What Criteria Is Important To Enter Finance Brokerage Stock Company

What Criteria Is Important To Enter Finance Brokerage Stock Company

What is a ‘Stockbroker’?

A stockbroker, also known as a Registered Representative, investment advisor or just broker, is a professional individual who manages and controls buy and sell orders for stocks and other securities on the stock market, or over the counter, for an additional fee or commission. Stockbrokers are usually working alongside a Finance Bokerage firm and manage transactions for retail and institutional customers. Finance Brokerage firms and broker-dealers are commonly known as stockbrokers.

  • BREAKING DOWN ‘Stockbroker’

Previously, it was believed that only the wealthy could afford the cost of hiring a broker to gain access to the stock market. However, developments in technology, such as the Internet, gave a boost to discount brokers that opened opportunities for small scale investors to trade the stock markets at a minimal fee. This has allowed absolutely anybody to invest in the stock market, even individuals who are situated overseas. One negative side to this is the lack of customized service which only a specialized stockbroker can offer.

  • Educational Requirements needed:

A bachelor’s degree in finance or business administration is a necessary requirement for stockbrokers. A vast understanding of financial laws and regulations, accounting methods, principles of economics and currency, financial planning and financial forecasting are required to strive for success in the field.

  • Various Country Licensing Requirements:

Various countries have different specifications for stockbrokers. In Canada, future stockbrokers should be employed at present by a Finance Brokerage Stocks company and have to complete the Canadian Securities Course (CSC), Conduct and Practices Handbook (CPH) and the 90-day Investment Advisor Training Program (IATP). In Hong Kong, candidates should be working for a licensed brokerage company and should pass three examinations with the Hong Kong Securities Institute (HKSI). However, being successful at all three exams will not assure a license as it will have to be approved by the financial regulatory body.

Categories: Finance

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