Want to know How to become a Stock Broker in India ? Well you have landed on the right article There is nothing better than working for a stock broker if you enjoy selling and you have a passion for finance. Working for them may be just what you're looking for.
Stockbroking can be a good career choice for individuals who are ambitious and hardworking since it provides a high earning potential as well as the fulfilment of developing one's own client base.
There are many factors to consider in order to decide whether stockbroking is the right job for you, including the primary responsibilities and the education requirements, when making that decision.
Stockbroking is an exciting and challenging activity, yet there are many things to keep in mind. There is no doubt that there is no denying the fact that there are many movies that feature stock brokers being portrayed as agents of fortune, such as Wolf of Wall Street, Scam 1992, Bazaar, etc.
However, nobody seems to be talking about how you can become a stock broker? Today you will learn precisely how to become stock broker in India. We examine the process of becoming a stockbroker in this article, as well as share with you some of the primary duties of this job.
We also answer some of the questions that are asked most frequently about this career.
How To Become a Stock Broker in India
Who is Stock Broker
Stockbrokers are middlemen authorised to buy and sell securities on an investor's behalf on a stock exchange. Exchanges are where stocks are traded. A private investor, however, is not able to trade directly on an exchange.
It is necessary to have an intermediary who will help you to complete the transaction in order to buy or sell stocks through exchanges.
You can use this middleman to purchase and sell stocks and other securities on your behalf through a person or company who is authorised to do so on your behalf.
In the stock trading industry, a person or a company such as this is called a stockbroker. The majority of stockbrokers are employed by a brokerage firm, but they could also be independent contractors.
The stockbroker charges a fee or a commission in return for providing this service. Stockbrokers offer a service to investors when they perform a service for them.
To understand what stockbrokers mean, it is important to understand their purpose. Brokers are tasked with the task of buying and selling shares on behalf of their clients.
Besides their role as stockbrokers, stockbrokers also provide investors with information that helps them to make accurate investment decisions.
Stock Broker in India
Despite the differences in meaning, equity and stock are actually interchangeable terms and essentially the same thing. The stock market is where these securities are traded. On the stock market, there is a place for sellers and buyers of stocks to meet up.
This can be explained, in part, as a place where the shares of companies that are listed on the public stock exchange are traded. If a stock is listed on a Stock Exchange, then it can only be bought or sold there.
There can be a perception that stocks are exchanged on the stock exchange as being places, associations, or institutions where stockbrokers and traders are free to trade in securities that are listed on the exchange, such as stocks.
Having a knack for learning on the fly is essential if you wish to become a stockbroker. You also need to be able to adapt to a constantly changing environment in order to be successful.
Students in this article will gain a thorough understanding of the various fields of study they can choose from as they prepare for a career as a stockbroker, what it takes to become a stockbroker, what certifications are available, and where to find stockbroker training programs.
- Please submit your New Membership Application to the Membership Services Department at NSE in order to begin the process.
- An application is sent for evaluation to the Membership Recommendation Committee and the Membership Selection Committee after it is accepted by the Membership Services Department.
- The Member Compliance Department evaluates the application and forwards it for approval to the Membership Selection Committee.
- Once your application has been approved, you will receive a Provisional Membership Offer Letter.
- The SEBI requires that you submit documents before you can be registered. You will receive the SEBI Certificate once it is approved, and you will receive the trading system afterward.
Eligibility Criteria To Become A Stock Broker
As a condition of membership, the entity's owner, designees, authorised directors or partners, or compliance officer MUST have knowledge of either the Securities Market (Basic) Module or the Compliance Officers (Brokers) Module, or any relevant module on the following list where membership is sought:
Derivatives Market (Dealers) Module
Capital Market (Dealers) Module
Derivatives Certification Examination
National Institute of Securities Markets (NISM) Series I Currency
Deposit and Networth Requirement to become a broker in Stock Market
The table below illustrates the deposit requirements and net worth requirements for becoming a stockbroker in the Stock Market.
Segment | NSE Cash (₹ in lakhs) | NSE Non-Cash (₹ in lakhs) | Deposit (₹ in lakhs) | Net Worth (₹ in lakhs) |
|---|---|---|---|---|
Commodity Derivatives | - | 5 | 5 | 50 |
Futures & Options | 25 | - | 25 | 75 |
Capital & Market | 26.5 | - | 26.5 | 75 |
Currency Derivative Segmen | 2 | 13 | 15 | 100 |
Fees And Other Charges To Become A Financial Broker
- Fees for processing applications: Rs. 10,000+ applicable taxes.
- Annual subscription charges (Capital Market Segment): Rs. 50,000 p.a..plus applicable taxes.
- Fees for admission:
- All segments (with the exception of Only Debt): Rs. 5,00,000 + applicable tax
- The "Only Debt" segment will include: Rs. 1,000,000 + applicable taxes
- Transaction charges (Currency Derivatives segment) Rs. 50,000 p.a. + Applicable Tax.
- Minimum transaction charges (Futures & Options segment): Rs. 1,00,000 p.a. + Applicable Tax.
