Stock Broker

What is Stock Broking ?

Would you like to predict the impact of changes in policies, inflation rate and changing economic trends on the share market? Do you read the business pages before the sports news ? Do you follow the ups and downs in the share market? If the answer is yes, then how about stock broking as a career choice for you ? Deciding on a competent financial advisor is an important decision for everyone !

Most people buy their stocks through a broker, a traditional route of investing in the stock market. Stock brokers act as agents for buying and selling stocks, bonds, and mutual funds, and are regulated by the Securities and Exchange Board of India (SEBI).

The work of stockbrokers has become a challenging one as it incorporates specialized knowledge as well as professional acumen. Stock market and related functioning has become computerized which obviously demands information management skills as well. Stockbrokers commonly divide their operations between private clients and institutional work. Alternatively some brokers act only as dealers while others are principally advisors. In large firms stockbrokers deal with and advise smaller firms or work for both individual and institutional clients.

Stockbrokers can be:

  • Securities Traders
  • Securities Brokers
  • Securities Analyst

What do I have to do ?

A stockbroker invests in the stock market for individuals or corporations. Only members of the stock exchange can conduct transactions, so whenever individuals or corporations want to buy or sell stocks they must go through a brokerage house. Stockbrokers often advise and counsel their clients on appropriate investments. They assess the financial requirements of their clients and advise the best investment for them, thereafter facilitating the purchase and transfer of stocks. Stockbrokers spend their time in a fast-paced office, and spend many hours on the phone building up a client base.

As the condition of capital markets is constantly improving and channels like NDTV Profit and CNBC have created greater awareness, the investment scenario has started drawing attention of a lot more people than before.


As a stock broker, you get 1 % commission of the market price of buying or selling shares and stocks; 2 % for mutual funds and 0.5 % after allotment of shares in an Initial Public Offer. Therefore, your income would depend on the volume of business you are able to generate.

What should I study ?

You can do your Plus Two from any subject steam. However, subjects like Commerce, Accounts, Economics, Maths and Statistics are useful. After your Pus Two, there are many routes to this field such as Accountancy, Statistics, Economics, Financial Management etc. To specialize as a stock broker you should attain membership of a recognized stock exchange. No stock-broker or sub-broker can buy, sell, deal in securities, unless he/she holds a certificate granted by the Board under the regulations. The National Stock Exchange’s Certification in Financial Markets (NCFM) enhances career opportunities.

If you want a career as equity analyst you can pursue a postgraduate diploma course in Equity Research and Analysis offered by The Institute of Chartered Financial Analysis of India situated at Hyderabad, India.

Apart from academic requirements and financial awareness, you must have an analytical and logical mind. Tact in dealing with clients is also essential.

NCFM is an online testing system, a revolutionary concept in administration of examinations and the only one of its kind today in the country. It tests the practical knowledge and skills required to operate in the financial markets in a secure and unbiased manner and awards certificates based on relative merits thus ensuring that the calibre of persons entering this field is kept high in the best interests of a mature and vibrant market.

The entire process of testing, assessing, scores reporting and invigilation in the NCFM is fully automated. The system is operated through an intranet facility by using a central World Wide Web server with terminals located at each of the designated test centres to be used as an examination front end. Communication between the central server and the test centres is achieved through VSAT/leased line network. The financial markets are going to be the turf of certified professionals very soon due to regulatory compulsions and/or initiatives of the industry. By imparting comprehensive knowledge and skill in the chosen field, NCFM enhances career opportunities for NCFM certified persons.

What next ?

Given the present complex situation of our capital markets, stock brokers have to face challenging tasks. The specialized knowledge and professional acumen required has made the job of brokers a highly skilled one. The work of stock brokers depends upon the kind of operations they engage in. Some brokers like to practice with individual clients while others work for institutions. Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatations of shares as they are expected to have sound knowledge of capital markets.


Birla Sun Life, DSP Merril Lynch, Dalmia Securities, Kotak Mahindra Finance, Dalal and Broacha Stock Broking Pvt. Ltd. are some of the major stock broking companies in the market. Most firms recruit freshers as Assistant Relationship Managers and Relationship Managers. 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. A relationship manager (RM) with an MBA in Finance can draw Rs. 2.4 lakh to Rs. 4 lakh a year (depending on the firm). Non finance RMs earn less. A good RM can rise to become a team leader, and zonal manager of a branch.

Due to constant changes in the capital market and the economy, the demand of professionals in this field has increased tremendously. Besides jobs in the stock markets, opportunities also exist in Securities and Exchange Board of India (SEBI) and other organisations like mutual funds, investment consultancies, broker firms, insurance companies, merchant banks, pension funds and other financial institutions.

Capital markets in India are going through a major reform phase. Initiatives taken by SEBI in discipline, reform and greater transparency in the markets has had positive effects on their performance. Foreign institutional investors, mutual funds and even individuals have once again started posing confidence in the capital markets. This has enhanced prospects for brokers, investment and equity analysts.

So if you have a deep interest in analyzing the “bull” and the “bear”, then it is a good career for you. You can also start your own consultancy !

Where should I study? 

Postgraduate programmes in capital market studies and in stocks and securities are available only in a few selected institutes like:

BSE Institute Ltd., Mumbai
Course:Post Graduate Programs in Global Financial Markets

 Long Term Certification Courses

  • Global Financial Markets Professional Program (GFMP)
  • Certificate Program on Capital Market (CPCM)
  • Certificate Program on Commodity and Currency Markets
  • Comprehensive Program on Technical Analysis (4 Weeks Part Time)

JDC Bytco Institute of Management Studies and Research, Nasik 
Course: Post Graduate Diploma in Capital Market Studies

National Stock Exchange, Mumbai 
Course: Certificate in Financial Market (Online Programme) 

Narsee Monjee Institute of Management Studies, Mumbai
Course: Masters in Business Administration MBA (Capital Markets), a unique initiative with the Bombay Stock Exchange.

Pune University, Pune
Course: PG Diploma in Capital Marketing Management, Diploma in Financial Services (D.F.S.)
Focus Educare Pvt Ltd, Bangalore
Course: Capital Market Programmes

Institute of Financial & Investment Planning, Mumbai
Course: PG Diploma in Advanced Financial Planning and Wealth Management

Institute of Company Secretaries of India, New Delhi
Course: Post Membership Qualification (PMQ) course in Capital Market and Financial Services)

Institute of Chartered Financial Analysts of India (ICFAI), Hyderabad
Course: PG Diploma in Financial Analysis