The main role of a junior stockbroker is to augment the work of a stockbroker. He advises individual clients and retail investors on investment decisions based on their needs and financial ability. He works on the agreed investment orders on the floor of the securities exchange and follows up on the execution of the purchase of sale orders. Junior stockbrokers enrol as trainees upon graduating from college and report to the stockbroker.
A junior stockbroker should have a minimum of six months telesales or brokerage experience in addition to a relevant business, finance, economics or sales diploma or bachelor’s degree.
Certification or Licensing
Junior brokers need to register and receive certification from the Financial Industry Regulatory Authority (FIRA) if they intend to work independently or with registered and licensed stockbrokers. Before they are registered, they must have at least four months experience, which they can gain through an internship in a brokerage firm, and pass the General Securities Registered Representative Examination. Registered securities representatives must attend education classes to maintain their licenses.
Responsibilities and Duties
A junior stockbroker observes stocks and the money market and reports to the broker on stock market trends, changes and stock prizes. She makes calls to clients to inform them of potential investment opportunities and makes recommendations. She builds relationships with investment clients through regular correspondence such as e-mails and face-to-face consultations. She finds good sales leads. She carries out research on information that would benefit clients. She advises clients on appropriate investment options in the stock markets. She places transactional orders with floor brokers. She prepares and maintains a client’s database and updates it as frequently as possible.
He should have a clear and crisp telephone voice. He should be self-confident, ambitious and self-motivated. He should be a good communicator with strong selling skills and have knowledge of financial markets. He should be flexible to take on errands for the broker like check deposits and delivery of orders.
Junior brokers work in an office, in a demanding and fast-paced environment. They have a lot of pressure from their supervisors because the work is commission-based, and the more clients the junior brokers serve, the more the profits the company makes. Some securities and brokerage agencies operate 24 hours a day so junior brokers may work in shifts of about 12 hours a day. A junior broker often works for more than 40 hours a week and most of this time is spent making telephone calls and talking with clients. She also travels a lot in order to meet with clients.
According to the Bureau of Labor and statistics, brokers earn a median annual salary of £44,642 while junior stock brokers who are just starting out an average salary of $ 17,000 per year as of July 2010.