How To Start Working In The Stock Market In 6 Steps

Updated 9 July 2022

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A stock market is a public market that issues, buys and sells stocks that trade over-the-counter or on a stock exchange. With the right set of skills and experience, working in the stock market can be a lucrative career option. If you have an interest in finance and want to work in the stock market, it might be beneficial to understand everything about stock market careers. In this article, we understand how to start working in the stock market and explore various job roles, along with the salary and duties of each job role.

How to start working in the stock market

While every stock market job role requires a different qualification, you require specific educational qualifications to start a career in trading stocks and equities. To understand how to start working in the stock market, follow these six steps:

1. Complete your education

Earning a bachelor's degree in finance, accounting or related areas can help you start a career in trading. Some common bachelor's degrees include Bachelor of Commerce (B.Com) or Bachelor of Business Administration (BBA). Common coursework that is useful includes mathematics, statistics and quantitative analysis. Some companies prefer hiring candidates who come from a management background. A master's degree in business, finance or related areas can help you excel in the stock market.

2. Pursue specialised courses in the stock market

Pursuing specialised courses in the stock market can help you get a desirable job. Often, these specialised courses improve your skill set and help you learn the skills you require to excel in the financial trading world. Some certifications and courses to pursue are:

Diploma in financial and stock markets
Diploma in research analyst
Advance courses in SEBI and NISM XV Series
Equity dealer certificate course
Technical analysis courses in the stock market
Fundamental analysis course in stock market
Advance diploma in financial markets

Many brokering firms prefer candidates with National Institute of Securities Markets (NISM) certification. The addition of certification courses helps build your resume and increases your job prospects.

3. Apply for SEBI certification

Almost every career in the stock market requires a Securities and Exchange Board of India (SEBI). After completing your education, apply for the Certificate of Registration (CoR) from SEBI. For earning a certification, it is essential to send a new membership application to the National Stock Exchange of India (NSE). After submitting relevant papers to SEBI, wait for the acceptance letter to receive the CoR. You can then trade on behalf of your clients.

4. Get a licence

The Financial Industry Regulatory Authority (FIRA) requires professionals selling securities products to get a Series 7 licence. Depending on the state in which you want to work, the licence requirement may vary. Some states require a Series 63 licence, while others require a Series 66 licence. A Series 63 licence allows financial representatives and professionals to sell securities in a particular state. For earning a licence, it is essential to qualify for relevant examinations.

5. Further your studies

Often, to increase their earning potential and enhance their skill set, many candidates pursue master's degrees in finance or related areas. You can even pursue globally recognised courses like chartered financial analyst (CFA) and financial risk manager (FRM). A CFA certification requires a candidate with a bachelor's degree but having relevant experience is not mandatory. In contrast, the FRM certification requires candidates to have at least two years of experience in a financial risk portfolio. You can choose the course or certification based on your preference.

6. Create a resume and apply for relevant jobs

After completing your education and gaining relevant skills and qualifications, you can create a resume outlining your relevant information. Focus on providing technical skills and certifications you completed. Providing information about your higher studies can help you get hired for a desirable job. Also, review the job description, pick out keywords and include them on your resume. This makes your resume applicant tracking system (ATS) compliant. After creating your resume, upload your resume on different job portals and apply to relevant jobs.

Job roles in the stock market

Some typical job roles to pursue in the stock market are:

1. Stockbroker

National average salary: ₹38,396 per month

Primary duties: A stockbroker is a professional who buys and sells securities in different stock exchanges on the investor's behalf. They handle investment transactions for individuals and institutional institutions. These professionals receive payment through commission in the form of a percentage of the value of each transaction. A stockbroker advises their clients on the right time to buy and sell. A significant part of their workday involves finding the best prices for stocks.

Additional duties include providing accurate investment advice, evaluating financial reports, updating clients regarding the status of their portfolio and making changes in the investment strategy depending upon the market condition.

2. Research analyst

National average salary: ₹17,883 per month

Primary duties: Research analysts are stock market professionals who gather, interpret, analyse and prepare research reports on stocks, securities and assets. Using their knowledge of the consumer market, these professionals analyse information related to stocks. A part of their workday involves forecasting the performance of the company's stocks and commodities. They also use statistical and financial data modelling techniques to provide the best research report.

Also, a research analyst creates charts, graphs and presentations based on their research. This helps in driving improvement in business processes. They also provide advice and make recommendations to improve business processes and workflows.

3. Portfolio manager

National average salary: ₹4,48,918 per year

Primary duties: Portfolio managers are investment decision-makers responsible for developing and implementing investment strategies for institutional investors and individuals. They build and manage investment portfolios. To meet clients' goals and constraints, these professionals manage portfolios and decide what to buy and sell to gain profits. They determine a client's appropriate level of risk based on the client's time horizon, market condition and return expectations. For achieving a client's goal, these managers may interview to understand a client's investment requirements.

Also, a part of their workday involves being up-to-date with trade and investment news. Some typical duties involve understanding the global and domestic market conditions for making investment decisions.

4. Financial advisor

National average salary: ₹22,053 per month

Primary duties: A financial advisor is a financial planner who assesses clients' finances and helps them achieve financial goals. These professionals make investment decisions for clients and make investments based on their financial needs. They provide advice regarding estate planning, college savings, investment, mortgages and taxes. A part of their job role involves explaining different financial services that a client can choose from.

Some typical duties include monitoring clients' financial situations, buying and selling financial products and reviewing the types of accounts a customer can open to achieve their goals. Often, financial advisors teach clients how to save money and might provide portfolio management services.

5. Stock trader

National average salary: ₹48,370 per month

Primary duties: A stock trader is a professional who purchases and sells stocks for a client or themselves. Many stock traders may buy and sell bonds and other financial instruments. Often, they buy and sell short-term trades lasting just a few seconds or longer traders with a larger holding period. These professionals use technical, fundamental and environmental research to research in-depth about stocks they want to buy. They earn income by gaining profits from selling and purchasing stocks and securities.

Becoming a stock trader requires an investment of capital and time and an in-depth ability to research markets. Usually, stock traders work in their own firm or work in a bank and spend most of their trading on the stock market exchange floor. A part of their job role involves monitoring the performance of financial markets and individual securities.

6. Stock market analyst

National average salary: ₹36,259 per month

Primary duties: A stock market analyst is a professional who analyses a company's investment, tracks investment data and provides investment recommendations to clients. They utilise data to predict the earning and gains of a company. When working as a stock market analyst, these professionals can work as buy-side analysts or sell-side analysts.

Buy-side analyst primarily works with fund managers at various financial firms and mutual fund brokers. In contrast, sell-side analysts are professionals who work for large investment banks. A sell-side analyst builds models that predict and project's a company's financial results. They provide a research report containing the target price, financial estimate and stock's recommended performance.

Please note that none of the companies mentioned in this article are affiliated with Indeed.

Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.

Salary figures reflect data listed on the quoted websites at the time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.