Who is a Stock Broker?
Definition of Stock Broker: A Stock Broker is a person or professional who executes buy and sell order of shares and other securities like currencies, commodities on behalf of their clients.
You should know in India we can not buy and sell shares directly from stock exchanges like NSE and BSE. To buy and sell stock or other securities we need a representative. And the representative who helps us to buy shares and other securities from the Stock Market is known as Share Broker.
A stock broker may also know as a registered investment advisor, representative or simply a broker.
What does a stock broker do?
A stock broker works as an agent in stock market who help their customer to buy and sell shares or other securities like IPO, Mutual fund, commodities.
Types of Stock brokers In India
There are mainly three types of share brokers are in India
Full-Service Stock Brokers:
Full-service stockbrokers are who provides a large number of services to its customers along with buying and selling of shares. Which include research financial advice, Insurance broking, IPO, Currencies, Commodities, tax planning and retirement planning, and many more.
Bank Promoted Stock Brokers:
Bank promoted share brokers means the bank in India who recommend investment with their associated sharebrokers. Invest in financial instruments like stocks, IPO, commodities, mutual funds, and currencies.
Discount brokers are those who execute buy and sell orders of their customers at a reduced commission rate. But like a full-service stockbroker, they don’t provide a large number of services to their clients.
Who is eligible to work as a stock broker?
There are no special eligibility criteria in India to work as a Stock Broker. But you should be a graduate with a minimum of 2 years of experience in Stock Broking Companies. You can also work as a sub-broker under a share broker before work as a Share Broker.
To work as a Sub Broker ( Agent Of A Broker). You will need to have a 12th Pass certificate and an NCFM (NSE’s Certification in Financial Markets) certificate. An NCFM certificate is provided by NSE ( National Stock Exchange) of India. NSE conducts the exam for this certificate and one can pass this exam very easily in 2-3 months of preparation.
How to Become a Stock Broker In India?
To become a stockbroker in India you will firstly need to register and become a member of Stock Exchanges in India. You will also need to register with SEBI.
SEBI monitors all the Share Brokers, To protects the rights of the investors and acts like a regulatory body in Stock Market.
How Much A Stock Brokers Earn
A stockbroker earns money as a commission for their service to their customer. This commission is known as brokerage. Brokerage rates depend upon the services availed by the customer.
What Is Salary Of a Stock Broker
As I stated above generally Stock Brokers takes a commission from their customer for services availed by the customer. But if you will work as an agent of a stockbroker or as a sub-broker then Salary will vary from 3 lakh to 5 lakh per annum. If you will work very hard and if you will have a large active trader then you can earn in crores.
I hope you have understood who is a Stock Broker and how much they earn and how one can become a share broker In India. Please leave your valuable comment to improve this content.