In today’s ever-growing financial market, various professional figures are carving out their space. In this article we will go to see a pivotal figure in this sector: Broker how to become, what are his duties, how much he can earn and in what areas he moves. Come on, let’s find out about this fascinating broker’s job.
Financial Broker what is it?
Let’s start by understanding who is essentially a broker.
When this figure is mentioned, we are essentially talking about an independent professional or a company that follows financial transactions on behalf of third parties and acts on a number of different financial assets, which can include stocks, forex, real estate and insurance, receiving a commission. based on revenues.
Financial brokers usually deal with providing market data and advice on products to buy or sell.
Obviously, in order to give advice and perform sales, an intermediary broker must have the authorization from the customer to perform financial transactions on behalf of third parties.
Types of Brokers
There are different types of brokers on the market, specifically:
- Stock broker
- Forex broker
- Full service intermediary brokers
- Discount broker
Obviously, the modus operandi of each type of broker differs a lot.
Some, for example, are financial brokerage execution brokers; while others execute, advise and invest on behalf of clients.
Let’s go to see in detail the various types of brokers that could happen to rely on us in the future.
Let’s start with the stock broker, or investment broker, this figure deals with managing the trading of shares, because investors, alone, cannot buy shares directly from the market, so they need to have an intermediary and this is where the broker enters. on stage, he buys and sells the shares that the customer indicates to him.
Let’s now move on to the forex broker, known as the retail forex broker and deals with brokerage, buying and selling currency for third parties, on the trading markets 24 hours a day and offers clients the possibility to speculate on Forex currency pairs in the world markets. .
To be competitive, brokers try to minimize the economic demands, but the client still has to pay some commissions when approaching them, including the Forex spread.
Forex transactions in this market are always made in currency pairs, meaning that you buy or sell the pair you want to trade, for example EUR / USD, GBP / USD, etc.
Full service brokers
Another important figure are full service brokers, also called financial consultants.
These professionals offer more than one service, for example:
They deal with pension plan planning, investments and tax and bureaucratic advice
These independent financial advisors are perfect for clients who have little time to deal with their financial situation.
Full service intermediaries charge higher than market average fees due to the amount of services they offer.
The last category that we are going to analyze is that of the discount broker, or discount broker, an intermediary that applies a lower commission because it only takes care of performing the operations requested by the customer.
Therefore, the more the number of operations that the discount broker performs for a client increases, the lower the amount requested will be.
If you turn to this type of broker, you need to independently manage your portfolio.
How do you become a broker?
If we want to be successful in this sector, the first thing to do is to study and choose an excellent broker system.
We must try to rely only on the best quality, reliable and possibly cheap online brokers.
We initially aim to practice with a virtual trading demo account that offers an entry trading bonus and good social trading systems, especially if we are beginners.
We also evaluate well that the broker system we rely on has online support that is always present, given that especially at the beginning, a guide is certainly of great importance.
Another fundamental thing is to remain calm and not get caught up in emotions, if we see that a Forex currency pair on which we had bet, is struggling, better to sell immediately.
We avoid waiting for the online trading market to change trend in our favor, we would only risk copious capital losses.
It takes time and a lot of practice to learn how to interpret the evolution of the trading market.
What to study to become a broker?
To undertake a career as a broker as you become, as mentioned above, it is necessary to do a lot of practice and above all to study in depth.
There is no real brokerage course for this sector, but there are some faculties that offer adequate preparation for the profession in question. We advise you to undertake these degree programs.
Economy and Finance
The first, of course, is the faculty of economics and finance, a favorite of those who want to pursue a career as a financial broker, providing a good foundation on both economic subjects and management.
Another address indicated is undoubtedly the master’s degree in economics, an excellent basis for starting to learn about subjects such as economics, international finance, statistics, marketing and commercial law.
Degree in Finance
An ideal choice that allows you to train on concepts such as securities, investments and financial management is the degree in finance.
Then there is the business administration and management course, where it is possible to train in business administration and deepen the financial markets, with ample space for statistics.
Another prudent choice could be the mathematics faculty, in fact, many brokers come from a three-year course in mathematics, followed by a path more focused on finance or trading.
Finally, we find the degree in law, a very solid course of study that gives prestige to the curriculum and can open wide job opportunities.
At the end of the studies it will be possible to decide whether to attend a trading course, a finance course or a master’s degree.
How much does financial broker earn?
In the final part of the article we deal with how and how much an established broker can earn.
First of all, it should be noted that the salary of a broker as it becomes varies depending on the type of work performed, for a company or on one’s own.
In the first case, he receives a broker salary consisting of a fixed part plus a variable part given by commissions.
If, on the other hand, the broker in question works on his own, he has variable broker earnings, which depend solely on the client portfolio and his business intuition.
According to an estimate, the average financial broker salary is € 90,888 per year, obviously, to get to these figures it takes commitment, talent and experience.
Because only with time and work can you refine your financial broker skills and thus you can expand the customer portfolio to be managed, in order to earn really important figures.
Dear readers of Financial Empires, now that you have all the information you need on how to become a successful broker, it’s up to you and your talent!
Financial Empires, The Editorial Staff
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