4 answers
TerrellCodman3
Student
United States
23
Questions
Updated
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Whats The Pros And Con Of Being A StockBroker OR Just Working In Fiance
Would Like To Know Because I Want To Work In The Busniess Field? #business #accounting #college-majors #stock-broker
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4 answers
Jtieng
Student
New York, New York
0
Questions
Updated
Jtieng’s Answer
A stock broker usually helps individuals make investments into companies or groups of companies (funds). You're basically pitching an idea or company to someone based on some research you've done. Finance is so broad that it's hard to compare directly. You need to find a specific area of finance that sounds interesting to make a comparison.
Colin Andrade
Data & Analytics at PwC
5
Answers
Updated
Colin’s Answer
Hello - let me try and answer your question about the Pro's and Con's of being a stockbroker specifically. I spent four years working for an investment bank where we had a department that consisted of stockbrokers for large, asset managers (we called this equity sales). Please note that this list describes stockbrokers dealing with large, professional investors and not stockbrokers who pitch stocks to the common, individual investor (you, or me, or any person who has a small sum of money to invest).
Pros:
- Learning about new sectors and companies every single day
- Working with the smartest investors in the world to help them make investment decisions
- Spending time with management teams of publically listed companies
- Access to investment bank research departments who publish very high quality research notes on listed companies
- The hours worked are better than the traditional "investment banker"
- Pays well
Cons
- You have to be very good at developing relationships with investors and enjoy being a people person
- It requires you to be reachable at all times in case a client has a question
- Depending on the bank or brokerage you work for, you may not have flexibility when it comes to choosing what stocks to pitch
- Making phone calls to clients all day can sometimes be monotonous
- Lots of pressure to get your clients to trade with your bank/brokerage so that your bank gets paid in commissions
- You must be a morning person! Most brokers will be in by 7am at the latest to read research and prepare for the market open.
Pros:
- Learning about new sectors and companies every single day
- Working with the smartest investors in the world to help them make investment decisions
- Spending time with management teams of publically listed companies
- Access to investment bank research departments who publish very high quality research notes on listed companies
- The hours worked are better than the traditional "investment banker"
- Pays well
Cons
- You have to be very good at developing relationships with investors and enjoy being a people person
- It requires you to be reachable at all times in case a client has a question
- Depending on the bank or brokerage you work for, you may not have flexibility when it comes to choosing what stocks to pitch
- Making phone calls to clients all day can sometimes be monotonous
- Lots of pressure to get your clients to trade with your bank/brokerage so that your bank gets paid in commissions
- You must be a morning person! Most brokers will be in by 7am at the latest to read research and prepare for the market open.
Taheri Bharmal
Chartered Accountant
5
Answers
Kuwait City, Al Asimah Governate, Kuwait
Updated
Taheri’s Answer
Pros
Potentially Good Pay
One of the major pros of being a stockbroker is the potential for good pay. You can earn a very high base salary if you stick with the job and are successful over time. Your pay can be enhanced by commissions and bonuses as well. Successful stockbrokers can become very wealthy over the course of a career.
Job Security
A benefit of being a stockbroker is job security. There will always be a demand for stockbrokers as long as there are financial markets. This is true even with the rise of algorithmic trading and day trading. You will never have to worry about being unemployed as a stockbroker. This is especially true if you are successful and become well-known within the financial industry.
Career Advancement Opportunities
Something that is a great advantage of being a stockbroker is the opportunity for career advancement. You will be able to slowly climb the ladder within a company to higher positions. You could find a way into management if you meet some basic educational requirements. Stockbroking is rarely ever a dead-end job.
Cons
High Stress and Long Hours
A clear con is that stockbrokers are in high-stress positions that require working long hours. You are constantly going to have to perform. You will have to keep your performance metrics above the competition. You might have to work 14 hours or longer a day. Some successful stockbrokers can have a difficult time leading a normal life outside of work.
The Markets Affect Your Finances
A con that few people realize is that your finances and income will normally be affected by the movements of the markets. If the economy goes into a downturn or recession, you will have fewer customers, fewer profitable trades and more losses. Your personal economic wellbeing is going to be tied to the larger economy and stock markets.
Cold-Calling and Angry People
A final disadvantage is that stockbrokers need to constantly bring in new business. This often means cold-calling people and trying to sell your services or products on the phone. This is basically outbound telemarketing. You will encounter angry or upset people while making these calls.
Becoming a stockbroker isn’t for everybody. It’s all about setting expectations and priorities. If you think it is for you, then be ready to put in the hard work and long hours. But you will be rewarded handsomely in the end.
