What is a Stock Broker?

A stock broker is a qualified and regulated professional who buys and sells shares (stocks, equities) and other securities through market makers on behalf of private investors and traders.

In the UK brokers are required to be SII qualified, this qualification is achieved by passing two exams (Unit 1 Financial regulations & Unit 2 Securities), they must also be FSA registered.

Stockbrokers provide the link between those wishing to invest in the stock market and those companies and other organisations offering investment opportunities. Brokers help their clients maximise the profits from those investments.

On behalf of their clients, stockbrokers trade in a range of investments, including stocks and shares, bonds, gilts (government bonds), commodities (such as food stuffs or metals) and short-term securities such as Treasury bills.

There are three types of stock broking service.

1. Execution-only, which means that the broker will only carry out the client’s instructions to buy or sell.
2. Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.
3. Discretionary dealing, where the stockbroker ascertains the client’s investment objectives and then makes all dealing decisions on the client’s behalf.

If I work in Stock Broking what will I be doing?

In some cases, you have prior authority to buy and sell investments without having to consult your client on every occasion (Discretionary Broking). Alternatively, you may present your client with a range of options and provide advice on the relative advantages and disadvantages (Advisory Broking). In other cases, you will act purely on the client’s instructions and do not provide advice (Execution only Broking).

You will have to study and keep up-to-date with general business trends, the financial affairs of individual companies and the overall state of the financial markets. You will usually base your advice on information from the financial press, computerised information databases and from the opinions and forecasts of investment analysts. You will use on-line systems to gain access to the latest share prices and other essential financial information. You will negotiations for the sale and purchase of investments with market makers by telephone.

You may manage portfolios of investments for your clients. You will regularly review your clients portfolios to check results and recommend changes as appropriate.

In larger firms, you may specialise in a particular sector of the market, for example in engineering and technology, finance or retail. Alternatively, you may develop a specific expertise in a particular geographical market, such as Europe, the USA or the Far East.

Typically, a stockbroker’s working day is from 7:00am – 5:00pm Monday to Friday, but many work longer hours and at weekends.

How do I get a graduate scheme / internship / entry level job or career in Stock Broking?

Obtaining a graduate scheme, internship or entry level role in stock broking can be very challenging and competitive – though very achievable by getting your application, CV, interview and general approach right. You can guarantee that ninety percent of applicants for stock broking roles will not know how to apply, so getting your application in the top ten percent makes things a lot more achievable.

Approaching the company in the right way will make all the difference. Combining the right approach with a strong interview (and in some cases assessment centre) writ a strong focused tailored CV will go a long way. Make sure you have gone through the free videos on this sight by entering your name and email address in the top right of this screen underneath the video. Once you have filled this in you will have instant access to everything you need to secure your career in stock broking.

Back to Sales & Trading

If you would like to add comments to this description, give any feedback or ask any questions about careers in banking & finance in this area please comment below