Broker Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a broker. Feel free to use our broker job description template to produce your own. We also provide you with information about the salary you can earn as a broker.
Who is a Broker?
A broker is someone who buys and sells things on behalf of others in general. They act as a link between two parties. A broker is an individual or a corporation that executes ‘buy’ and ‘sell’ orders for an investor for a fee or commission in stock market parlance.
Some brokers offer extra services such as research, intelligence, investment strategies, margin finance, and other value-added services in addition to executing client orders.
Previously, only the wealthiest investors could afford brokers, allowing them to participate in the stock market. However, since the introduction of online booking, there has been a surge in cheap broking firms, and things have begun to shift. More investors have been able to adopt the direct equity route for stock investment because they may now trade at cheaper costs.
Brokers make money by charging their clients a charge or commission for each order they place. Many traders are now executed using electronic systems without the need for human participation, unlike in the past. Several investors still choose to use a human stockbroker because of the expert information it provides.
Brokers have the most in-depth knowledge of their markets, and they are experts not just in trading but also in market behaviour. They know who to speak with, what to do, and, most importantly, how to do it well.
Types of Broker
There are four main types of brokers – stockbroker, forex broker, full-service broker, and discount broker. While they all serve as a conduit between you and another party, they operate in different ways. Some brokers are ‘execution-only’ brokers, while others execute, offer advice, and manage your portfolio.
A stockbroker: Also known as an investment broker – Manages and executes the purchase and sale of stock. You’d need a stockbroker because private investors can’t buy shares directly from the stock market. The broker will buy and sell the stocks that you want to invest in on your behalf.
A forex broker: Also known as a retail forex broker, On your behalf, it buys and sells currencies. Having a forex broker gives you access to the market 24 hours a day, seven days a week, and the chance to speculate on currency pairs all over the world. While forex brokers strive to keep their expenses as low as possible to remain competitive in the market, you will still be charged certain fees while trading with them, including a spread. In the forex market, transactions are made in pairs, so you’d either purchase or sell the pair you’d like to trade.
Full-service brokers: Full-service brokers and financial advisers provide a variety of services, including retirement and investment planning, tax counseling, and market research. This type of broker could be handy for someone who doesn’t have time to undertake their financial planning. Full-service brokers typically charge a greater fee than other types of brokers. The quantity of services offered by full-service brokers differs from those offered by other brokers.
Discount broker: A discount broker charges a lesser commission because they don’t provide any advice or value-adds to your trade, such as research and planning; instead, they simply execute it. Typically, the lesser the fee, the more trades they execute for you. You would have to handle your portfolio yourself if you pick this type of broker.
Broker Job Description
Below are the broker job description examples you can use to develop your resume or write a broker job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a broker include the following:
- Arrange and negotiate trades between buyers and sellers, including notifying clients of recent prices and possible opportunities in several markets
- Relate with clients on explanations to questions about their accounts or give updates on security prices
- Establish and strengthen connections with institutional investors and stockbrokers who represent them
- Explore investment openings and provide information to clients on how to manage their portfolios
- Deliver trading recommendations to clients about when to buy or sell certain stocks or bonds
- Notify clients on which securities to acquire based on the client’s financial goals, such as saving for retirement or opening a business
- Mediate with other brokers to acquire or sell large blocks of securities at favorable prices
- Suggest new stocks or bonds to enhance a portfolio based on current market climates
- Provide universal financial planning recommendations to clients, such as prepping an investment portfolio or applying for a loan from a bank
- Execute deals in the financial markets on behalf of the customer.
- Provide information on other market participants.
- Develop a technical foundation for trading on the exchange.
- Attend and schedule meetings with clients.
- Discuss clients’ existing and prospective insurance needs.
- Negotiate insurance coverage with the insurance provider for clients.
- Collect insurance premiums.
- Maintain meticulous electronic records.
- Coordinate consumer communication and information flow with the insurance and reinsurance markets.
