Even with the advent of technology, the stock market cannot do without the traditional stock broker firms, which use their vast experience and sharp business intuition to provide top-notch services to customers. Indians are risk takes, which is seen by the daily surge of stocks in the BSE. To match with the demands and needs of such budding investors, various brokerages provide top level services. Due to competitive nature of the market, many firms have provided for the competition and emerged at the top. The top 10 stock brokers in India include India Infoline, ICICIdirect, Share Khan, Indiabulls, Geojit securities, HDFC, Reliance Money, Religare, and Angel Broking.
The tedious journey to the top.
- There is no routine developed by the brokers, their work is synonymous to that of a small-time businessman. They make the choice between their clients and the type of investment. However, this favourable situation occurs for top stock brokers.
- A struggle ensues for reaching an established point in a brokerage firm. It takes almost a decade to reach the point of absolute luxury. These 10 years are mostly used in acquiring new clients with credible assets to invest. The inflow in commissions is also less, because the average stock broker takes 1% revenue on the assets currently being managed, and they are allowed to only keep 30-40% of that revenue. That means to earn atleast $ 30-40,000 for the year, they should acquire an investment of $ 10,000,000. This leads to an incredibly low yearly income and many initial difficulties.
- This leaves the newly budding stockbrokers to engage days and days in marketing their services, something that stockbrokers with strong connections save up on.
- They spend hours in their cubicles, contacting their current clients and developing recommendations for their portfolio. They try to get meetings with potential investors and wrap up the paperwork after sealing deals. They also indulge in teaching seminars and networking to clients in order to rope them in.
Hardships faced in brokerage firms.
- Brokers come in early to study the market and create strategies suitable for their clients. Then the hectic hours between 10 am to 3.30 pm are spent by these brokers on their phones and computers, trying to acquire shares.
- Big trade companies provide sufficient training to newly hired brokers and absorb them in the trade. The brokers have to go through a series of rigorous tests which vary all over the world to attain their license of brokering, which is mandatory by the government of every country.
- These big companies also set a sales target for hired brokers which have to be completed, to understand the ranking and worth of the broker. This is the threshold and many people fail to cross it, which makes them unworthy for their jobs. Extensive calling and client interaction is what helps in meeting the target, which is the road to success for aspiring brokers.
The ups of brokering.
- The brokers are paid through commissions and their salary depends on the volume of their sales. A stockbroker must be patient to see glorious days, which stem from healthy client interaction.
Truly, being a broker is a career choice for the determined.