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Stockbroker
Stockbrokers buy and sell stocks and shares on behalf of clients looking for the best return on their investments. They often also offer financial advice. Their clients can be large institutions or individual investors.
Also known as:
- Private client stockbroker
Work activities
Stockbroking is a collective term that covers several types of career including market makers, traders and analysts. Private client stockbrokers buy and sell things like stocks and shares and government bonds (collectively known as securities) on behalf of clients, and/or offer them financial advice. They might recommend to clients the best time to buy or sell securities, based on their continual monitoring of the financial markets. Online stockbrokers have access to the latest share prices and other essential financial information. Negotiations for the sale and purchase of securities are carried out by telephone or by computer.
In their advisory capacity, stockbrokers help clients ranging from individual investors to large institutions. They must first build up a clear understanding of each client’s investment objectives. Individual clients might want to make investments to provide finance for things like housing, pensions, education, insurance or luxuries. Factors that stockbrokers take into account include existing income/assets, the length of time the client wants to invest for, how much risk they are prepared to take, their preferences and suitability. In addition, they advise on investment and unit trusts, pension schemes and other financial services, and they manage portfolios (collections) of securities for clients. This involves the regular review of portfolios to check results and recommend changes as appropriate. Stockbrokers must make sure that their clients’ records are kept up to date at all times. Large companies might seek the advice of a stockbroker on the type of securities they should issue and the best time to try to raise money, by using a corporate finance section of a broker or investment bank. Stockbrokers base their advice on up-to-date information from many sources including the opinions and forecasts of investment analysts.
Personal qualities and skills
As a stockbroker, you’ll need to be:
- Interested in helping individuals and businesses to achieve their financial goals.
- Able to give presentations.
- Able to cope with pressure and to take responsibility for your decisions.
- Interested in business and economics.
- Able to pay attention to detail.
- Prepared to keep up to date with financial news.
- Able to keep accurate records of transactions.
You should have:
- Good verbal and written communication skills.
- Listening skills.
- Teamwork and interpersonal skills.
- Confidence with figures. You will need to be able to analyse and interpret information.
- Negotiating skills.
- The capacity for quick, clear thought.
- IT skills.
Pay and opportunities
Stockbrokers start on around £24,000 per year, with pay rising as high as £125,000 if you are successful. Salaries might be increased further by performance-related pay and bonuses.
You can expect to work very long hours with a high financial reward. Working patterns are Monday to Friday, but some work evenings and weekends.
Employers are the 400-plus member firms of the London Stock Exchange. Many are large banking and finance houses offering a range of financial services such as banking, market making and investment advice. Most opportunities are in London, with openings also in Birmingham, Edinburgh, Glasgow, Manchester, the Channel Islands and smaller regional offices.
Where are vacancies advertised?
Vacancies are advertised in national newspapers, on financial job boards and on employers’ websites.
Entry routes and training
Most stockbrokers are graduates or people who have worked their way up from other stock market positions. Holders of a degree in business, finance or economics might have an advantage. Some entrants have a postgraduate qualification.
A level 6 (degree) apprenticeship as a financial services professional could also lead to a career as a stockbroker.
New entrants receive on-the-job training and must pass an exam that is recognised by the Financial Conduct Authority (FCA), to become a registered stockbroker. Larger firms might offer graduate training schemes. The FCA divides clients into “wholesale” – the bigger institutions and corporates – and “retail” – private individuals, and small businesses and organisations, where the level of protection for client assets is higher. For the wholesale sector, examples of recognised exams include the Investment Management Certificate from the CFA Society of the UK. A full list is published on the Financial Skills Partnership website (on the recommended examination list). For career progression, there is an option of taking further study for relevant professional exams, such as the Chartered Institute for Securities & Investment (CISI) master’s in wealth management.
The retail financial sector has undergone considerable regulatory change following the Retail Distribution Review (RDR). The RDR has redefined and raised the level of compulsory qualifications for professionals operating in the retail financial sector (dealing and/or advising in investment products, securities and derivatives).
Stockbrokers can progress by handling larger accounts and by moving to larger organisations. Promotion to senior, manager and director posts is possible.
Rehabilitation of Offenders Act: Working as a dealer in securities is an exception to the Rehabilitation of Offenders Act 1974. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to.
Qualifications
For entry to a degree course, the usual minimum requirement is:
- Two to three A-levels
- GCSEs at grades 9-4 in two to three other subjects. You are likely to need GCSEs in English and maths at grades 9-4.
- A-level maths might be required for some degrees such as economics.
Alternatives to A-levels include:
- Edexcel (BTEC) level 3 National qualifications
- International Baccalaureate (IB) diploma.
To get onto a degree apprenticeship, you will usually need at least two A-levels.
Whatever qualifications you hold, personality and an aptitude for the job are just as important. Some employers might offer a summer internship for students and graduates, although this does not guarantee a job offer.
Adult opportunities
Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.
Knowledge of the securities industry is important. Some applicants have developed relevant skills by working in accountancy, economics, banking or insurance.
If you don’t have the qualifications needed to enter your chosen degree course, a college or university Access course (for example, Access to Business) could be the way in. No qualifications are usually needed, but you should check this with individual colleges.
Relevant professional qualifications are available by distance learning from the Chartered Institute for Securities & Investment (CISI) and the CFA Society of the UK.
