How to Become a Securities Broker in Bangladesh: Degree & Salaries

Become a Securities Broker in Bangladesh: Degree & Salaries

Become a Securities Broker in Bangladesh

When you’re looking for the career of a securities broker in Bangladesh you’ll understate that buying stocks isn’t like buying groceries or books. The average person can’t buy stocks simply by handing money to a cashier as there are no stores on every corner where stocks are sold.

While you’re in the stock market business, you’ll find there are two stock exchanges in Bangladesh, Dhaka Stock Exchange, and Chittagong Stock Exchange.

They usually need a middleman and this middleman is called a stockbroker for the average person to buy stocks via these exchanges.

It’s often carried out electronically by a discount brokerage firm, such as Fidelity, E-Trade of these days for the actual execution of stock trades for individual investors. However, those who are large institutional investors, they are still handled by human brokers.

An Overview of the Stock Market & Securities Broker in Bangladesh

As it acts as an intermediary between surplus units and deficit units of the economy and facilitates savings into investments, the securities broker in Bangladesh plays various roles in an economy.

The stock market ensures optimum allocation of resources by providing liquidity of these investments.

As a vehicle for financing long-term investment, the stock market in Bangladesh is not yet to play its potential role.

But, by a drastic downswing has been successfully trying to overcome, the hangover of an unpalatable historical past which saw a dramatic plunge in the second half of 1996 and starting of 20 II only to be followed.

The main reason for losing public confidence from the stock market is a number of actions from the regulatory bodies.

Before demand for shares had exceeded supply it was available there in the market.

Several weeks back, it resulted in over-heating of the market. It happened during the last several months instead of overheating of the market did not happen in one day or one week or one month.

Although “Shortage of liquidity” has caused the present market crash, with a supply of securities far outstripping demand for the same, such a shortage of liquidity is the effect of “over-regulation” by Securities and Exchange Commission (SEC) along with the stock market regulator and Bangladesh Bank (BB). It the right time the monetary watchdog due to their not regulates in the right way.

Degree & Salaries/ Earnings of a Securities Broker in Bangladesh

Although most investment brokers have at least a bachelor’s degree in business, accounting, finance, marketing, or economics, a prospective securities broker in Bangladesh should look for programs that provide courses or concentrations specializing in financial and investment planning.

These courses not only cover portfolio planning and economic theory but tax treatments, client communication, Series 7 exam preparation, risk analysis, and the use of the financial software. And if you talk about the salaries or earnings of a broker then it varies widely.

When you’re an expert with a vast knowledge you can earn up to $187,200 where the lowest ten percent of the group earned less than $32,030 at their entry level.

Steps to Become a Securities Broker in Bangladesh

If you want to become a securities broker in Bangladesh then you should be very well-versed in the markets and can offer advice on the best time to buy and sell.

As it’s a job to find clients for the best possible price, in exchange for his executing the trade and offering advice.

This way a stockbroker gets a commission for his work, which is in the form of a flat fee or percentage of the value of the transaction.

Although in the age of online trading, there is less demand for human stockbrokers, there may be instances in which an investor wishes to work directly with someone else to execute a stock trade. Now, let’s know how to become a securities broker in Bangladesh.

Read More: Financial Planner in Bangladesh: Degree & Salaries

First Step: Training Requirements

Those who have at least a bachelor’s degree, preferably in business administration, they are preferred to be employed as stockbrokers.

As many colleges offer bachelor’s degrees in business administration, they are pursuing this degree with an emphasis or concentration in finance can be good preparation for a career as a stockbroker.

When they then take courses related to their concentration, these courses may cover topics. While completing their degree, some students take on internships with brokerages.

And it will help them determine their career path and make them more attractive candidates for jobs after graduation while completing an internship can give students valuable experience.

Apart from taking general education courses in English, mathematics, and sciences, you also need to be well trained on the foundational business administration courses like-

  • Organizational behavior
  • Information systems
  • Legal issues in business
  • Economics
  • Accounting
  • Marketing
  • Management

Second Step: Complete Certification

By pursuing a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) status, aspiring investment brokers can increase their employment and career advancement prospects. As CFP is a multi-step process, it requires applicants to have a bachelor’s degree.

Apart from these, you have to pass an exam and gain at least three years of full-time experience in financial planning.

Formerly known as the Association for Investment Management and Research, the CFA program is a graduate level, self-study option accredited by the CFA Institute.

Those who have a bachelor’s degree and at least four years of finance-related experience, this program was specifically designed to provide specialized skills in investment strategy and portfolio management to them.

Third Step 4: Select a Company

In terms of the company’s training benefits, investment brokers should carefully consider a brokerage firm’s starting salary.

Although a firm with a smaller starting salary, with more training options, such as financing employee MBA programs, can offer faster stockbroker career advancement.

They should enjoy sizable commissions and bonuses as investment brokers build their client bases.

Fourth Step: Get an Advanced Degree

It can provide an edge in this competitive profession while earning an advanced degree. This is because a prospective securities broker in Bangladesh should consider a Master of Business Administration or a master’s program in a finance-related field.

Prospective investment brokers should consider an MBA program that has curriculum developed in conjunction with the Certified Financial Analyst Institute to get the most from an MBA program.

Also, in order to buy and sell stocks, they must hold certain securities licenses. Stockbrokers must pass specific exams administered to register as a representative of their brokerage.