Securities broker

Securities brokers create the connection between the investors and the available investment opportunities. They purchase and sell securities on their clients’ behalf based on their expertise in the financial markets. They monitor the performance of their clients’ securities, assessing their stability or speculative tendencies. Securities brokers calculate the securities’ price and place orders.

Securities brokers typically do the following duties:

• Interact with customers who want to make investments in the securities market
• Understand the customer requirement and suggest investment options
• Conduct research based on customer’s requirements for making investment suggestions
• Ensure investment options are safe and the customer earns a profit
• Advise customers to invest in securities with minimum risk
• uUpdate customers regarding trends in the investment and securities market
• Advise customers on the right time to buy and sell a commodity or stock
• Conduct an in-depth analysis of security before making a recommendation to a customer

The following job titles also refer to securities broker:

financial services sales agent
junior stock broker
investment broker
stock salesperson

Securities brokers work in offices or cubicles that are clean and well lighted. Fluctuations in market activity may produce an atmosphere of tension within the brokerage.

Although established brokers usually work forty hours per week, beginners who are trying to get customers may work much longer hours. Securities brokers often work weekends and evenings to meet with customers.

A bachelor’s degree in finance or business administration is typically required for securities brokers. A strong understanding of financial laws and regulations, accounting methods, principles of economics and currency, financial planning, and financial forecasting all help work in the field.

Global credentials are also becoming increasingly sought-after as signals of legitimacy and financial acumen. Examples include the certified financial planner (CFP) and chartered financial analyst (CFA) designations.

Securities brokers must be licensed to practice their profession. The requirements for the license vary by location, but in general, it always involves passing an exam.

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.

Securities broker is a Skill level 3 occupation.

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

stock broker
securities underwriter
financial broker
stock trader
financial trader

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

securities analyst
investment analyst
corporate banking manager
investment fund management assistant
dividend analyst

This knowledge should be acquired through learning to fulfill the role of securities 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.
• Financial markets: The financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.
• Stock market: The market in which shares of publicly held companies are issued and traded.
• 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

These skills are necessary for the role of securities 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.
• Assess risks of clients’ assets: Identify, evaluate and determine the actual and potential risks of your clients’ assets, considering confidentiality standards.
• Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
• 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.
• 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.
• 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.
• 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.
• Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
• Forecast economic trends: Gather and analyse economic data in order to predict economic trends and events.
• 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.

This knowledge is sometimes, but not always, required for the role of securities 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.
• Statistics: The study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments in order to forecast and plan work-related activities.
• 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.
• Tax legislation: Tax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.
• Electronic communication: Data communication performed through digital means such as computers, telephone or e-mail.
• Accounting: The documentation and processing of data regarding financial activities.

These skills and competences are sometimes, but not always, required for the role of securities 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.
• Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
• 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.
• Operate financial instruments: Work with financial instruments such as stocks, bonds, mutual funds and derivatives.
• Build business relationships: Establish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the organisation and its objectives.
• Provide financial product information: Give the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.

3311 – Securities and finance dealers and brokers

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References

1. Securities broker – ESCO
2. Securities Broker Job Description – StateUniversity.com
3. What Does A Security Broker Do? | Indeed.com India
4. Featured image: By Ank Kumar – Own work, CC BY-SA 4.0