What is a stockbroker?

A career in the world of finance can be exciting and dynamic, as well as very lucrative. Within the sector, the stockbroker stands out as a key figure, as they connect investors with the stock market. But what is a stockbroker? Do you want to know exactly what the role entails?

In this post, we will look at the duties of this position, the types of brokers that exist and the training required to work in this field.

If you are looking to specialise in this area, you can choose to study the Master of Business Economics at Universidad Europea, or one of our many masters in the area of business and technology such as the MBA in Valencia.

Definition of a stockbroker

A stockbroker is a professional who acts as an intermediary between buyers and sellers in the financial markets. Their main objective is to advise clients on the purchase and sale of shares, bonds and other financial instruments, to maximise the return on their investments.

These experts must be aware of the latest market fluctuations and keep an eye on global economic trends, as this is the only way they can offer informed and strategic recommendations.

In addition, the job of a stockbroker involves making quick and accurate decisions in an extremely changing environment, so it is necessary to be resilient and handle pressure well.

Main functions of a stockbroker

In their day-to-day work, stockbrokers perform a wide variety of functions, but the most important are as follows:

• Financial advice: their main task is to guide clients in their investment decisions, helping them to achieve their financial objectives.
• Portfolio management: they must design and supervise personalised investment strategies adapted to the needs and portfolios of each client.
• Market analysis: to identify the most profitable opportunities, they must continuously study the latest trends and know how to analyse financial data.
• Intermediation: in the process of buying and selling securities, they act as an intermediary and are the ones who execute the clients' decisions.

Brokers also need to be familiar with current legislation and regulatory procedures affecting the markets, thus ensuring that transactions are safe and transparent.

Types of stockbroker

Not all stockbrokers perform the same tasks. Depending on the clients they work with, these experts can be classified as follows:

1. Institutional brokers: they represent large companies, banks or investment funds, so they usually manage high-value transactions.
2. Individual brokers: they work directly with small individual investors, who are looking to build or diversify their wealth.
3. Specialist brokers: focus on a specific sector or type of financial asset, such as commodities, cryptocurrencies or technology stocks.
4. Discount brokers: offer basic services at lower rates, usually through digital platforms. They do not provide advice but facilitate the execution of buy and sell orders to investors who prefer to make their own decisions.

Why choose a career as a stockbroker

As well as a potentially high salary, a career as a stockbroker offers many other advantages. It is a very stimulating profession for those who enjoy analysing data and making strategic decisions, and the risk involved is a plus point for many people. After all, the volatility of the markets and the need to react quickly to unexpected changes make every day a unique experience.

Another attractive aspect is the variety of sectors and clients you can work with, from large corporations to small individual investors, which guarantees continuous learning and constant challenges. The most ambitious professionals will be able to advance from entry-level roles to leadership positions in investment firms, banks or financial consultancies.

What do you have to study to be a stockbroker?

To become a stockbroker, it is essential to have a solid academic background in finance, economics and administration. The masters programmes at Universidad Europea, for example, the master in Finacial Management, provide a comprehensive knowledge base for making the leap into the stock market, while programmes like the MBA in Madrid help to provide a more complete and versatile profile.

Keep in mind that to become a stockbroker, a professional must acquire key competencies such as the following:

• Analytical capacity to interpret financial data and make forecasts.
• Advanced knowledge of financial mathematics, essential for evaluating complex investments.
• Negotiation skills to close advantageous deals with clients and suppliers.
• Proficiency in market-related technological tools, such as trading platforms and analysis software.

In some countries or companies, it is also necessary to obtain specific certifications such as a stockbroker's licence or the Chartered Financial Analyst (CFA) to practise.

Among the different careers in business administration and management, the profession of stockbroker stands out as being as complex and challenging as it is rewarding and enriching.

If you think the stock market is your thing, quality training is the first step to standing out in such a competitive environment. At Universidad Europea you can find a wide range of business and technology degrees as well as masters that will prepare you to achieve success in this exciting world.