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Job description:Trainee Stockbroker
Timing and good decision making is something you'll need as a Trainee Stockbroker, making sound investments on behalf of your clients on a daily basis.
You'll have to find new business for your organisation and open new client accounts. You'll also be marketing services through mailings, events and gradually begin to handle each one by yourself.
A fast paced role, you'll have to research daily into the financial market to keep your knowledge fresh. You'd also be undertaking many of the day to day tasks to help run the business, which will usually be delegated to you by more experienced Stockbrokers. This could include phone calls, letters and paper work, research, attending meetings, general account handling and other duties.
As a Trainee Stockbroker you can work for individuals or companies large and small. You'd be working as part of a team alongside investment analysts, who carry out research into how companies are doing.
Hours/Environment
Long hours can be expected, Monday to Friday. The London Stock Exchange opens at 8am, so you would normally be at your desk by 7am, and stay until the trading desk closes (often around 6pm). If you work with commodities or Far East markets, your hours may be longer and more irregular.
You would usually work in a large, open-plan office, and spend most of your time at the computer and on the telephone. It can be a noisy and pressurised environment.
Skills and interests
To be a good Trainee Stockbroker, you must have:
- the ability to understand and analyse complex information
- good communication skills
- good mathematical and IT skills
- confidence and decision-making ability
- calmness under pressure
- the ability to work both as part of a team and on your own initiative
- drive and determination
- attention to detail
- good judgement of risks
- honest and a trustworthy attitude
Language skills, especially German, Japanese, French and Russian can be an advantage if you want to work with overseas clients and markets.
Entry
There are no set qualifications if you want to become a Stockbroker, although most employers will expect you to have a degree (normally class 2:1 or above). Your degree could be in any subject, but economics, business, finance or accountancy may give you the edge. Please check with colleges or universities for degree entry requirements.
If your degree is not in a business-related subject, you must be able to show employers that you understand how financial markets work. It may be helpful if you find a work experience placement in an investment bank or similar company.
Early on, you will begin as a graduate trainee in an investment bank or a firm of stockbrokers. Many companies have tough recruitment processes, with several tests and interviews.
It is becoming more common for employers to ask for postgraduate qualifications such as an MSc or MBA.
You could also become a trainee stockbroker after gaining experience as an investments administrator or investment analyst.
Training
To become a Stockbroker, you must be registered as an 'authorised person' with the Financial Services Authority (FSA). To become registered, you must pass an appropriate exam approved by the FSA. See the Financial Services Skills Council website for a full list of appropriate exams.
You will develop your skills on the job, and will also study for an FSA-approved qualification from either the Securities and Investments Institute (SII) or the CFA Society of the UK. You could take either of the following qualifications:
- SII Certificates in Investment Management, Securities or Financial Derivatives
- CFA Society Investment Management Certificate (IMC).
With more experience (usually around three years'), you could take more advanced professional qualifications, such as:
- SII Diploma, or
- Chartered Financial Analyst (CFA) qualification.
You should also have continuous training throughout your career, to keep up to date with new procedures and regulations.
See the SII and the CFA Society of the UK websites for full details about their qualifications.
Experienced financial advisers can also give investment advice and manage clients' portfolios if they have had relevant training, such as the Diploma in Financial Planning. See the Financial Adviser profile for more details.
Opportunities
You could work for stockbroking firms, investment banks or private banks. Most jobs are based in London, but there are opportunities in other major cities in the UK and in overseas financial centres.
With experience and a good track record, you will progress to become a full Stockbroker. From here you can build you career towards an account or fund manager position. Or, if you wish, you could set up your own stockbroking firm and work for yourself
Annual income
Once you get started you should be looking at a salary from £24,000 to £35,000 a year. Once an experienced Stockbroker, this can rise to anything from £45,000 to £80,000 a year - with some Stockbrokers earning over £150,000 a year.
There can also be large bonuses based on personal or company performance.
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