Stock Brokers facilitate the buying and selling of securities, such as stocks and bonds, on behalf of clients in financial markets. To become a Stock Broker, candidates are required to clear class 12 from a recognised board followed by the process required to get a license from SEBI and a membership in the NSE. Candidates can also opt for formal education to build a strong base in finance and management concepts.
The Salary of a Stock Broker can vary according to their skills and expertise. The average annual salary of a stockbroker in India is INR 2.2 LPA with the highest salary being INR 5.1 LPA. The estimated monthly earning of a stockbroker is between INR 15,313 to INR 16,907.
Read:
There are many courses that candidates aspiring to become Stock Brokers can pursue. BSc, BBA, MBA in Finance and BCom are some of the top courses. Candidates can also pursue short-term certificate courses to develop skills and gain knowledge.
Table of Contents
- How to Become a Stock Broker: Quick Facts
- Eligibility to Become a Stock Broker
- Qualifications to Become a Stock Broker
- Steps to Become a Stock Broker
- Courses to Become a Stock Broker
5.1 Entrance Exams
How to Become a Stock Broker: Quick Facts
| Eligibility | Class 12 |
| Qualifications | BBA/MBA in Finance |
| Starting Salary (INR) | 0.2 LPA |
| Average Salary (INR) | 2.2 LPA |
| Highest Salary (INR) | 15.1 LPA & above |
| Top Recruiters | Sharekhan, Angel One, Motilal Oswal, Ventura Securities |
Eligibility to Become a Stock Broker
There are certain eligibility criteria that candidates aspiring to become Stock Brokers must meet. The general eligibility criteria include
- Candidates must be citizens of India with a minimum age of 21 years.
- They should have a minimum prior experience of working as a partner/authorised assistant/authorised clerk/register/apprentice to an established Stock Broker.
- Candidates must be registered with SEBI as Stock Brokers to practice. They have to also meet the financial and fit and proper criteria set by SEBI.
- Candidates have to become a member of a recognised stock exchange in India.
Qualifications to Become a Stock Broker
The educational requirements to become a Stock Broker are as follows
- The minimum education required to become a Stock Broker is class 12 from a recognised board in India.
- Candidates can pursue bachelor’s and master’s courses in any discipline from a recognised university and there is no specific degree requirement.
- Candidates must have a certification in the Securities Market (Basic) module or Compliance Officers (Brokers) module or relevant modules required by the membership of the exchange.
Steps to Become a Stock Broker
Becoming a Stock Broker in India requires multiple steps. The general steps are mentioned in the following points.
- For registration as a Stock Broker, candidates have to fill out and submit Form A. The form can be downloaded from the SEBI official website or acquired from the SEBI branch.
- Candidates have to submit other documents mentioned in Form A while submitting the form.
- If the application is in order, the candidate will receive acknowledgement for their submitted application.
- The candidate will initially receive a temporary membership after the approval of documents from the board.
- Upon further processing, candidates will receive the SEBI certification.
- Candidates now have to submit a membership application to membership services in the NSE.
- The candidates will then be provided access to the trading system.
Courses to Become a Stock Broker
While a degree is not mandatory to become a Stock Broker, it can provide candidates with a strong base in financial/management principles and related aspects. The details for some of the popular courses are mentioned in the following table.
| Parameters | BSc Finance | BBA Finance | MBA Finance |
|---|---|---|---|
| Eligibility | Class 12 | Class 12 | Bachelor’s degree in finance or related field |
| Entrance Exams | NPAT, SET, CET, CUCET | SET, NPAT, CUET, IPU CAT | APICET, MAHCET, UPSEE, TSICET |
| Top Colleges | NMIMS, LPU, Parul University, Christ University | SJMSM, NMIMS, Amity University Mumbai, NAMS, TIMSR | IIM Kolkata, XLRI, NMIIMS, SPJIM |
| Course Fees | INR 2 - 3 L | INR 2 - 5 L | INR 3 - 20 L |
| Average Salary (INR) | INR 3 - 14 LPA | INR 4 - 5 LPA | INR 7 - 20 LPA |
| Top Recruiters | HDFC Bank, ICICI Lombard, Kotak Securities, KPMG India, PepsiCo | HDFC Life, ICICI Bank, NRHM, RBI, Oil India Ltd | Boston Consulting Group, Bain & Company, JP Morgan Chase & Co, McKinsey & Co, Barclays, KPMG |
Entrance Exams
Most colleges provide admission on the basis of merit but if candidates are targeting top colleges for management or related courses, they have to qualify for entrance exams. The details for some of the top exams are mentioned in the following table.
| Entrance Exams | Application Deadlines | Exam Dates | Result Declaration |
|---|---|---|---|
| IPU CET | February 1, 2024 – March 31, 2024 | April 27 – May 14, 2024 | June 2024 |
| NPAT | December 06, 2023 – May 20, 2024 | May 15 to May 31, 2024 | To be Announced |
| CUET | February 27, 2024 – March 26, 2024 | May 21 to May 31, 2023 | June 30, 2024 |
| XAT | To be Announced | January 7, 2024 | January 20, 2024 |
Top Colleges for Stock Brokers
Candidates can take admission in colleges offering courses related to finance, management or related disciplines. NMIMS, ICFAI, Woxsen University, Parul University and Alliance University are some of the best colleges for Stock Broker aspirants. The details for top colleges are mentioned in the table below.
