The stock market is where stock brokers trade. This is the place where many enterprises, investors, or entrepreneurs regardless of their spending power trade and deal in stocks. The activity is governed to marginalize and scale profits. It is an intriguing market for traders as there is no physical exchange of goods, rather bonds, stocks, or share often referred to as commodities are purchased or sold. Before analyzing the nitty-gritty of stock trading, let’s understand who a stock trader or broker is and their relevance in the stock market.
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.
So, here is how you can become a stockbroker in Nigeria.
Educational Qualification
To become a stockbroker, one must have a minimum qualification of undergraduate, HND, or any similar qualification. This can be acquired from any polytechnic institution or university in Nigeria. Ideally, the broker must have a diploma or a degree in accounts, business administration, finance, banking, or insurance.
Register Yourself on the CIS Website
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
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
A stockbroker needs to be extremely hardworking, dedicated, and patient. Your ability to work hard will help you land potential investors, close high-paying deals, and sustain yourself in the competitive market.
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.