If you have a strong mathematical ability and an interest in finance then a career as a Stock Broker could be for you.
Career Overview
The job of a Stock Broker is to connect the investor (stockholder) and the corporation in need of funding, by selling stocks and keeping an eye on the finance. You must have ten-out-of-ten skills in the area of finance and will constantly be online, involved in the stock markets. Stock Brokers are essentially in charge of the investment choices they make for their clients. Â
Note: A Stock is something sold by a corporation or bought by a stockholder, that represents a proportion of ownership in the corporation or company. This means that the stockholder (person buying the stock) is entitled to a proportion of the corporation or company’s assets and earnings. Also known as shares.Â
A Stock Broker buys and sells stocks on behalf of clients or the company that he/ she works for. So a Stock Broker is a person that acts as a middleman between two investors on the stock market (online platform where stocks are sold/ bought). Â
Required School Subjects
If you would like to pursue a career as a Stock Broker then you will need the following High School subjects in order to study a related degree at a tertiary institution:Â
- English (Home Language or First Additional Language)
- Pure MathematicsÂ
The minimum requirement is a National Senior Certificate (matric) or National Certificate (Vocational) with exemption/admission to bachelor’s degree, or equivalent.Â
Recommended subjects:Â
- Â Accounting
- Â AP MathematicsÂ
- Â Business Studies / Economic and Management Sciences (EMS)
Institution and APS
You will have to gain an undergraduate degree in either finance or business administration from a registered university. Although a degree is not essential, it’s highly recommended to have some qualifications in business studies or economics. There are a number of tertiary institutions in South Africa that offer an undergraduate degree in one of these fields of study, but we recommend the following:Â
- University of Cape Town (UCT) – Faculty Point Score (FPS) of 480+ for guranteed entrance
- University of South Africa (UNISA) – APS of 21
- University of Witwatersrand (Wits) – APS of 39+
Required Qualification/s
An undergraduate degree in the broad commerce faculty is mostly required for this career, but any opportunities to gain knowledge about the industry, networking and hands-on experience should be taken to better your chances of being hired (for example, interning for the financial sector of a company in your school/ university holidays). You can study towards one of the following qualifications at the abovementioned institutions:
- University of Cape Town (Bachelor of Commerce, majoring in Finance)
- UNISA (Bachelor of Commerce, majoring in Financial Management)
- Wits (Bachelor of Commerce, majoring in Corporate Finance and Investment or Management Accounting)
Being a Stock Broker also usually requires a license. Under South African laws, you will also need to pass the Registered Persons Exam (RPE).
Required Skills
The following skills are needed in order to be a Stock Broker:
- Being a networker and dealing with clients is keyÂ
- Have a forward-planning mindset and be able to handle many tasks at one time
- To be a team player and communicate well with a team (strong communication and interpersonal skills)
- The ability to be formal and interact professionally
- Be a self-starter- grab the bull by the horns!
- Know how to deal with rejection and criticismÂ
- Having the will to work long hours—nights and weekends included
- Having the patience to build up a business- ie. stone-cold perseverance and driveÂ
- A strong interest in finance and investment
Where you can work
The South African stock market is globally very well known; with the JSE (Johannesburg Stock Exchange) being within the top ten Stock exchanges in the world. The most common job positions as a Stock Broker would be in an investment bank or a trading position within the stock market. Most people work as traders in large companies that handle stock investing (rather than working on their own or working in the stock market itself). You will probably find yourself working with the big cats, in a dapper suit and tie. Â
Working Hours
When first starting out, Stock Brokers work very long hours – so start brewing that coffee. Since stock trading begins early, brokers have to be on the job and making big decisions often before the birds are up. After the closing bell, Stock Brokers need to spend time marketing themselves, networking, and building their client base. Some Stock Brokers work 12-hour days, while others work regular business hours, starting early in the day- weekly hours vary.
Expected Salary
As a Stock Broker, you can expect to earn anywhere around the average yearly salary of R200 000 – R400 000, depending on the clients that you work for. Keep an eye out for the British job market, because the Stock Market jobs in the UK pay around R1.5 million a year! Big cities usually have the higher paying jobs – like Joburg and Cape Town.
What to expect
As a Stock Broker, you should expect a corporate, fast-paced kind of career, constantly keeping an eye on the Stock markets and financials. The job requires a great deal of patience and thick skin. When doubt creeps in, remember that your willingness to persevere is what makes you stand out. You will enjoy this career if you are someone who is hard-working, ambitious and loves to dip their toes into the financial world. Being a Stock Broker also often involves a significant amount of travel, as you may visit companies to get a first-hand look at whats cracking or attend business conferences. If closing a business deal gets your heart racing, then this is the career for you!Â
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