A stock broker is a profession that is now very popular. Its development gives financial independence and freedom, which is desirable for everyone. In this case, you do not need to work "for uncle" and visit the office daily.
Definition
A stock broker is an organization or an individual who acts as an intermediary between a buyer and a seller and receives a certain fee in the form of a commission. How to get this profession in Russia?
How to become a broker
This process can be divided into three steps:
- The first step is to determine if you have the ability to think analytically, stress tolerance, communication skills and great patience.
- The second step is theoretical preparation. A good stockbroker has an economic education or takes specialized courses. There are similar courses at many economic universities. After their completion, the applicant passes the exam and receives a certificate of the corresponding orientation.
- The third step is to obtain a license. Since March 2014, the Department for Admission to the Market has been engaged in licensing Russian brokers. In more detail we will tell about this procedure below.
Mandatory qualities for a broker
- Good memory and reaction.
- English proficiency.
- Strong nerves.
- Knowledge of economics and mathematics.
- Sociability.
- The correct reaction to the market situation.
Controversial situations regularly arise in the stock market, so the broker must be able to resolve them. The absence of at least one of the qualities listed above can lead to significant losses for customers.
It happens that clients themselves blame brokers for their own mistakes. In this case, in any serious company, there is a strictly regulated procedure for communication between an employee and a client.
How to get an exchange broker license?
To do this is not as simple as it seems at first glance. The most important condition for obtaining it is sufficient capital (at least five million rubles). In addition, an accounting system and appropriate technical support are required.
If you decide to carry out brokerage as an individual, in addition to the license, you will need a good level of theoretical training. You will need to take courses that last from 2 weeks to 2 months. And the FSFM is directly involved in issuing licenses. The term for the execution of this document is from one month.
Work specifics
Sometimes a stock broker can work for himself. In this case, he is called a dealer or trader. A single broker searches for clients on his own. He also sets the size of the commission. In the case of work for the company, the broker receives a fixed salary. And, of course, the percentage of commission earned.
Transactions
Before starting work, an exchange broker, whose salary starts from a thousand dollars, enters into a service agreement with a client. Separately, you can sign a contract of commission or commission. The main points of these documents are approximately as follows:
- Under a service agreement, the broker manages the client’s money and concludes transactions on his behalf.
- Under the commission agreement, the same thing happens, only on behalf of the broker.
- Also, the transaction may be concluded at its own expense, but on behalf of the client.
Job responsibilities
- Consultations. This includes all the moments associated with the conclusion of transactions on the exchange. Also, the broker can give a brief analysis of specific stocks.
- Mediation. This is the main duty. Client orders are accepted and executed on the best terms for him.
- Representation of interests.A stock broker acts as a referent in the stock market, entering into transactions at the client’s expense under his or his name.
- Work with documents. If there is an urgent need, then a representative of this profession can do paperwork.
If a novice trader chooses a professional stock broker engaged in asset management, he will quickly be able to understand the nuances of trading and join the work. The broker himself has a personal interest - the more the client earns, the higher his remuneration (percentage of profit).
However, there is no constancy and stability on the exchange - regardless of the broker's professionalism, he will not guarantee profit and protection against losses. If you have met a dealer who wants to take your capital into trust management and guarantees a colossal profit, it is better to stay away from him.
Career development
Now all stock exchanges are equipped with an electronic trading system. The broker sitting at the computer, can only enter the application and click the mouse to place it.
But more recently, only “voice trades” were held on all exchanges. The brokers gathered in one room shouted out applications, and the operators entered them into the trading system. By the way, such a stock pit still exists on the London Futures Exchange, where trading is carried out without the use of computers. The advantages of voice trading were openness, ease of control over the execution of applications, lack of the possibility of fraud. But at the moment, the stock pit is a relic of the past.
