One of the most excellent things about working as a Stockbroker is that there are no typical working hours. In a Stockbroker job description, it doesn’t say that you will be your own boss, technically you are your own boss who decides when and with whom to work. It is almost like running your own small business, but what is the actual Stockbroker job description? and what does a Stock broker do?
While it may sound like leisure to many, but it usually takes years of hard work and experience to reach that level in business. Your initial years as a Stockbroker can be a little grueling where most of your energy would be directed towards finding loyal clients with some assets to invest. While some brokers may have huge connection or client network, the vast majority often has to spend exhausting days marketing themselves during their initial years to become a successful Stockbroker.
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Duties of a Stockbroker
As a Stockbroker, you would have to look after the financial portfolios and manage the investments of your clients, which could be large organizations, a company or even an individual. In a Stockbroker job description it is your task to ensure the greatest financial return to your clients and help them buy and sell the desired stocks, shares as well as other financial products on the advice of a financial analyst.
Typically, a Stockbroker is often involved in offering three kinds of services to their clients. One of these three could be discretionary service wherein the Stockbroker is completely responsible in handling all the investments of their clients and can even make decisions on their behalf. The other type of service could be that of an advisory wherein the Stockbroker makes the clients aware of the various investment options and advices them on the same. The last one could be the task of only execution where the Stockbroker just buys and sells financial products like stocks or shares when asked to and has no role in giving advices to the clients. As you can see a Stockbroker job description is juggling day in day out, you must be flexible.
Financial Investment Advice
The people who pay to hire a Stockbroker can only be convinced if they get trusted advice on all of their financial matters. A Stockbroker should have a profound knowledge of the stock market and help their clients to execute any financial decision, this is a important point in a Stockbroker job description. You should excel in developing excellent investment plans for clients based on the information available to them and make them acquainted with their various investment options. The clients in turn are expected to tell their Stockbrokers how much they are willing to invest, what is their risk tolerance or for how long they are willing to invest.
This job may seem quite easy to many owing to the simple task of buying and selling stocks yet the decision involves a lot of efforts. Stockbrokers spend most amount of their time researching the market or a particular share, so that they can give a feedback to their clients on whether it is wise to make that investment decision or not. A Stockbroker should be well updated with the media or any other sources that provide the information of the market, it also stated on a Stockbroker job description you keep up-t0-date with the markets, so be sure have a list of resources you follow.
While this may be a little never wrenching but there is other types of Stockbrokers too who are simply commissioned to help the clients buy or sell a share without giving them any financial advice. For some it is the luckiest job as the entire responsibility of buying and selling an investment rests with the client.
A key Stockbroker job description is working with new clients and prospecting. For every trade a Stockbroker makes, they are paid a commission on it. Thus, the more you get potential clients, the heavier commission you are paid. However, getting a client for yourself can fetch a lot of your time. One requires a strong advertising or a great network to guarantee themselves loyal clients. They have to serve the best to their clients so that they are completely satisfied with their services and can even refer them to their other friends and family.
Record of Transactions
The transaction records of a client are necessary for tax purposes and thus must be handled with utmost care with all the transaction details correctly evaluated. It is the complete responsibility of the share broker to keep all these details up to date with nothing missing in terms of documentation or book keeping and make them available to the clients or agencies when asked.
A Stockbroker could be either working with a brokerage firm or may have set up his own venture. A stockbroker usually associated with a brokerage firm is often entitled to securities and other benefits and also has the advantage of dealing with walk in clients and thus the task of fetching your own clients would be minimal. A stockbroker can make some serious money, only if he does his homework well.
This means showing up at work a couple of hours before the market opens and researching the pros and cons of the market in advance or contacting current clients with various recommendations and advices for their financial portfolio, spending their free hours networking or advertising about themselves. Not just this, a dedicated Stockbroker should also have other qualities apart from this for becoming successful.
Strong Competitive Drive
A Stockbroker should have a strong competitive drive, this is an important skill as a Stockbroker job description, you should be able to withstand any type of competition. Also, one requires a completely analytical mind for this job and as a Stockbroker one should possess the confidence to make huge decisions with their client’s money. A broker with a language skill like German or French can also be an advantage over others if one wants to deal with overseas clients. The job of a Stockbroker requires plenty of initiative as well as lots of self-motivation as there are going to be exhaustive days struggling to get clients.
The duties of a Stockbroker gives us an idea how demanding this job is. It requires a lot of efforts to juggle all the work and still remain equally active on the trading floor. This is one of the reasons why many fail and look for alternate career options that require much lesser efforts than a Stockbroker’s job. We recommend you apply to become a junior Stockbroker and then become a fully licensed Stockbroker.
Working Environment of a Stockbroker
Over the course of past two years, thousands of management consulting firms have come up all over the world, which are providing effective solutions to high-profile clientele base. A lucrative investment is something that most of the clients look for, and this is something which stockbrokers take charge of.
With areas such as Houston, Los Angeles, New York, Chicago and Dallas buzzling with financial service agents, the demand of stockbrokers has always been skyrocketing. Eventually, electronic trading will be suppressing the scope of verbal auctions. A recent trend reveals that most of the stockbrokers tend to spend more time than their usual hours per week sitting in front of a computer instead of analysing the market on the floor of the stock exchange.