Stockbrokers buy and sell securities (eg stocks and shares) on a commission basis on behalf of private and commercial clients.
What does a stockbroker do? Typical employers | Qualifications and training | Key skills
A stockbroker will work with a range of clients, from individuals to large companies. Their role is to manage and look after their clients’ investments. They do this by offering three types of service: advisory, which means offering advice on which investments to make; execution only, which means buying or selling at the client’s request; and discretionary, which means being given control over all investments and making decisions on the client’s behalf.
Stockbrokers are responsible for:
- providing investment advice and recommendations
- monitoring UK and foreign stock market performance
- purchasing new share issues
- interpreting financial reports
- administering and evaluating clients' investment holdings
- marketing themselves to potential clients.
Stockbroking is a career that offers high levels of responsibility, good opportunities for promotion and impressive financial rewards including generous salaries and large bonuses. In return, however, long hours of work and high levels of stress are common.
Stockbrokers are employed by banks, financial houses and specialist brokers.
Vacancies are advertised by targetjobs, careers services, recruitment agencies, in The Evening Standard , The Financial Times , national newspapers, and specialist publications such as The Economist, as well as their online equivalents. Early applications to major employers are advisable. Relevant sector/company research, attending presentations and networking are essential.
A career as a stockbroker is only open to graduates. You can have a degree in any discipline , although some employers will prefer a management, business, financial or numerate subject. A number of institutions offer specialist postgraduate qualifications , which can be advantageous, as can relevant work experience gained via job shadowing, placements or vacation work.
- IT and maths skills
- Ambition and determination
- Ability to persuade
- Communication skills
- Strong decision-making skills
- Ability to work in a high-stress environment
- Very good negotiation skills
- Ability to build lasting relationships.
FAQs
What Do Stockbrokers Do? Stockbrokers serve as intermediaries between markets (e.g., exchanges) and the investing public. Brokers take customer orders and try to fill them at the best price possible. In return, they earn a fee known as a commission.
What is the role of a stockbroker explain? ›
What is a Stockbroker? Stockbrokers are individuals who buy and sell stocks and other securities for retail and institutional clients, through a stock exchange or over the counter, in return for a fee or a commission.
What it's like to be a stockbroker and the duties the job involves? ›
Stockbrokers are financial professionals who buy, sell and trade financial securities for their clients. Some stockbrokers may also act as financial consultants, helping people with all aspects of finances, from choosing the right investments to personal budgeting.
What is the role of a broker? ›
Key Takeaways. A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
What does a broker do in simple terms? ›
A broker is a person or company authorized to buy and sell stocks or other investments. If you want to buy stocks, you will almost always need a broker — essentially, a middleman — to place those orders on your behalf.
What is the duty of the broker? ›
The primary duty of the broker is to listen to and understand you and your family. What are your plans, what are the desires of your family, at what stage of life are you? A good broker takes the time to listen to you.
What does a stockbroker do on a daily basis? ›
A stock broker's day is all about trading. They start off the day researching and contacting their network of clients to discuss their portfolios before making any moves. They make plans for what to buy and sell.
Which of the following is the main duty of a stockbroker? ›
The primary job of a stockbroker is to obtain buy and sell orders and execute them. Many market participants depend on stockbrokers' knowledge and expertise regarding the dynamics of the market to invest in securities. A stockbroker can work either individually or with a brokerage firm.
What is a broker's responsibility? ›
A broker is a sales professional who executes sales transactions between two parties in exchange for a commission. Present in real estate, finance and other sectors, brokers facilitate the sale of financial products, property assets, intellectual property, material goods and more.
What are the obligations and responsibilities of stock brokers? ›
The stock broker shall inform the client and keep him apprised about trading/settlement cycles, delivery/ payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant stock exchange where the trade is executed ...
They advise people on appropriate investments based on the client's needs and financial ability. The people they advise may have very different levels of expertise in financial matters. Finding clients is a large part of a broker's job. They must create their own client base by calling from a list of potential clients.
What is the role of stock brokers? ›
A stockbroker is simply the person who helps you trade stocks. He or she is the one who executes buy and sell orders on your behalf. Stockbrokers could be individuals or brokerage firms but their roles are still the same in terms of handling trade transactions for both individuals and institutions.
What is the lifestyle of a stockbroker? ›
The trading environment is a fast-paced, high-intensity workplace and brokers may make more than 100 trades per day, depending on their approach. During trading hours, stockbrokers continually monitor the market and make assessments on trades, whether buying or selling, to maximise profit for their clients.
What does a stock broker do in a day? ›
A stock broker's day is all about trading. They start off the day researching and contacting their network of clients to discuss their portfolios before making any moves. They make plans for what to buy and sell.
Do stock brokers make a lot of money? ›
Stockbrokers get paid more than most workers. Estimates of the median combined salaries and commissions received by people who sell stocks and other securities to investors range from $62,910 to $149,664 a year.
Is a stock broker a stressful job? ›
The brokerage industry can be rewarding, but also demanding and stressful. You may face long hours, tight deadlines, high expectations, and intense competition.
