Australian (ASX) Stock Market Forum

Becoming a stock broker?

Joined
Sep 25, 2004
Posts
431
Reactions
0
Re: Stock Broker

You only need to go to TAFE to become a broker?
 

wayneL

Rotaredom
Joined
Jul 9, 2004
Posts
18,741
Reactions
2,554
Re: Stock Broker

I have a good mate who is a broker at macbank.

If you have heaps of wealthy connections who are willing to give you business straight away, you will do well.

It is a lot like being a salesman. If you don't have connections, it will take a while...and some serious networking, pissing in the right pockets etc to build up a business.

My friend was handed some large accounts when he started by a retiring broker, so he was very lucky. He is also a seriously good salesman and has managed to build on this stroke of good fortune very successfully and, consequently is making a totally filthy and obsene amount of money.

So what I am saying is that it it a sales job. Do that well and you will be set.

Cheers
 

wayneL

Rotaredom
Joined
Jul 9, 2004
Posts
18,741
Reactions
2,554
Re: Stock Broker

But Jet is right also, the majority just scratch by.
 
Joined
Sep 12, 2004
Posts
1,714
Reactions
0
Re: Stock Broker

It scary to think that in addition to a stockbrokers TAFE course, you can become a licensed financial planner (arguably a more responsible role than a broker) entirely by correspondance. Shows you the importance of two rules followed by many:

1. Always do your own research
2. Be extremely wary of taking financial advice from anyone worth less
money than you
 
Joined
Jun 17, 2004
Posts
668
Reactions
1
Re: Stock Broker

Mofra,

Be extremely wary of taking financial advice from anyone worth less
money than you
THAT is something I wouldn't bet my money on. Think about all the many sharks out there, especially in the property market who are so called millionairs selling expensive seminars where they teach you how to get 10-50 properties without spending any money yourself. So just because somebody is worth more money than you, doesn't make him any more trustworthy.

I'd say if you don't have any idea about money or investing, then you're most at risk. So before you go and see a financial planner, you should at least have a basic understanding of how things work. The planner should then be able to show you which ones work best for you, based on your needs. It is sad, but financial planners who realise that you don't know anything, tend to push you towards their own goals which in most cases just happen to be excactly the opposite of what you really need.

I remember I went to a financial adviser of one of the big banks one day to see if they actually knew something more than what you can learn yourself. He spent 15 minutes of showing me fancy colourful charts and bars and not once did he mention anything else than their international share fund which at that time just happened to return impressive figures. He prepared all the forms for me to sign without showing me ANY other possibilites. While he was keen to support my view that negative gearing on properties was a much more risky thing to do than what it looked like, he was keen to offer me margin lending on shares without even mentioning the risks involved. Well, it just goes to show that a financial planner is just as good as the products he's earning the biggest commission on. I honestly don't know why your hairdresser is not allowed to give you financial advice when you look at the value you get from your "professional" adviser.

Have a nice weekend

Stefan
 
Joined
Sep 12, 2004
Posts
1,714
Reactions
0
Re: Stock Broker

Stefan,

I can assure you as someone who knows many financial planners working for banks and for private firms, the commisions paid by major fund managers weigh very heavily on the minds of financial planners - who often are as adept at selling as the hype merchants who run seminars. Whilst not wanting to paint all financial planners in a poor light, those working for larger institutions do have sales targets to meet and the rewards for meeting these targets can be quite substantial.
 
Joined
Sep 25, 2004
Posts
431
Reactions
0
Re: Stock Broker

You could have owned 50 or so properties without spending your own money but that was before the prop boom. I hate it when people are writing all these books about getting rich off property when they bought before the boom and cashed in off it.
 
Joined
Mar 16, 2005
Posts
105
Reactions
0
Re: Stock Broker

To be a stockbroker you need your PS 146 which is an ASIC requirement for people giving financial advice, the best way to get it is through the Securities Institute of Australia Diploma in Financial Services or Graduate Diploma in Applied Finace and Investment, and then you need to do the ASX Broker Examination which in a multiple choice format asking about securities industry rules and regualtions.
 
Joined
Jun 22, 2013
Posts
15
Reactions
1
Sorry if this is a silly question, but I couldn't find the answer anywhere online. Say if someone were to become a licensed stock broker just for personal interest - would buy and selling stocks be effectively free because you wouldn't be paying for brokerage because you ARE the broker? Has anyone done this?
 
Joined
May 1, 2007
Posts
2,904
Reactions
45
Sorry if this is a silly question, but I couldn't find the answer anywhere online. Say if someone were to become a licensed stock broker just for personal interest - would buy and selling stocks be effectively free because you wouldn't be paying for brokerage because you ARE the broker? Has anyone done this?
Licence fees with the ASX, ASIC fees, money spent paying lawyer + risk analyst for compliance, backoffice, settlement, clearing. Etc

Unless you're running a multi bil fund, its not worth it. Even then, I dont see any funds take the broking path.
 

ROE

Joined
Jan 5, 2007
Posts
2,966
Reactions
16
Sorry if this is a silly question, but I couldn't find the answer anywhere online. Say if someone were to become a licensed stock broker just for personal interest - would buy and selling stocks be effectively free because you wouldn't be paying for brokerage because you ARE the broker? Has anyone done this?
Stock broker buy and sell shares on someone behalf, you still pay to access the platform to buy and sell shares..
Most large brokering house like comsec pay hundred of thousands or million to the exchange for access to the market...

in short no you cant get it free unless ASX let you use their system for FREE :D
 
Joined
Jun 24, 2013
Posts
5
Reactions
0
I think the question needs better definition.

The term 'stock broker' is far too ambiguous and comes with ASIC restrictions. A firm cannot call itself a 'Stock Broker' unless it’s an 'ASX Market Participant'.

Do you want:
1) to be licensed to advise clients and deal in financial products/securities or
2) do you wish to be able to clear trades (buy and sell securities on people’s behalf) on the ASX?

1) To become an advisor see Jesse's answer for required qualifications. Its only half the story though, once qualified you still need to be an Authorised Representative of your own AFSL or someone else’s. At this point you can advise people on financial securities (equities for instance) and you will fulfil most people’s understanding of the term stockbroker.

2) We're talking corporations here. There are large NTA requirements and huge ASIC compliance demands to be met. See SkyQuake's answer or http://www.asx.com.au/ebrochures/participant/index.html

Source: far too much exposure to the Corps Act, ASIC and AFSL’s....

Dave
 
Joined
Jul 9, 2013
Posts
5
Reactions
0
Stock broker

what education do you have to undertake to become a stockbroker in Australia? I cant find find any courses.
 
Top