Not everyone that employs a stockbroker is looking to make fast $$$$$. These days, many people use a stockbroker to provide them with advice on long term share investments that will fund their childrens' education or allow them to retire comfortably.

In Western Australia there are around 570 stockbrokers, 67 per cent of whom are male.

Ninety two per cent of stockbrokers work in the Perth metropolitan area. The rest are mainly in the South West.

To trade in securities, you are required to hold an 'authority to trade', which is issued by a licensed stockbroking firm with the Australian Securities and Investments Commission.

Educational requirements to become a stockbroker differ, depending on the firm you work for. The Financial Services Institute of Australasia offers courses relating directly to stockbroking - a Diploma of Financial Markets and a Graduate Diploma in Applied Finance and Investment.

Own A Piece Of The Action

Stockbrokers buy and sell stock market shares for their clients. Shares may be in any company that is publicly listed on the stock exchange. Your clients can get to own a piece of BHP Billiton, the Commonwealth Bank or even a part of a multinational company like IBM.

A company makes available to the market a specific number of shares. The price of these shares is determined by what investors and stockbrokers think they are worth and whether they think prices generally are heading up or down. Everyone who invests in the stock market wants to make money but share prices rise and fall and there's always the risk of losing.

''We deal in the future, with people who are investing for their future,'' says stockbroker Tim Willoughby.

In Western Australia, the stock market opens at 8am and closes at 2pm. Therefore, when a stockbroker arrives at work, they've had little time to prepare for the day's work (unlike the Eastern States where the stock market opens at 10am). It is essential for them to catch up on what has happened in the market overnight and gauge the effect on listed companies and their share prices.

This means reading plenty of newspapers, stock market analysts' and strategists' reports, emails from colleagues, and company reports. A morning meeting may also be held so that this information can be shared.

''We can't help clients, if we are not well informed and up to the minute ourselves,'' says one stockbroker.

Once the stock market closes, stockbrokers may phone their clients about their trading, or carry out general client correspondence or meet with company executives who provide information on sales results and new issues that may affect their share prices.


Choose Your Clients Carefully

Stockbrokers must be very selective of their clients. Any transaction made on the stock market, either to buy or sell, is legally binding. Therefore, you must know that your client has the money to buy, or the shares to sell.

BNP Equities Private (Australia) stockbroker Kim Skidmore says,

''The number one rule of being a stockbroker is know your client and know your business!''

There are a number of skills and personal attributes needed to be a stockbroker. It is essential to gain the trust of clients who must be confident with the information you provide them and confident that you will take good care of their money. Stockbrokers must also be committed to their job and have a professional attitude.

It's a high stress job, but Johnson Taylor Potter stockbroker Marilyn Ladner says she thrives on the fast paced work environment.

Stockbrokers work in stockbroking firms in an open dealing room, and also in offices or meeting rooms when consulting with clients.

It's Who And What You Know

Employment growth in this area is above average. Positions are usually filled through referrals, so if you are interested in this area of work, you need to have well established contacts with potential employers. Most firms prefer employees who have well established networks and sound financial understanding, both of which can be developed through experience in a number of industry sectors.

In smaller firms, salaries tend to be on a negotiable commission basis. In larger firms, stockbrokers may be salaried. Starting salaries begin at around $32,00 per annum. With a few years' experience, this may go as high as $60,000 and up to $140,000 (plus bonuses), or even higher, for more experienced brokers.

While the required 'authority to trade' (which allows you to call yourself a stockbroker) may be granted to you without any qualifications, stockbroking firms usually require formal qualifications.

There are two main ways of entering this profession, either through completion of a bachelor degree or a diploma level course.

Relevant degrees include commerce, business, accounting, finance, economics, mathematics, and actuarial studies. Most universities in Western Australia offer some or all of these courses. For more information, you can check out the Universities website listed below or contact the institution direct.

A Diploma of Financial Markets is also available to those who do not wish to complete a university degree. This course is available from the Financial Services Institute of Australasia (FINSIA). For more information, please contact the Institute.

University graduates can further develop their knowledge and skills by completing a Graduate Diploma in Applied Finance and Investment offered by FINSIA.

For more information about licensing requirements, please contact the Australian Securities and Investments Commission (ASIC).

	Other Training Providers
	National Training Information Service website.
	TAFE Colleges
	Homepage links and contact details for all TAFE Colleges in WA.
	TAFE Handbook
	An online guide to full-time TAFE courses available throughout WA.
	Universities
	Homepage links and contact details for all Universities in WA.

Australian Securities and Investments Commission
Level 1 66 St Georges Tce Perth WA 6001 Ph: (08) 9261 4200 Fax: (08) 9261 4210 Email: infoline@asic.gov.au

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