Financial broker

A financial broker


Financial brokers undertake financial market activities on behalf of their clients. They monitor securities, financial documentation of their clients, market trends and conditions, and other legal requirements. They plan buying and selling activities and calculate transaction costs.

Financial brokers typically do the following duties:

  • monitor prices, trends, and other market factors affecting the supply and demand of commodities
  • negotiate the purchase and sale of commodities such as grains, wool, minerals and metals
  • research and review available finance and insurance products to suit client needs
  • recommend loan products that meet client needs
  • calculate mortgage repayments and explain the mortgage structure to clients
  • explain insurance policy conditions, risks, and benefits, and make recommendations
  • arrange insurance, mortgages, and finance through banks, financiers, and insurance companies
  • prepare documents that set out the conditions of finance, repayments, and loan periods
  • broker commercial and property leases and finance.

Other titles

The following job titles also refer to financial broker:

financial services manager
financial services broker
finance broker
finance adviser
financial services adviser

Working conditions

Financial brokers spend most of their day meeting with clients and assessing their current financial situation to help them determine investment opportunities that will benefit their finances. When brokers are not meeting with clients, they are organizing paperwork, keeping track of financial records and monitoring accounts or other financial information for clients.

Financial brokers often work under stressful conditions and have to deal with clients who can become frustrated, nervous about financial situations or overall unpleasant when it comes to dealing with their money. They may have to help make large decisions in a short period of time or be given a large work load without much time to complete it. Financial brokers need to be able to stay calm and patient when the job gets stressful or complicated.

Brokers rarely work a standard 40 hour workweek. They often find themselves working late hours into the evening finishing up paperwork or doing last minute work for a client. It is also not unusual for brokers to work weekends or even over holidays to make sure they get everything that needs to be done for a client.

Minimum qualifications

Financial brokers usually have a bachelor’s degree in business, accounting, economics, marketing or a related field pertaining to finances. Many will further their education by obtaining a master’s degree to learn more advanced business practices that can be used in the real world.

Depending on what form of financial services a broker intends to work in, they may need to obtain a certification within tlocal or national authorities. Some careers require brokers to take an exam to become licensedy.

Most firms that hire financial brokers will provide intense on-the-job training to get them familiar with business practices as well as services and products they provide. Some larger firms may even give new employees classroom instruction that involves tests and assessments to determine whether or not they are a good fit or what type of position would be best for them. They also teach business tactics, selling techniques, and effective public speaking skills that will help them succeed within the company.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Financial broker is a Skill level 3 occupation.

Financial broker career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to financial broker.

securities broker
stock broker
financial trader
stock trader
securities underwriter

Long term prospects

These occupations require some skills and knowledge of financial broker. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of financial broker with a significant experience and/or extensive training.

dividend analyst
actuarial consultant
personal trust officer
middle office analyst
securities analyst

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of financial broker.

  • Financial products: The different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.
  • Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
  • Economics: Economic principles and practices, financial and commodity markets, banking and the analysis of financial data.
  • Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.
  • Financial jurisdiction: Financial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction

Essential skills and competences

These skills are necessary for the role of financial broker.

  • Protect client interests: Protect the interests and needs of a client by taking necessary actions, and researching all possibilities, to ensure that the client obtains their favoured outcome.
  • Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
  • Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
  • Synthesise financial information: Collect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.
  • Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
  • Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
  • Manage financial risk: Predict and manage financial risks, and identify procedures to avoid or minimise their impact.
  • Apply technical communication skills: Explain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.
  • Trade securities: Buy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.
  • Provide financial product information: Give the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.
  • Maintain financial records: Keep track of and finalise all formal documents representing the financial transactions of a business or project.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of financial broker. However, mastering this knowledge allows you to have more opportunities for career development.

  • Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
  • Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of financial broker. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Trace financial transactions: Observe, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanagement.
  • Communicate with customers: Respond to and communicate with customers in the most efficient and appropriate manner to enable them to access the desired products or services, or any other help they may require.
  • Optimise financial performance: Direct and coordinate the organisation’s financial operations and budget activities, in order to optimise financial performance.
  • Provide cost benefit analysis reports: Prepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment in advance over a given period of time.
  • Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
  • Maintain records of financial transactions: Collate all the financial transactions done in the daily operations of a business and record them in their respective accounts.
  • Communicate with banking professionals: Communicate with professionals in the field of banking in order to obtain information on a specific financial case or project for personal or business purposes, or on behalf of a client.
  • Provide support in financial calculation: Provide colleagues, clients or other parties with financial support for complex files or calculations.
  • Conduct financial audits: Evaluate and monitor the financial health, the operations and financial movements expressed in the financial statements of the company. Revise the financial records to ensure stewardship and governability.
  • Operate financial instruments: Work with financial instruments such as stocks, bonds, mutual funds and derivatives.
  • Handle financial disputes: Handle disputes between individuals or organisations, either public or corporate, which deal with financial matters, accounts, and taxation.
  • Handle financial transactions: Administer currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

ISCO group and title

3311 – Securities and finance dealers and brokers

  1. Financial broker – ESCO
  2. Financial Broker | Your Career
  3. Financial Services Broker Job Description –
  4. Featured image: Image by Sergei Tokmakov, Esq. https://Terms.Law from Pixabay
Last updated on February 27, 2023

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