| Name of the Colleges | Location | Average Fees (INR) |
|---|---|---|
| NMIMS | Mumbai | 3.25 L |
| ICFAI Foundation for Higher Studies | Hyderabad | 2.80 L |
| Woxsen University | Hyderabad | 4 L |
| Parul University | Vadodara | 80,000 |
| Alliance University | Bangalore | 9 L |
| Amity University | Noida | 3.51 L |
| Bharati Vidyapeeth University - IMED | Pune | 1.50 L |
| LPU | Jalandhar | 1.60 L |
| Shoolini University | Solan | 1.10 L |
| CMRU | Bangalore | 1 L |
Skills Required to Become a Stock Broker
Stock Brokers are required to have a specific set of skills to perform efficiently in the field. Some of the top skills that a Stock Broker should have are tabulated below.
| Financial Knowledge | Analytical Abilities | Communication skills |
| Sales and Negotiation | Problem-solving skills | Ethical Conduct |
| Risk Management | Technology Proficiency | Continuous Learning |
Benefits of Becoming a Stock Broker
Becoming a Stock Broker can offer several benefits. Some of the top advantages include
- Financial Rewards - Stock Brokers handle client investment portfolios and execute trades leading to potential financial earnings.
- Independence and Flexibility - Stock Brokers often have control over their working hours allowing for a better work-life balance.
- Learning Opportunities - Stock Brokers learn about various industries and investment strategies leading to personal growth and expanded knowledge base.
- Diverse Career Paths - With experience and additional qualifications, Stock Brokers can transition into different roles as the skills are transferable.
- Job Security - Stock Brokers will be in demand as long there are capital markets making it a stable job profession to pursue.
Salary of a Stock Broker
The average annual salary of a Stock Broker in India is INR 2.2 LPA with the highest salary being INR 5.1 LPA. The average starting salary of a Stock Broker is INR 0.2 LPA. The monthly earning of a Stock Broker is between INR 15,313 to INR 16,907.
The salaries for different related designations are mentioned in the following table.
| Designations | Average Annual Salary (INR) |
|---|---|
| Investment Advisor | 4 L |
| Portfolio Manager | 7 L |
| Wealth Manager | 6 L |
| Equity Analyst | 4.2 L |
| Derivatives Trader | 3.6 L |
| Financial Planner | 3.5 L |
| Mutual Fund Manager | 18 L |
How to Become a Stock Broker: FAQs
Ques. What are the educational requirements to become a Stock Broker in India?
Ans. The minimum education required to become a Stock Broker is class 12 from a recognised board. A bachelor’s degree in a related discipline can be helpful, especially for new Stock Brokers.
Ques. How do I register as a Stock Broker in India?
Ans. To register as a Stock Broker, candidates have to submit an application along with the required documents to SEBI. After the evaluation of documents, candidates will be granted the license to practice.
Ques. Can I start my own stock broking firm?
Ans. Starting an own stock broking firm involves additional requirements and obtaining a membership with stock exchanges.
Ques. What skills are required to become a successful Stock Broker?
Ans. Financial knowledge, analytical abilities, sales and negotiation and ethical conduct are some of the top skills that every Stock Broker should have.
Ques. How can I gain practical experience as a stockbroker?
Ans. Candidates can join a stock broking firm as an employee or an intern. This will provide them with hands-on exposure to various aspects of stock broking and related aspects.
Ques. Are there any financial requirements to become a Stock Broker in India?
Ans. SEBI has set specific financial requirements like minimum net worth, capital adequacy and security deposit for candidates looking to become Stock Brokers in India.
Ques. Is it necessary to become a member of stock exchanges in India?
Ans. To operate as a Stock Broker, candidates are required to become a member of a recognised stock exchange in India. Each exchange may have its own membership requirements.
Ques. Which cities are paying the most to Stock Brokers in India?
Ans. Bangalore, Mumbai, New Delhi, Indore and Ahmedabad are the top-paying cities for Stock Brokers in India.
Ques. Which industries are paying the most to Stock Brokers in India?
Ans. Financial Services, FinTech, Investment Banking, Internet and Insurance are the top-paying industries for Stock Brokers in India.
Ques. Name the top recruiters of Stock Brokers in India.
Ans. Sharekhan, Angel One, Motilal Oswal, and Ventura Securities are top recruiters of Stock Brokers in India.
![Dr. N.G.P. Arts and Science College - [DrNGPASC]](https://images.collegedunia.com/public/college_data/images/appImage/1181_DNGPAASC_APP.jpg?h=150&w=320&mode=stretch)
![Dr. N.G.P. Arts and Science College - [DrNGPASC]](https://images.collegedunia.com/public/college_data/images/logos/1587711168drngpasc.png?h=30&w=30&mode=stretch)
![NITTE School of Management - [NSOM]](https://images.collegedunia.com/public/college_data/images/appImage/1705486607image.png?h=150&w=320&mode=stretch)
![NITTE School of Management - [NSOM]](https://images.collegedunia.com/public/college_data/images/logos/1704798757unnamed.jpeg?h=30&w=30&mode=stretch)
![Karamveer Bhauro Patil College - [KBP College]](https://images.collegedunia.com/public/college_data/images/appImage/57509_Picture1.jpg?h=150&w=320&mode=stretch)
![Karamveer Bhauro Patil College - [KBP College]](https://images.collegedunia.com/public/college_data/images/logos/1685101111Screenshotfrom20230526170814.png?h=30&w=30&mode=stretch)
Comments