Field In Stock Broking
The ability of the student to work with a Stock Brokerage firm or to work as a stockbroker, sub-broker, or dealer is an important factor to consider.
The student has various options available to him or her if he or she wishes to practice as a registered stockbroker in any stock exchange. There are a few popular options that you can choose from:
1. Stockbroker
In order to register as a member of the Stock Exchange, you will need a registration ID in order to fill out the registration form. Having received the financial aid, you will be able to start or take up the stock brokerage company.
To become a member in a brokerage firm, you have to pay several lakhs, and then the broker can share the client's membership ID with them so that they can start trading with the broker.
2. Sub-Broker
Under this type of arrangement, sub-broker practices on behalf of registered stockbrokers and deals under an ID that belongs to a registered member of the stock exchange or a member's ID of a stockbroker.
3. Dealer
As a sub-broker, you have the option of hiring a dealer to input your trades on the stock exchange portals for you. For the brokerage firm or sub-broker, the dealer enters all of the trades on the computer.
4. Personal Financial Advisor
In addition to providing investment and financial advice, personal financial advisors also act as a consultant/expert to their clients. Their role is to help clients reach their financial goals by planning strategies and recommending financial instruments.
Certificate Course In Stockbroker
By following these qualifications, aspiring stockbrokers can become qualified to become stockbrokers. However, there are a number of other things you need to do before you become a broker.
The student will have an advantage in qualifying easier if he or she has other things, such as certain certifications related to stock broking. There are a number of Certificate courses available for stockbroking, for example:
- NSE's Certification in Financial Markets
- A PG Diploma in Capital Market and Financial Services
- Post Graduate Diploma in Fundamentals of Capital Market Development
- Certificate Programme in Capital Markets
- NSE's Certified Market Professional
Top Institutes Offering Stockbroking Courses
Stock broking courses are offered by a number of institutes in India. In order to increase their value as stockbrokers, brokers can obtain a professional degree in stock trading.
The following list contains the top stock broking institutes that are offering stock trading courses across the country:
All India Centre For Capital Market Studies
The UTI Institute of Capital Market
Institute of Company Secretaries of India
The Orion Institute of Capital Market
Mumbai Stock Exchange Training Institute
Institute of Capital Market Development
Institute of Financial and Investment Planning
Institute of Chartered Financial Analysts of India
Stock Market Jobs
A career in stockbroking is becoming one of the most successful and popular fields to work in nowadays. A Stockbroker's salary is usually quite high, so that he or she can live comfortably and live a peaceful life.
In order how to become stock broker in India you need knowledge about finance, investments, accounts, insurance, etc. as a stock broker will have a wide range of skills. Let us have a look at the various job profiles that are available.
- Financial Advisor
- Security Sales Representative
- Capital Market Specialists
- Securities Broker
- Independent Agent
- Financial Managers
- Securities Analyst
- Investment advisor
- Security Traders
- Accountants
The job entails and does not limit to the following areas:
- Financial institutions
- Brokerage firms
- Investment consultancies
- Insurance Firms
- Mutual Funds and Pension funds
- Investment banks
- Research
- Large Business Organisations
- Magazines and Newspapers
Advice
The advice above will be of great assistance to anyone who wants to become a successful stockbroker. In addition to patience and a thick skin, the job also requires a lot of hard work on a daily basis.
Remember that the most important thing that separates you from your competition is your willingness to persevere in the face of doubt.
Conclusion
- Starting a career as a stock broker isn't as hard as you think. All you have to do is fill out and submit a membership application that you can find in our Membership Services Department.
- The compliance, recommendation, and membership selection committee will then review the application and approve it for submission if it meets certain criteria.
- SEBI Certificates will be issued after approval, and the trading system will be provided after getting approval from SEBI.
- If you want to become a stockbroker, you should b at least 21 years old and be an Indian citizen. You should also have completed a Higher Secondary College or 10 + 2 level in order to qualify.
- In a month, a stockbroker can earn a commission of between Rs. 5000 and * 100 Crore.
- If you are seeking membership in a stock exchange, one of the following modules should be completed: the Securities Market (Basic) Module, or the ComRs.liance Officers (Brokers) Module.
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Frequently Asked Questions
Q. How much does a stock broker make in India?
Ans. There is a wide range of Stock Broker salaries in India, with a minimum salary of Rs. 0.2 lakhs and a maximum salary of Rs. 5.0 lakhs. Stock Broker salaries are based on 153 salaries submitted anonymously to Glassdoor by Stock Broker employees.
Q. What qualifications do you need for a stock broker?
Ans. You should be a citizen of India who is at least 21 years of age. Stockbrokers should have completed at least Higher Secondary College
(HSC) or 10 + 2 in order to be able to become one.
As a partner, assistant, clerk, remisier, or apprentice to a Stock Broker, you must have been in the industry for at least two years.
Q. Is stock broker a good career in India?
Ans. There is no doubt that a career in the stock market is an excellent option. Because of the economic growth and liberalisation, a variety of employment opportunities have been created within various organisations.
An Indian stock broker can work for a number of companies and agencies in India as well as abroad.