How to Become a Stockbroker in the UK: Career Guide

Becoming A Licensed Stockbroker

A licence is required for a stockbroker after training and certification. Stockbroking is controlled in the United Kingdom by the Financial Conduct Authority. FCA oversees all financial operations in the country. Consequently, UK stockbrokers are regulated by FCA.

CISI is the LSE’s original body for financial professionals. CISI stands for The Chartered Institute for Securities and Investments. It offers a Level 4 Investment Advice Diploma and a Level 7 Wealth Management Diploma. You have to obtain a diploma in order to get the licence.

Another organization that offers a Certificate for Environmental, Social, and Governance (ESG) Investing is the Chartered Financial Analyst Society.  However, CISI is by far the largest organization. In contrast, the CFA is part of a bigger global network. You can study for and get qualified by CFA program as your career progresses.

However, many companies will pay for the course and tests once they hire you. Besides, employers will allow you time off to study. In some cases, companies fund your membership in a professional organization.

In addition, as part of on-the-job training, businesses hold workshops and seminars. The workshops include a variety of job-related issues. Issues such as financial markets, legislative and regulatory changes are discussed with the newly boarded stockbrokers. Firms also host a variety of events and conferences. The events provide wonderful opportunities for networking.

Job Hunting

How to become a stockbroker in the UK, you ask? The final stop for becoming a stockbroker in the UK is to go on a job hunt. Keep an eye on the national newspaper. Newspapers tend to list the top farms in the city quite often.

Furthermore, it’s very important to have personal contact in the industry. Word of mouth referral could get you a position in the industry quicker than any job website.

However, always keep a lookout on the job websites. If there is any particular investment company you would like to work for, drop in your resume.

You can look for job vacancies at:

Furthermore, you could do an apprenticeship at any small or large institution. Your employer might offer you a full-time position after the completion of your apprenticeship. Keep a lookout on national career services to find out whenever an apprenticeship opening is posted near you.

Daily Responsibilities Of A Stockbroker

Now that we’ve addressed how to become a stockbroker in the UK, let’s walk you through the daily responsibilities of a stockbroker.

You’ll find out what a day in the life of a stockbroker looks like. Consequently, you can comprehend what duties you need to carry out once you onboard as a stockbroker. The duties include, but are not limited to:

Research & Analysis

Researching will encase a big part of your job responsibilities. You will have to research the financial market on a daily basis. Consequently, you need to conduct in-depth market research and analysis. Moreover, you have to constantly look into new plans for the expansion and benefit of the company.  You need to research and find new businesses to make a sound investment.

Providing Support To Clients 

Your clients are the heart of the business. Maintain proactive relationships with clients. It will be accomplished through a combination of networking. Moreover, update your clients on the status of their portfolios and new investments on a regular basis.

As a broker, you should not mislead your customers. It is your responsibility to provide honest information all the time. Consequently, you have to provide financial advice and suggestions to clients. The nature of advice will depend on the type of stockbroking service you offer.

Moreover, you have to set up new client accounts frequently and give them a rundown of the process. Consequently, you have to help clients develop their investment strategies. Always ensure your client that meeting their needs is your topmost priority.

Investigative Works

Being a stockbroker means you will often need to put your detective hat on. You have to keep track of the stock market’s performance like a hawk constantly. Consequently, you need to stay updated on the most recent financial and tax legislation.

Moreover, you should stay up to date on the latest financial news and reports. It will help better understand market movements and change drivers.

Marketing & Building Collaborations

Marketing your services will encompass a big portion of your responsibility as a stockbroker. You have to market your institution’s services to potential clients through emails.

Consequently, you can produce summaries of your market research in reports and newsletters. Campaign the newsletters to publicize your business. When clients read thorough reports and newsletters, it will leave a good impression on them.

Consequently, collaboration is the key to long term success for any business. So, make sure you collaborate and work as a team with investment analysts. You might specialize in investing in specific areas in larger organizations. Such as technology or finance, or in different regions.

You have to execute trades or instruct stock market traders to achieve the best market prices.

The business environment is very fast-paced. Hence, you must be able to manage multiple portfolios at the same time. And you have to keep track of your surroundings constantly.

How Much Do Stockbrokers Earn In The UK?

Let’s face it, not every one of us can be a Warren Buffet in this field. But with time and experience, you can definitely climb up the ladder. For newly recruited stockbrokers in a bank, the range of salary will be around £25,000. However, you can expect to earn more as the business is based on commission.

Consequently, a junior stockbroker may earn around £40,000 in large investment companies. With significant bonuses and commissions, your gross earning can be between £100,000 and £150,000. However, salaries vary depending on your level of expertise and qualifications. Also, the length of service with the brokerage firm and the sort of firm you work for should be taken into consideration.

Bonuses are also available for achieving certain goals in this industry. Additional perks of working as a stockbroker include health and travel insurance, private medical coverage, gym membership and travel expenditures. Furthermore, the company can endorse your tuition fees and grant you study leave if you require it.