How To Become A Stockbroker In Australia: A Complete Guide

Students want to know how they can become a stockbroker without a degree.

 

Do you dream of becoming a stock broker? If your answer is yes, you may want to know how to become a stock broker in Australia. A stock broker is one who sells and buys financial products, such as shares and stocks. But there is a way of becoming a stock broker.


The stock broker should know how to manage the stocks, shares, and financial assets. Therefore, you need to have a good understanding of the stock market, investment, and other similar things. More than that, it is not mandatory to have a specific qualification to become a stock broker, but a degree may help you to find better opportunities.


So, let's find out everything about becoming a stock broker, what they do, their jobs and responsibilities, and more. Keep reading to find every detail.

 

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1. What Does A Stock Broker Do?


A stock broker is often referred to as 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 they 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 be providing advice to corporations and individuals related to investment practices and assist them in making informed decisions regarding investments.

 


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. Now, a stock broker's client can be an institution, company, and even an individual.


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

 

  • A stock broker is expected to have in-depth knowledge of shares, stocks, and different types of investment services. They must also know how to trade them.

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

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

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

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

  • Must follow world news as well as events that can have some contribution over 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 will be expected to conduct 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 be asked to explain the report as well.

  • A stock broker 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. Typically, a bachelor's degree is the minimum requirement to start working as a stock broker.

 

Although to become a stock broker, a degree might not be required. However, if you want to work with stock broker firms, they will mostly ask for a degree.


So, if you wonder how to become a stock broker without a degree, then the answer is to find a firm that will let you work as a stock broker even without a degree. But aim for a degree to avoid any trouble in becoming a stock broker in Australia.


Do an under-graduation course in economics, mathematics, finance, accounting, or a similar subject. These are the subjects that stock brokers usually go for. Moreover, these subjects will help you understand the financial industry better. If you want to enhance your stock market knowledge, you can go for stock broker courses offered by TAFE. TAFE is an excellent destination to find 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 stock broker properly.


If you are a graduate already and now want to make a career shift, you should try some stock broker courses. The crux is to prepare yourself so that you can become a stock broker without any hurdle.


After completing graduation, you can do a master's degree in finance as well. 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 are done with your education, 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 will be associated with top financial firms. They will be provided with comprehensive training that will include product and sales training.

 

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

 


Discount Brokers


Typically, those who don't make it to full-service brokerage firms usually go for discount brokers. Discount brokers are those who aren't an expert at sales but want to learn how to manage investments. The firms that hire discount brokers are paid 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, the recommended thing to do is 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!


Whether you become a stock broker with or without a degree, if you don't have adequate knowledge about the stock market, you have minimal chances of becoming a stock broker. You must study as much as possible and stay abreast with everything related to stocks.

 

You can read books related to 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 major 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 math skills you have, the better your chances of becoming a broker. Maths is an inevitable requirement for a stock broker.

 


Be Detailed


A stock broker must be detailed about every information that they work on. If you know a stock broker, you will notice that they are incredibly detail-oriented. This skill is required because if you don't get into detail, you will fail to provide your client with the right advice to buy and sell stocks.

 


Get A Degree


We have already shared what kind of education qualification you will need to become a stock broker, but we want to refresh this part again. Yes, it's not mandatory to have a degree but to work as a stock broker 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 stock broker, but when it comes to growing, it's additional certifications, higher degrees, experience, and enhanced skills that 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 find out more about stock broking.


If you want to grow in this domain, you need to keep working on your skills and prove to yourself 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 think about what kind of firm will be suitable for 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 to 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 stock broker in Australia is $78,261. Someone with more than eight years of experience earns $179,270. Stock brokers usually earn an average salary of $78,261 with 1-3 years of working experience.


The salary of a stock broker will depend on multiple factors, such as the work experience of the professional, where they are working as a stock broker, the type of stock broker 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 big 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. Make sure to work on your resume and add all the details about your education qualification, 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 at what you do.

 

Work on building your personal clientele base and expand your skills and knowledge base.


We hope this post will help you augment your stock broker career. Good luck!

 

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