- Provide clients with a variety of solutions.
Qualifications
The qualifications required to become a certified broker include the following requirements:
- A university degree, preferably in marketing, business administration, or a similar field, from a renowned university.
- 1-3 years of experience in the insurance and reinsurance industry or as an insurance and reinsurance broker is required.
- Familiarity with reinsurance restrictions in local and worldwide markets.
- Written and spoken English fluency is required.
- Strong communication and analytical abilities.
- Excellent MS Office application knowledge as well as adaptability to new software.
- Professional who is hardworking, accurate, and results-oriented.
- Ability to comprehend the needs and expectations of clients.
- Negotiation, presentation, and communication skills are highly demanded.
- A character that is self-motivated, upbeat, and exceedingly goal-oriented.
- A personality that is confident, professional, and engaging.
- Strong ambition to succeed in sales, earn good money and advance in your job.
- A willingness to listen and learn rapidly, as well as the skill to do so.
- Excellent interpersonal and negotiating abilities, as well as a keen eye for detail.
Essential Skills
Aside from educational qualifications, they are other abilities you need to possess in other to thrive in this profession:
- Problem-solving: In our daily lives, problem-solving is a daily occurrence. We all have challenges that need to be resolved. How good are you at figuring out how to solve these issues?
Every day as a broker, you’ll be expected to come up with innovative solutions to challenges. You will be expected to carefully examine events, think rapidly about them, and come up with appropriate answers in a short period. How good you become at your career, as well as your level of success among other professionals and peers, will be determined by your problem-solving abilities. As a broker, once you perfect this expertise, you will be in high demand.
For example, you might be tasked with locating insurance coverage for a client who has odd insurance requirements. Problem-solving skills come in handy in this situation. The more problems you solve, the better you get, much as diamonds are made by a combination of heat and pressure.
- Customer Service
As a broker, you’ll be in charge of dealing with people, solving their various difficulties, and personalizing solutions to their satisfaction. This is customer service, and client pleasure is critical to your brokering success. Customers must be treated with care; for example, while negotiating terms with a client, you must determine exactly what the customer wants and what is best for the consumer. You must establish a rapport with the customer, make them feel at ease, and convince them that they can trust you.
It’s crucial to follow through on your promises. This ability impacts how many clients will seek your help. You should be able to go above and above for your clients, but you should also be ready to deliver “tough messages” when necessary.
- Numeracy: Because you will be working with numbers all of the time as a broker, you must be mathematically inclined. This job necessitates the ability to perform mathematical calculations quickly and accurately. Errors should be avoided because you will be relying on your mathematical abilities to calculate enough insurance coverage. When mistakes are made, you should be able to call them out and remedy them by going through massive amounts of data. Clients may demand revisions to their insurance policies, and the ability to look at numbers from a variety of angles will be useful in this field.
- Organization: Numbers and calculations will necessitate meticulous organizing. As a broker, you must maintain your work organized to prevent making costly mistakes. In this field of work, time is of the essence, and the organization will help you preserve it.
The organization will also help you operate more comfortably and efficiently by reducing stress. It also encourages customers to return.
- detail orientations: An insurance broker must be able to pay close attention to details to detect even the tiniest mathematical error. Dealing with large amounts of data in the form of numbers can be challenging at times, and mistakes will inevitably occur; however, these skills complement your problem-solving abilities by allowing you to recognize and remedy these errors. You’ll avoid calamities caused by a missing decimal point if you can detect little errors.
- Communication: When someone can talk effectively and confidently while also using nonverbal clues like eye contact and body language to good advantage, they are said to have great communication skills. Your ability to negotiate will be mainly reliant on your communication skills. You will save time if you communicate clearly, and everyone you are dealing with must be able to grasp what you are saying. Client confidence will be boosted by good communication abilities.
