How To Become A Stockbroker In Australia: A Complete Guide

Do you dream of becoming a stock broker? If you answer yes, you may want to know how to become a stockbroker in Australia.

A stockbroker sells and buys financial products, such as shares and stocks. But there is a way of becoming a stock broker.

To become a stockbroker, you must understand the stock market, investments, and other finance topics. More than that, having a degree to become a stockbroker is optional. However, a degree will help you to find better opportunities.

So, let's find out everything about becoming a stock broker, what they do, their jobs and responsibilities, qualifications, courses, and more. Keep on reading!

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1. What Does A Stock Broker Do?

A stock broker is also called a broker-dealer. This professional sells and buys stocks for institutional and retail clients through over-the-counter and stock exchange. And for providing this service, they are either paid a commission or a fee.

A stock broker is well-versed in the stock exchange market and can advise people when to buy and sell their stocks to earn maximum profit.

Apart from selling and buying stocks, shares, etc., they can also work as a financial adviser. As a financial adviser, you will advise corporations and individuals about investment practices and assist them in making informed investment decisions.

2. Responsibilities of A Stock Broker

By now, you briefly know what a stock broker does. This section will help you understand their responsibilities thoroughly. A stock broker will usually make trades for someone, particularly on behalf of their clients. A stock broker's client can be an institution, a company, and even an individual.

When it comes to the responsibilities and duties of a stockbroker, there are many things that the specialist will have to take care of. Take a look at some of the essential duties of a stock broker below:

• A stockbroker must have in-depth knowledge of shares, stocks, and investment services. They must also know how to trade them.

• A stock broker should always stay up-to-date regarding legislation on taxation and finance.

• The specialist should monitor the stock market's performance and understand the changes.

• If there are any risks, the stockbroker will have to analyse the risks and guide the client accordingly.

• The stock trader should be a good listener, listen to the client's requirements in detail, and provide tailored services.

• Must follow world news and events that can contribute to the prices.

• Alert clients and advise them about the right time to sell and buy stocks to increase the client's chances of making maximum profits.

• The stock broker conducts financial trades on behalf of their clients.

• The specialist must manage the client's financial portfolio and analyse it properly to see growth opportunities.

• The professional will have to prepare reports and analyses of the investment portfolios. They may have to explain the information as well.

• A stockbroker must know the market and find new clients.

3. Education Requirement To Become a Stock Broker In Australia

If you want to become a skilled stock broker, you must be good at analytical and mathematical skills. You must also have a thorough understanding of the financial market and tools. A bachelor's degree is the minimum requirement to start working as a stock broker. 

A degree is optional to become a stockbroker. However, if you want to work with stock broker firms, they will mostly ask for a degree.

If you want to know how to become a stockbroker without a degree, the answer is to find a firm that will let you work as a stockbroker even without a degree. But aim for a degree to avoid trouble becoming a stockbroker in Australia.

Do an under-graduation course in economics, mathematics, finance, accounting, or a similar subject. These are the subjects that stock brokers usually study. Moreover, these subjects will help you understand the financial industry better.

If you want to enhance your stock market knowledge, you can take stock broker courses TAFE offers. TAFE is an excellent destination for finding relevant courses.

Apart from courses offered by TAFE, you can also apply for stock broking certification courses. Diploma courses are usually short and can help you understand the role of a stockbroker properly.

If you are a graduate and want to make a career shift, try some stock broker courses. The crux is to prepare yourself to become a stockbroker without any hurdles.

After graduation, you can also do a master's degree in finance. This will help you showcase your expertise and skills better. Moreover, the more degrees you have related to finance, the more your clients will trust you.

Do visit the website of the stock brokers association of Australia to find an accredited course that will skyrocket your stock broker career.

Once you have done this, the next thing that you need to do is apply for a stock broker license. Ensure that you meet ASIC (Australian Securities and InvestmentsCommission) stock broker training requirements. 

4. Types of Stock Brokers

Full-Service Broker

A full-service broker is associated with top financial firms. They provide comprehensive training that will include product and sales training. 

You also receive education on compliance regulations and procedures. A full-time broker will also receive business cards, office space, and a guaranteed salary. They also get bonuses if they meet their sales quota.

