Working in the Stock Market: What a Person Needs to Be a Broker
Skills Needed to Get a Job in the Stock Market
The stock exchange market is vibrant and profitable. More and more people are attracted to it. First of all, the freedom of freelancing attracts them. What can be better than having rest in India or any other country, open a laptop to make a couple of transactions, and make a profit? The picture looks perfect. However, is everything as easy as it seems? Is everyone able to work in the stock market? Let us figure this out.
Jobs in the Stock Market
First of all, it is essential to understand that working in the stock market does not imply only freelancing. There are different positions from a trader to a market analyst. Besides, some companies are looking for in-house employees. After all, broker companies require personnel to support the platforms and ensure their functionality.
The most common jobs related to Forex trading are broker and trader. Let us consider them and define the main differences between these two positions.
A broker is an employee of a brokerage company who concludes purchase and sale transactions in the financial market on behalf of a trader. A broker does not use one’s own capital for trading but performs intermediary functions and earns from commissions and rewards from the operations performed.
Most often, a trader is an individual who uses one’s own capital for trading and earns from the difference in prices when buying and selling assets. Therefore, a trader is not really a profession, but an occupation that can be done in your free time.
Since individuals (traders) do not have access to trading and cannot make transactions themselves, they need an intermediary to trade, i.e., a broker like Forextime that has a brokerage licence and works according to the legislation in force. And a broker, in turn, provides access to transactions to an extended circle of traders. Today, this is effected through online services where any individual can register and start trading. Besides, leading companies provide a mobile trading app for the convenience of their clients.
Brokerage services are interested in many traders since brokers receive a commission on transactions. Therefore, in addition to access to the financial market, a broker provides traders with useful information, i.e., analytics and market news, conducts training seminars, submits tax returns for traders, and provides recommendations.
More About Brokers’ Activity
Brokers act as intermediaries on the exchange. Their main functions are:
- Monitoring of the market situation;
- Performing trading or other financial transactions on the market on behalf of the client;
- Using the client’s financial resources to generate a profit and for the benefit of the client;
- Analysing conducted transactions;
- Preparing reports on transactions;
- Consulting and training traders and clients.
What Competencies Does a Broker Need in Work?
The stock market attracts a lot of people of different ages, education, and background. Working in this market, for a certain category of people, is in many ways similar to gambling. It is also unpredictable and can immediately enrich or cause losses.
For those who try themselves in brokerage or trading activities, it is necessary to assess the risks because newbies are often prone to make mistakes.
To become a broker or trader, you need the following set of skills:
- systematic thinking,
- analytical mindset,
- strategic planning,
- ability to analyse large amounts of information,
- readiness to permanently study,
- ability to work under pressure,
- attention to detail,
- stress resistance,
- communication skills,
- ability to take risks.
To work in the stock market, a person should possess particular skills. However, the most crucial is the readiness to work persistently, learn a lot, and the ability to analyse a lot of information, especially at the initial stages. Besides, working in the stock market, you will need to be always informed about significant and insignificant changes in the world’s economy and policy. Only in this way, you will be able to succeed. So, every newbie should think carefully if so easy and relaxing job in the stock market is suitable for them.