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Master of trade

Stock brokers are involved in buying and selling shares for clients for a commission. There are some big brokerage firms, however, who do not restrict themselves just to shares.

education Updated: Jun 11, 2013 18:17 IST
MBA

Numbers-game-Knowledge-of-the-market-and-a-knack-for-marketing-is-important-for-a-stock-broker

The lowdown

Stock brokers are involved in buying and selling shares for clients for a commission. There are some big brokerage firms, however, who do not restrict themselves just to shares. They offer mutual funds, insurances, currencies and other financial products as well. Fresh graduates/postgraduates get jobs as assistant relationship managers (ARMs) and relationship managers (RMS). They are required to be in constant touch with the clients, inform them of market movements and advise them on the amount of risk they should take. Becoming a sub-broker or a franchise of a big brokerage company is an option. As a sub-broker, you will need to deposit a certain amount of money depending on the volumes you plan to handle. It is not easy to become a full-fledged broker, as the card which allows you to trade is quite expensive.

Clockwork
9am-10am: Check pink papers and business channels. Pre-market opening briefings with seniors
10am-3.30pm: Buy/sell shares and other securities when market opens. Call up clients or receive calls about orders
3.30pm-5pm: The market closes. Again call up clients to confirm orders on recorded lines. Visit clients to build relationships
5pm-6pm: Attend training sessions, which are organised to hire new people

The payoff
A relationship manger with an MBA in finance can draw Rs. 2.4 lakh to Rs. 4 lakh a year (depending on the firm). Non-finance RMs earn less. A good RM can rise to become a team leader, a zonal manger of a branch

Skills/TRAITS
* You should understand the pulse of the Sensex and the Nifty
* Trust and integrity, otherwise you can hurt the client’s prospects and the company’s reputation
* You deal with people’s life savings, so giving the right advice is critical

Getting there
Most brokerage firms hire ARMs and RMs from noted MBA institutes. In addition to your business degree, you could arm yourself with certificates such as the National Stock Exchange’s certification in financial markets and the Bombay Stock Exchange certification on derivatives exchange

Institutes and URLs
* BSE Training Institute, Mumbai www.bseindia.com
* National Stock Exchange, Mumbai www.nseindia.com
* Institute of Company Secretaries of India, New Delhi www.icsi.edu
* Institute of Chartered Accountants of India, New Delhi www.icai.org

Pros and cons
* The stock market is directly connected with economic growth, so higher GDP means higher salaries
* One mistake can cost clients heavy, so pressure is high
* The work can affect family life

There is a shortage of talent in the market. A career as a stock broker can be very promising because it is easy to get noticed if you do well -- Jayant Manglik, president - retail distribution, Religare Securities Ltd, Delhi