What training do stockbrokers need

Broker

What is a broker?

The profession of a broker is characterized by the fact that he trades in securities and values ​​such as bonds, foreign exchange, stocks, raw materials, sorts or other things. The trade pursues the goal of achieving the highest possible profit margin through targeted purchases and sales. A prerequisite for successful activity as a broker is to keep a close eye on price and exchange rate fluctuations as well as interest rates on the stock exchange and, if necessary, to act quickly. There are both brokers who work privately and brokers who work on behalf of companies, private individuals or financial and credit institutions. A good broker is characterized by lightning-fast comprehension and appropriate action. He must always be “up to date” and be able to act quickly. His actions must be based on a great sense of responsibility, because he is dealing with other people's finances. It goes without saying that a broker must be able to withstand great stress in order to be able to cope with the constant ups and downs on the stock market and all the consequences that go with it.

In order to be successful as a broker, it is essential to always analyze the current market, to specifically anticipate or anticipate events and to act accordingly. On the one hand, this means analyzing topics, industries and individual companies, but also preparing reports and developing trading strategies for customers. Brokers pass on recommendations to their customers and also exercise an advisory function. Ultimately, brokers are the ones who “stand on the front lines” and intervene directly in what is happening on the stock exchange. A high degree of concentration and willingness to act is required for their work, otherwise they cannot survive on the fast-moving stock market.

The broker acts on his own authority, but is bound by a certain budget, contractual limits and framework conditions by his client and must act accordingly. Most brokers work directly on the exchange or are in contact with them by telephone. In the course of the spread of the Internet, it has also become established to conduct stock market transactions online.

Training as a broker

A broker needs at least a commercial education or a solid further education in banking and finance. It is also feasible to acquire the necessary qualifications by studying banking and financial services. It is essential for a broker to obtain approval under current stock exchange law. Only then can he really act as a broker.

Professional qualifications are only one side of the coin. A good broker also needs certain personal qualities. He must be stress-resistant, have a great sense of responsibility, since the finances with which he deals are foreign. Reliability and a very well developed sense of duty are also necessary building blocks. The stock market demands quick action, but this must not lead to short-circuit reactions. Rather, it is a matter of acting quickly, but keeping a sense of proportion for possible risks.

Thus, the broker performs a very responsible job on which the finances of his customers depend. He must be both professionally and personally experienced in order to be able to carry out this activity. For this reason, most brokers only work a certain amount of time in the stock market, after which they can devote themselves to a "quieter" activity.

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