Discount Brokers

Those who don't make it to full-service brokerage firms go for discount brokers. Discount brokers aren't experts at sales but want to learn how to manage investments. The firms that hire discount brokers pay a flat salary. 

The best thing about discount brokers is that while working, they build up a portfolio with a good clientele base that helps them to move to a full-service.

Bank Brokers

Then you have bank brokers. Bank brokers are paid as discount brokers but are more like full-service brokers. Banks look for brokers with previous experience. 

Therefore, if you want to work as a bank broker, you must become a discount broker first. Bank brokers may have to work with a conservative clientele base, and the work culture is almost free of high sales pressure and sales quotas.

5. Your Career Path To Becoming A Stock Broker 

Read, Read, Read!

You have minimal chances of becoming a stockbroker if you don't have adequate knowledge about the stock market. You must study as much as possible and stay abreast with everything related to stocks. 

You can read books on the stock market, keep yourself up to date by following daily stock-related news, etc. Find out what a stock broker does in more depth, even though we have highlighted the significant responsibilities of a stock broker.

Excellent Math Skills

A leading stock market will tell you how prudent mathematics skills are to become a stock broker. Even if you are good at maths, hone your skills further. The better your math skills, the better your chances of becoming a broker. Maths is an inevitable requirement for a stockbroker.

Be Detailed

A stockbroker must be detail oriented on every piece of information. If you know a stock broker, you will notice that they are incredibly detail-oriented. They will fail to provide their clients with the right advice if they miss crucial stock information.

Get A Degree

We have already shared what kind of education qualification you need to become a stockbroker. Still, we want to refresh this part again. Yes, it's not mandatory to have a degree but to work as a stockbroker in a leading firm, you need to have a degree in finance. 

Therefore, complete your graduation. Also, ensure that you get good grades.

Keep Working on Yourself

If you want to stay one step ahead of other stock brokers, you must work on yourself and always be ready to improve your skills. A degree will help you become a stockbroker. Still, when it comes to growing, additional certifications, higher degrees, experience, and enhanced skills will support you.

So, don't stop there. Attend seminars and conferences and visit the stock brokers association of Australia because they conduct workshops and conferences for stock brokers. Conferences and seminars will allow you to network with like-minded people and learn more about stock broking.

If you want to grow in this domain, you need to keep working on your skills and prove that you are the best in the stock broking domain.

Think About The Firm

There are big, medium, and small firms to work as stock brokers to gain experience. So, you need to consider what kind of firm will suit you. For example, do you want to join a big firm and get paid well along with a competitive training package? Or do you want to work in an environment where there won't be many people?

If you choose the latter, go to a small firm. A small firm's package will be less, but the company will provide you with better training. While a big company will offer you a lucrative training package, you will have to work with many, which means you may miss out on a few critical things.

You Have To Be Sales Oriented

The key to becoming a successful sales broker is to be sales oriented. You must know how to impress prospective visitors and convert them into clients. And once they become your clients, you should also know how to keep them with you so that they keep availing of your stock-broking services.

6. Salary of A Stock Broker

On average, the expected salary of a stockbroker in Australia is $78,261. Someone with more than eight years of experience earns $179,270. Stock brokers usually make an average salary of $78,261 with 1-3 years of working experience.

The stockbroker's salary depends on multiple factors, such as the professional's work experience, where they work as a stockbroker, the type of stockbroker they are, whether they are graduates or not, and so on.

If you want to get paid well and grow, aim for a graduation degree, get your license, and apply to large stock market companies.

7. How To Apply For Stock Broker Positions in Australia?

First, complete your education in finance. And if you have done graduation in another course, do some certification course related to finance or stocks. Some institutions provide short-term courses that will help you understand stocks.

Then, apply for licensure and start applying for stock broker positions. Ensure to work on your resume and add education qualifications, certifications (if any), and years of experience.

Leverage the power of the internet and search for open positions related to stock brokers in Australia and start applying. Alternatively, you can get in touch with recruitment agencies as well. They have good networks and can help you find relevant opportunities.

8. Wrapping Up

Now you know everything about the stock broker career. After becoming a stock broker, continue pursuing additional certifications related to your field. This will help you to grow. Keep gaining work experience, hone your skills, and be confident. 

Work on building your clientele base and expanding your skills and knowledge base.

This blog gave an overview of how you become a stockbroker in Australia. Now it's your turn to make your dream come true. 

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