Potentially Good Pay
One of the major pros of being a stockbroker is the potential for good pay. You can earn a very high base salary if you stick with the job and are successful over time. Your pay can be enhanced by commissions and bonuses as well. Successful stockbrokers can become very wealthy over the course of a career.
Job Security
A benefit of being a stockbroker is job security. There will always be a demand for stockbrokers as long as there are financial markets. This is true even with the rise of algorithmic trading and day trading. You will never have to worry about being unemployed as a stockbroker. This is especially true if you are successful and become well-known within the financial industry.
Career Advancement Opportunities
Something that is a great advantage of being a stockbroker is the opportunity for career advancement. You will be able to slowly climb the ladder within a company to higher positions. You could find a way into management if you meet some basic educational requirements. Stockbroking is rarely ever a dead-end job.
Cons
High Stress and Long Hours
A clear con is that stockbrokers are in high-stress positions that require working long hours. You are constantly going to have to perform. You will have to keep your performance metrics above the competition. You might have to work 14 hours or longer a day. Some successful stockbrokers can have a difficult time leading a normal life outside of work.
The Markets Affect Your Finances
A con that few people realize is that your finances and income will normally be affected by the movements of the markets. If the economy goes into a downturn or recession, you will have fewer customers, fewer profitable trades and more losses. Your personal economic wellbeing is going to be tied to the larger economy and stock markets.
Cold-Calling and Angry People
A final disadvantage is that stockbrokers need to constantly bring in new business. This often means cold-calling people and trying to sell your services or products on the phone. This is basically outbound telemarketing. You will encounter angry or upset people while making these calls.
Becoming a stockbroker isn’t for everybody. It’s all about setting expectations and priorities. If you think it is for you, then be ready to put in the hard work and long hours. But you will be rewarded handsomely in the end.
Hammad Saeed
Finance Assistant
10
Answers
Peterborough, England, United Kingdom
Updated
Hammad’s Answer
Hi,
A stock broker is a broker who buys and sells securities on a stock exchange on behalf of clients.
The Pros are:
Excellent Salary. It is no secret that those involved in finance make a lot of money. After you acquire more experience, you may find yourself with an even higher salary. Most financial advisers work on commission, which is a system where income relies on the clients that are brought in and kept by the analyst. There are financial analysts who gain six digits in revenue over time!
Diverse Opportunities. When many people think of finance careers, their first thought is accounting. Additional careers include banking, hedge funds, financial analysis, and becoming an enrolled agent. Each offers its own niche of education and benefits for you to enjoy.
The Cons are:
High Stress. As mentioned above, this career demands tight deadlines and high pressure. Some people find it difficult to initially adjust to this lifestyle. If you can get past the initial adjustment, you might find that you can keep up with this dynamic job. Unlike other careers that deal with money, such as accounting, the pressure is related to the local and global economy. Clients may drop in and out depending on the market. Just like with stocks, clients can be highly emotionally reactive to the ups and downs of the market. Often, you will find yourself trying to monitor the emotions of the client so that they do not make rash decisions.
Meeting Quotas. Part of what lends to this stress has to do with the quotas firms make them meet by a certain deadline. As a financial analyst you are also part salesperson because you are always looking for new clients. Networking is an essential part of a financial analyst career, therefore you will likely dedicate a lot of resources—including money—to keep building a client base.
Hope this helps.
Hammad Saeed
A stock broker is a broker who buys and sells securities on a stock exchange on behalf of clients.
The Pros are:
Excellent Salary. It is no secret that those involved in finance make a lot of money. After you acquire more experience, you may find yourself with an even higher salary. Most financial advisers work on commission, which is a system where income relies on the clients that are brought in and kept by the analyst. There are financial analysts who gain six digits in revenue over time!
Diverse Opportunities. When many people think of finance careers, their first thought is accounting. Additional careers include banking, hedge funds, financial analysis, and becoming an enrolled agent. Each offers its own niche of education and benefits for you to enjoy.
The Cons are:
High Stress. As mentioned above, this career demands tight deadlines and high pressure. Some people find it difficult to initially adjust to this lifestyle. If you can get past the initial adjustment, you might find that you can keep up with this dynamic job. Unlike other careers that deal with money, such as accounting, the pressure is related to the local and global economy. Clients may drop in and out depending on the market. Just like with stocks, clients can be highly emotionally reactive to the ups and downs of the market. Often, you will find yourself trying to monitor the emotions of the client so that they do not make rash decisions.
Meeting Quotas. Part of what lends to this stress has to do with the quotas firms make them meet by a certain deadline. As a financial analyst you are also part salesperson because you are always looking for new clients. Networking is an essential part of a financial analyst career, therefore you will likely dedicate a lot of resources—including money—to keep building a client base.
Hope this helps.
Hammad Saeed