Many have watched films such as ‘Wolf of Wall Street’, ‘Boiler Room’ or ‘Wall Steet’ and would have been attracted to the fast-faced lifestyle and the opportunity to make a substantial amount of money. Becoming a stockbroker is not easy as the role itself is attached with pressure and expectation. If you are fresh out of College/university or a school leaver this article will give you a breakdown on what is required to be a broker and how to get started.
What does a stockbroker do?
The role of a stockbroker is portrayed to be a very glamorous one by the movies but the reality is that many candidates drop out within one month of doing the job. Expectations are high as the rewards are great, the role will involve you speaking to active investors in the market and offering strategies and solutions for their portfolios.
Many investment firms will look for individuals with experience or people that have been trained by the Institute of Broking. There are many trading courses out there but be careful as these ‘Trading’ courses will not offer you career progression as you may be led to believe.
The right Candidate
The Institute of Broking views up to 1000 applications a month for stockbroker roles, and with the requirements from our partners we know exactly what is required to get a job within stockbroking. Firstly we target candidates who read the financial news and understand what is happening in the market. Secondly candidates will have to demonstrate ambition on the phone. Thirdly a clear and professional tone is required. Financial related degrees are always advantageous but companies will also look for personal qualities such as confidence, drive and a willingness to learn.
A sales background is beneficial as investment firms will see that you have the tenacity and the drive to pick up the phone, complete deals and bring clients on board.
To progress to a senior stockbroker or trader you will need to pass the Investment Advice Diploma (IAD) level 4 and this can be taken through the Chartered Institute of Securities and Investment (CISI). The IAD consists of 3 examinations all of which are multiple choice and there is an option to take a 4 th exam which would allow you to advise in other financial products.
Why is a career in stockbroking great for you?
A career in stockbroking is one of the most rewarding jobs in the city as not only are you helping investors expand their portfolios but also there is potential for uncapped earnings. If you enjoy reading and studying financial markets then a career within this area is something you need to consider.
If you are a school leaver and you are serious about building a career you should strongly think about stockbroking but you have to make sacrifices and be prepared for a hard journey ahead. Ultimately you will get out what you put in.
What Companies Should I apply to?
Be on the look- out for companies that are fully FCA Regulated and Authorised as these companies are reputable and you can build a career within them. There are many unregulated firms that deal in Wine, Land, Precious metals and so on, but these companies usually have a stigma attached to them and unlikely a career can be built. Many FCA Regulated firms will sponsor you for your IAD qualification and help to further your development into a senior Broker