Stockbrokers manage investments for individual clients, companies or other large organisations. They buy and sell stocks, shares and other financial products to get the best return for their clients.

Stockbrokers can offer three types of service:

• discretionary – they manage all their clients’ investments and have permission to buy and sell investments without consulting clients
• advisory – offer clients various options and advice, which the client can decide whether or not to take
• 'execution only' do not give advice, and act only on clients' instructions to buy and sell.

They may specialise in one type of service, or offer all three. Across all types of service the work of a stockbroker is to:

• manage and review clients' investment portfolios
• research financial markets
• answer clients' questions
• keep clients informed about their investments
• instruct stock market traders to achieve the best market prices
• market their services to new clients.

Stockbrokers work closely with investment analysts, who research and report on how companies and markets are performing, to help stockbrokers decide on the best investments for clients.

In larger companies, stockbrokers usually specialise in investing in certain markets such as technology or finance, or in specific regions such as Europe or the Far East. Stockbrokers who work for private individual clients are sometimes known as investment managers or wealth managers.

Hours and Environment

As a stockbroker you can expect to work long hours, Monday to Friday. The London Stock Exchange opens at 8am, so you will normally be at your desk by 7am, and stay until the trading desk closes (often around 6pm). If you are working with commodities or Far East markets you may work longer and more irregular hours.

You will usually work in a large, open-plan office, and spend most of your time at the computer and on the telephone. It can be a noisy and pressurised environment.

Skills and Interests

To be a stockbroker you should:

• be able to understand complex information quickly and communicate clearly
• have good mathematical skills
• be confident and decisive
• be able to work under pressure
• work well both as part of a team and on your own initiative
• have drive and determination
• pay attention to detail
• be able to judge risks and predict trends in the market
• be honest and trustworthy.

Language skills can be an advantage if you want to work with overseas clients and markets. German, Japanese, French are Russian are especially useful.

Entry

To become a stockbroker you will normally need a degree, usually of class 2:1 or above. Your degree could be in any subject, but economics, business, finance or accountancy may increase your chances. Please check with colleges or universities for degree entry requirements.

If your degree is not in a business-related subject, you must be able to show that you understand how financial markets work. You may find it useful to do a work experience placement in an investment bank or similar company.

You will usually begin as a graduate trainee in an investment bank or a firm of stockbrokers. Many companies have tough recruitment processes, with psychometric and aptitude tests and several interviews.

It is becoming more common for employers to ask for postgraduate qualifications such as an MSc or MBA.

You could also become a trainee stockbroker after gaining experience as an investments administrator or investment analyst (see the Stock Exchange: Investment Analyst profile).

Training

A stockbroker must be registered as an ‘authorised person’ with the Financial Services Authority (FSA). To be registered, you must pass an appropriate examination approved by the FSA. See the Financial Services Skills Council website for a full list of appropriate exams.

You will be trained on the job, and will also study for an FSA-approved qualification from either the Securities and Investments Institute (SII) or the United Kingdom Society of Investment Professionals (UKSIP). You could take either of the following:

• SII Certificates in Investment Management, Securities or Financial Derivatives
• UKSIP Investment Management Certificate.

After around three years’ experience, you could take more advanced professional qualifications, such as:

• SII Diploma, or
• Chartered Financial Analyst (CFA), through the UKSIP.

You should also have continuous training throughout your career, to keep up-to-date with new procedures and regulations.

See the SII and UKSIP websites for full details about their qualifications.

Experienced financial advisers can also give investment advice and manage clients' portfolios if they have had relevant training, such as the Diploma in Financial Planning. See the Financial Adviser profile for details.

Opportunities

Most jobs are based in London but there are opportunities in other parts of the United Kingdom. Work is available in stockbroking firms, investment banks and private banks.

Promotion depends on individual performance. Stockbrokers often move on to become account managers and fund managers.

Experienced stockbrokers can set up their own firm. Some stockbrokers go to work overseas in major financial centres.

Annual Income

Figures are intended as a guideline only.

Starting salaries range from £24,000 to £35,000 a year.
Experienced stockbrokers can earn £45,000 to £80,000.
Some stockbrokers earn over £150,000 a year.

Stockbrokers also often earn large bonuses based on personal or company performance.

Further information

25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: 020 7066 1000 90 Basinghall Street
London
EC2V 5AY
Tel: 020 7796 3000 51 Gresham Street
London
EC2V 7HQ
Tel: 0845 257 3772 Centurion House
24 Monument Street
London
EC3R 8AQ
Tel: 020 7645 0680