the ins and outs of the market, to financial planners, who can give you the right kind of advice on stocks. You also have the option of becoming a financial manager , analyst or a market specialist.
Although, there aren’t stock broking courses as such, you need to have a background in the specialised fields of commerce, business administration of economics to become a professional stock broker. To have an even better shot at joining this illustrious and taxing career, one can choose to pursue a post-graduate degree in commerce or economics.
Financial managers with a Master of Business Administration (MBA in Financial Markets) degree would be preferred as they would have specialised knowledge of the field.
Stock Broking Qualification Requirements
The qualifications required to become a stockbroker in India are as follows:
- Educational qualification:Â You need to have a bachelor’s degree in any discipline from a recognized university.
- NISM certification:Â You need to obtain a NISM (National Institute of Securities Markets) certification. This is a compulsory requirement for all stockbrokers in India. You can take the NISM certification exam after completing a diploma or certificate course in securities markets from a NISM-approved institute.
- SEBI registration:Â You need to be registered with SEBI (Securities and Exchange Board of India). This is the regulatory body for the securities market in India. You can apply for registration as a stockbroker with SEBI after obtaining the NISM certification.
- Experience:Â You need to have at least two years of experience in the securities market. This experience can be gained by working as a trainee with a stockbroker or by working in a related field such as investment banking or financial analysis.
Stock Broking Career Prospects
There were about 20 active stock exchanges in India with 7000 listed companies, 6500 brokers and 538 investment bankers registered with the SEBI. As per a Mint report, dated 20 May, 2014, 15 of the 20 stock exchanges in the country have opted to exit the business altogether. The 5 that will continue are the Bombay Stock Exchange (BSE), United Stock Exchange (which agreed to merge with BSE), MCX Stock Exchange Ltd (MCX-SX), National Stock Exchange (NSE) and the Calcutta Stock Exchange.
Prospects for the stock broking business are bright and for those who are qualified to handle this business and have the necessary personality traits to cope with it, the job openings are many.
As of November, 2014, the Bombay Stock Exchange (BSE) was rated 10th globally (market value-wise) among world’s stock exchanges, as revealed by data from the World Federation of Exchanges. Close behind is India’s National Stock Exchange (NSE), ranked 11th. “It is a matter of time before we make it to the top 5 stock exchanges in the world, said Kalpana Morparia, chief executive of J.P. Morgan India, told Wall Street Journal on 28 November, 2014. If the market cap of Indian companies keeps growing at its recent pace, the BSE and NSE could soon overtake Germany’s Deutsche Borse and China’s Shenzhen Stock Exchange. In short, opportunities in this field are going to be aplenty!
Stock Broker Jobs In India
Stock brokers help their clients buy and sell stocks and other securities, and they play an important role in the investment process. Here are some of the job titles for stock brokers in India:
- Stock Broker: This is the most common job title for a stock broker. Stock brokers help their clients buy and sell stocks and other securities.Â
- Investment Advisor: Investment advisors provide financial advice to their clients on how to invest their money. They may also help their clients buy and sell stocks and other securities.Â
- Portfolio Manager: Portfolio managers manage the investments of their clients. They typically have a team of analysts who help them make investment decisions.Â
- Research Analyst: Research analysts research companies and securities. They provide their findings to stock brokers and other investors.Â
- Trader: Traders buy and sell stocks and other securities on behalf of their clients or for their own account.Â
The job titles for stock brokers can vary depending on the company and the specific responsibilities of the role.
Here are some of the companies that hire stock brokers in India:
- Brokerage Firms: Brokerage firms are the most common employers of stock brokers. They provide their clients with access to the stock market and help them buy and sell stocks and other securities.Â
- Investment Banks: Investment banks provide financial services to businesses and governments. They may hire stock brokers to help them raise capital or advise them on mergers and acquisitions.Â
- Mutual Funds: Mutual funds are investment vehicles that pool money from investors and invest it in a variety of securities. They may hire stock brokers to help them manage their investments.Â
- Hedge Funds: Hedge funds are investment vehicles that use a variety of strategies to try to generate returns for their investors. They may hire stock brokers to help them execute their trading strategies.Â
- Family Offices: Family offices are private investment firms that manage the wealth of wealthy families. They may hire stock brokers to help them invest their money.Â
If you are interested in becoming a stock broker, you can find job postings on job boards, company websites, and through networking. You can also get a job as a stock broker trainee or intern to gain experience.
Salary/ Pay package
The salary package of a stock broker in India can vary depending on their experience, qualifications, and the company they work for. However, the average salary package for a stock broker in India is around ₹2.3 lakhs per year.
The salary package of a stock broker typically includes a fixed salary, a commission, and a bonus. The fixed salary is the base salary that the stock broker receives regardless of their performance. The commission is a percentage of the profits that the stock broker generates for their clients. The bonus is a discretionary payment that is given to the stock broker based on their performance.
Stock brokers who have more experience and qualifications can earn a higher salary. Stock brokers who work for larger and more established companies can also earn a higher salary.
FAQS
To become a stockbroker in Canada, you need to complete your education, obtain the Canadian Securities Course (CSC) certification, gain work experience, pass the Canadian Securities Exam (CSE), and register with the Canadian Securities Administrators (CSA).
To become a stockbroker, you need to complete your education, obtain the required certification, gain work experience, pass the required exams, and register with the regulatory body. You can also get hands-on experience, stay up-to-date on market trends and regulations, build a strong network, and be patient and persistent.
Stock broker requirements In India, you need to obtain a NISM (National Institute of Securities Markets) certification. This is a compulsory requirement for all stockbrokers in India. You can take the NISM certification exam after completing a diploma or certificate course in securities markets from a NISM-approved institute.
Stock broking can be a good career for people who are interested in finance and want to help others achieve their financial goals. However, it is important to weigh the pros and cons carefully before making a decision. Some of the pros include high earning potential, flexible hours, and the opportunity to help others. Some of the cons include high-pressure environment, long hours, risk of losing money, and strict regulations.
There are many stock broker training programs available, both online and offline. Some of the most popular programs include NISM, ICFAI, NSE Academy, STI, and IIBF. When choosing a program, consider the reputation, curriculum, faculty, cost, and flexibility.
The salary of a stockbroker in India can vary depending on their experience, qualifications, and the company they work for. According to AmbitionBox, the average salary for a stockbroker in India is ₹399,979 per year. However, some stockbrokers can earn much more, depending on their performance.
You need to have at least two years of experience in the securities market. This experience can be gained by working as a trainee with a stockbroker or by working in a related field such as investment banking or financial analysis.
To become a physiotherapist in India, you must complete a bachelor’s degree in physiotherapy from an accredited university. You must also pass the National Board of Examination (NBE) exam.
There are two main types of stockbrokers in India: independent stockbrokers and institutional stockbrokers. Independent stockbrokers work for themselves and provide investment advice and services to individual investors. Institutional stockbrokers work for banks, insurance companies, and other large financial institutions and provide investment advice and services to their clients.
The future of stockbroking in India is bright. The Indian stock market is growing rapidly and there is a growing demand for investment advice and services. As a result, there will be more opportunities for stockbrokers in India in the coming years.
Articles Updates:
01/09/2023: Content update, InterlinkingÂ
01/09/2023: Add Faq and infographic
