Stockbroking is the function of buying and selling stock shares or bonds for other people through the stock market or over the counter at a fee. Stockbroking has become so common with more brokers coming up every day and this is mostly because of the many improvements that have come about in the stock market such as technology which has totally changed the way people used to trade stocks and has opened up more opportunities for stockbrokers.
Stockbroking in the past was not an actual money making job until people started making as much as a billion dollars and there everybody was broking stocks.
Some very interesting things have happened in the stockbroking sector which has proven to be growing really fast, a serious stockbroker is always watching out for updates.
In the past, only the people who could afford to pay for a broker in order trade but recent news on the stock trading show that with the emerges of discount brokers and online stock brokers , almost anybody who wants to trade stocks can do so with ease. The discount brokers charge relatively less than the other brokers but they may not offer financial advice, solutions or any other support other than the trading.
Some brokers work for brokerage companies and others are independent. In some countries, a stockbroker must be working for a brokerage firm for example in Canada, in others, a few exams must be passed.
Starting as an independent broker can be a bit hard since you are making your client list from the very ground but once it picks up you are good to go , however, most brokers seem to be choosing to broke for firms since the clients are already there.
A stock broker advises clients on trades, manage their investments and make decisions for them. A good stockbroker should not only be good at math but also pose some skills such as communication skills, decision making ability and good IT skills. Online broking has become more popular with more people choosing to communicate with their brokers online.
Online stock broking is something many people seem to be very interested in but to make the perfect 21st-century stockbroker, one needs a lot of experience and due to the complicated nature of investments and trades at least have a degree in the financial or business field.
Market regulators have gone further and added laws that make it easier for anybody to buy and sell stocks with firms being told to communicate with investors in different languages including vernacular languages. Documents containing the obligations and rights of the broker, dos and don’ts of stock trading should all be written in many languages.
Due to the huge growth in the stock broking industry, fraud cases have increased. This has proven to be a big problem for people looking for brokers to work with and has actually affected the industry’s reputation.
There have been some cases of brokers inducing clients to trade on false information and a lot of overpriced stocks.
The regulators together with the government have put in place strict rules and guidelines to punish those found exploiting the clients or in any other form of stock frauds. Stock seminars have also been put in place by companies and other interested parties.
A sensitive topic which has also come up is the issue of inequality in the financial sector which has been affecting the stockbroking industry too. Women are said to be paid less than men by 60% in stockbroking this pay gap shows exactly how bad the situation is for the equally talented gender.
It is, therefore, important to do your research well before you start stock broking because no one will hire a broker with a bad reputation, a scandal or a bad trading record.
One can choose to join a legit trading firm and companies with actual opportunities for your clients such as CMC Markets to give your customers better services and add a little confidence in your services.
Stockbroking needs a thick skin because the clients expect nothing but more profits but statistics show that people are making good money from stockbroking.
Stockbrokers are sales people, they get commissions when you trade.