Become a Stockbroker

For people who enjoy a fast-paced job with an unlimited earning potential, this is an outstanding career option.

Stockbrokers buy and sell various types of securities through a stock exchange. The largest part of their compensation comes as commissions, although many stockbrokers earn a base salary as well. This commission structure means that the best brokers can make massive amounts of money.

Stockbroker Training

In order to qualify for a stock broker position in the United Kingdom, you’ll need a few different qualifications. First, you’ll likely need to obtain a bachelor’s degree in economics, finance or business. This is not always the case, but it is a very common requirement.

After you have obtained your education, you will want to find an internship in the finance industry. Most stockbrokers try to find positions with investment banks once they have finished school. If you work hard and develop contacts here, you may be lucky enough to gain a job offer.

Next, you’ll need to be registered as an authorized person with the Financial Services Authority (FSA). You will also need to obtain your qualification from the Securities and Investments Institute or the CFA Society of the UK.

Most stockbrokers learn the ins and outs of the profession while they are on the job. This is the point where they learn what it takes to build a client base and make sales. Financial knowledge is important, but your talent for sales will really make the difference in how well you do in your career.

Job Opportunities

It’s important to note that stockbroker positions are highly competitive, since many people see them as a ticket to a financially rewarding future. However, the truth is that many stockbrokers do not last beyond their first year in the industry. Those who do must hit the ground with their feet running and build a client base quickly.

Once you’ve made a name for yourself within your firm, you may be asked to move into a management role. These positions are highly coveted and the earnings can be quite impressive. Keep in mind that management positions within a brokerage firm come with a whole different set of responsibilities and expectations.

As a “prop trader” you will usually start out at around £30,000, although this varies depending on the position you obtain. Of course you can make much more than this depending on your commissions and bonuses. The very best stockbrokers can make well over £1,000,000.

Your earnings as a stockbroker can fluctuate depending on the economy and market conditions, but the biggest factor is your ability to sell. If you are a good salesperson then you will not need to worry about the state of the economy or whether the markets have been in decline. The financial industry is not for everyone, but if you are focused and determined you can earn a fantastic income.