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How To Become a Stock Broker in Nigeria
A stockbroker usually acts as a middleman between the clients
and the stock market. Stockbrokers handle transactions for their
clients, who could be individuals or firms. They usually work
for brokerage films but can also work independently.
Primarily, a stockbroker is an intermediary agent that serves as
the middle ground between sellers of stocks from governmental
bodies or companies and buyers who are known as investors. These
agents can either be hired by a company on their own as their
dedicated representative in the stock market; or they can be
affiliated to a brokerage firm which is more practical and
common.
cis nigeria
The applicant needs to register himself as a student. An online
student registration form can be acquired from the website that
needs to be filled. Once the registration process is completed,
the applicant has to submit a membership fee of 10,000 Nigerian
Naira.
Register Yourself for Professional Program
Once the student membership fees have been paid, the individual
can then enroll themselves for the professional exam that takes
place annually in March and September.
Register Yourself Professional Diploma Program certified
stockbroker Nigeria
This is the basic requirement for anyone aspiring to become a
certified and professional stockbroker within Nigeria. Moreover,
in order to be eligible for the professional diploma, an
individual needs to have at least five credit passes in
O’Levels.
Uploading Credentials and Documents
An aspiring applicant is required to upload scanned copies of
documents and credentials on the CIS site.
Qualities of a Stockbroker
The three basic attributes integral in a stockbroker include
trust, hardworking, and the ability to analyze and assess
financial reports.
Trust
Trust is important for any business that aspires to succeed. It
is core ethics that sets itself as the foundation for any
business and foundation. A broker should not cheat or have any
malicious intent. He/she needs to be trustworthy as they are
solely responsible to handle the client’s investment portfolio.
Illustrious
If you are dedicated, you are likely to get great
recommendations from clients, companies, and individuals. As a
broker, you need to be intuitive to seize the opportunities and
a turnkey solution provider who can help his/her clients reach
their business goals faster.
Ability to Analyze and Assess Financial Reports.
Having a sound grip on financial knowledge and frequent reading
can help you grasp the financial trends. Having knowledge
pertaining to the local economy, financial market, fluctuation
in forex, and GDP changes can take you a long way. Your
analytical and assessment skills will help you in making
strategic finance and trading decisions allowing you to give
your clients fruitful financial advisory.
What is the role of a stockbroker?
A stockbroker handles transactions for its clients in the stock
market.
They buy and sell stocks for their clients.
They manage their clients’ investment portfolios.
They research and understand the market and advise their clients
accordingly.
They inform their clients of new opportunities in the market.
They learn about the latest financial and tax regulations in the
market.
Types of stockbrokers
1. Discount stockbrokers
Discount stockbrokers are involved with only the buying and
selling of stocks for their clients. They don’t offer other
services such as personalized research analysis, financial
advice, retirement planning, etc. Discount stockbrokers are not
as knowledgeable about the market as those in full-service
brokerage firms.
2. Full-service stockbrokers
Full-service stockbrokers, as the name suggests, offer fully
specialized services as regards market research, investment
advice, portfolio management, evaluation of financial reports,
reporting investment opportunities, aiding decision-making
process, etc in addition to trading stocks on behalf of the
clients.
They have a wide range of knowledge across the market and offer
high-value services to their clients.
3. Direct access stockbrokers
Direct access stockbrokers leverage technology to advance
trading for investors who have done their research and want fast
transactions and execution through an advanced trading platform.
What skills do stockbrokers need?
A degree or professional certification
Communication skills
Analytical skills
Negotiation skills
Proficiency in maths
Where do stockbrokers work?
Stockbrokers usually work in brokerage firms but they can also
work independently on their own as long as they are certified
and regulated by the relevant regulatory bodies.
Stockbrokers in Nigeria
Like in the global stock market, the stock exchange in Nigeria
follows the same rules, and the roles and responsibilities of
stockbrokers are not exempted. The Nigeria Stock Exchange
Commission (NSE) now Nigeria Exchange Group (NGX) is active in
the market alongside the Security and Exchange Commission. The
Nigeria stock exchange market is one of the biggest stock
exchange markets in Africa and it hosts over 100 licensed
brokers.
How much do stockbrokers make in Nigeria?
There is no definite amount of money stockbrokers can make. A
stockbroker’s commission is usually based on the services they
are rendering and their commission agreement terms with their
clients. This implies that if a transaction has a good return on
investment, a stockbroker will likely earn a higher percentage
of income and vice versa.
Who regulates the stockbrokers?
In Nigeria, the Securities and Exchange Commission is
responsible for regulating stockbrokers. The Nigerian Exchange
Group (NXG) and Central Bank of Nigeria (CBN) are also agencies
that can regulate stockbrokers.
Stockbrokers play an important role in the stock exchange
market. They offer their services to investors and help maintain
a balanced relationship between investors and the market. When
looking to hire a stockbroker, it is important to know the kind
of services you are looking for and how a stockbroker can help
you achieve your goals. Always ensure that you seek professional
advice to avoid issues.
Get our Practical Guide on How to be a Stock Broker in Nigeria.
In this comprehensive guide, we’ll walk you through all the
essential steps you’ll need to take to start your own stock
brokerage firm, from setting up your trading platform and
registering with the relevant regulatory bodies to obtaining the
necessary licenses and insurance.
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