- Negotiation: Negotiation is the ability to agree, and it is a key broker requirement. You may find yourself in circumstances where you disagree with your client, but you must be able to talk your way out of them by presenting proof or reasoning when necessary. Strong communication skills can help you communicate effectively what you need from the clients or other parties involved. Make sure to treat all parties involved with care and respect so that everyone is happy.
How to Become a Broker
Follow these to find your way into your dream profession of becoming a broker:
- Attain a High School Diploma
To practice, all brokers must have a bachelor’s degree. Individuals must, however, have a high school diploma to be admitted to a bachelor’s program. Some colleges will accept GED applicants.
- Earn a Bachelor’s Degree
One of the most important steps toward becoming a stockbroker is to obtain a bachelor’s degree. A bachelor’s degree normally takes four years to accomplish, but this number varies depending on credit requirements and personal course loads. Accelerated programs are available at several colleges for full-time students.
A bachelor’s degree in a field related to stockbroking is required for the FINRA exam series. Most colleges, on the other hand, do not offer specialist stockbroking degrees. As a result, many aspiring stockbrokers major in finance or business.
Business degrees teach students how to run a business on a day-to-day basis. Stockbrokers can engage with business owners more effectively if they understand what it takes to run a business. Marketing, ethics, human resources, and business law are just a few of the topics covered in this flexible degree. Finance topics such as accounting are also covered in the programs.
This degree can help students who aren’t sure if they want to be a stockbroker but know they want to work in the business world. A bachelor’s degree in business teaches the fundamentals of disciplines such as securities and stock trading, and some colleges may provide a concentration in one of these areas.
A bachelor’s degree in finance offers a more focused education. As a result, a finance degree usually focuses on issues that are more closely related to stockbroking. Students learn how to evaluate the value of securities in common finance courses. Financial accounting and finance banking are also taught to students.
Because it is not a complete, multi-subject major, a finance degree is best suited to individuals who are confident in their ability to pursue a career as a stockbroker or in a similar field. Financial counselors, accountants, auditors, and loan officers are all possible careers for finance degrees.
Learners should study course descriptions before enrolling in a business or finance program to verify that it aligns with their professional aspirations. Admissions counselors can also assist students in choosing the appropriate major.
- Finalize an internship
Internships are required for most business and financial degrees. Some internships pay money, while others are exclusively for academic credit. An internship allows students to gain practical experience in a business setting while being supervised. Students can also use these learning opportunities to construct portfolios and improve their resumes.
- Locate a Sponsor to Take the Necessary Licensing Exams
Stockbrokers must pass the FINRA tests to help consumers and corporations purchase, sell, and trade stocks. Sponsorship from a FINRA-regulated financial business is required for these tests. Individuals can apply for sponsorship by filling out Form U4 from the Financial Industry Regulatory Authority (FINRA).
- Take and pass the licensing exams
Before starting their career as a stockbroker, they must pass several exams. FINRA Series 7 and Series 63 tests are required in almost every state for stockbrokers. The Series 7 exam tests candidates on financial issues related to securities trading. In addition to securities trading, Series 63 focuses on state norms and laws.
Where to Work as a Broker
Brokers work in the following places:
- Large and small brokerages
- Financial advice companies
- Insurance or reinsurance companies
- Insurance risk management departments
Broker Salary Scale
The majority of a stockbroker’s income comes from commissions. Some stockbrokers who work for investment firms may be paid a low base pay. Stockbrokers get an average yearly bonus of $5,833 and a profit share of $5,129, according to PayScale.
Stockbrokers must acquire sales skills, create a large client base, and form trustworthy relationships with clients with large budgets to advance up the compensation ladder. As a result, experienced stockbrokers earn more than twice as much as entry-level employees.
Stockbrokers with 5-9 years of experience, for example, earn an average of $69,500 per year. Stockbrokers’ average annual pay rises to $90,000 after working for 10 to 19 years.
Brokers’ beginning wages in the United Kingdom range from £25k to £35k per year. With some further expertise, this can rise from £45k to £80k per year. Brokers with high earnings can earn up to £150,000 per year.