How to Become a Stockbroker in Nigeria

Filed in Business, Career by on May 28, 2020 0 Comments

This article will explain how to become a Stockbroker in Nigeria. For some time now, Nigeria has been riddled with a dwindling economic situation.

One needs to explore legitimate means to stay afloat. One way of passively generating income is by investing in shares or the stock market.

Read Also: How to become a Freelancer in Nigeria

How to Become a Stockbroker in Nigeria

How to Become a Stockbroker in Nigeria – Photo Source: https://www.youtube.com

Stock is the capital raised by a company through the sales of shares. It could also mean the total shares held by an individual shareholder.

A share on the other hand is a financial instrument that shows that a person owns a part of a limited liability company.

The financial market is one that needs to be handled with utmost care; it is advisable that a shareholder does so with the aid of a stockbroker.

A stockbroker is a professional whose responsibility or job is to buy and sell stocks, shares, and other securities in companies for people.

He is a regulated professional who buys shares, stocks, and other securities in the stock exchange market on behalf of clients, companies, and organizations.

A stock market is a market for buying and selling company shares. A stockbroker can also provide financial advice to buyers and sellers and guide them to make profitable investments in the capital market.

He must be knowledgeable about the complexities and peculiarities of financial investment, banking and finance, economics, insurance, and general accounting. A stockbroker also acts as a dealer in security.

Being a stockbroker in Nigeria means that one is registered with and licensed by the necessary regulatory bodies in charge of exchange and securities. How Does one become a stockbroker in Nigeria?

Read Also: How to Become Professor in Nigeria

To become a stockbroker in Nigeria, you need some qualifications, some of which include:

1. Educational Qualification

The basic and minimum requirement for a would-be stockbroker in Nigeria is a first degree, a Higher National Diploma (HND), or the equivalent from an approved tertiary institution within or outside Nigeria.

Such a degree must be in any of the following disciplines: Accounting, Banking and Finance, Business Administration, Economics, and insurance.

2. Apply for membership and obtain a license with the Chartered Institute of Stockbrokers (CIS), Nigeria.

Registration to this institute can be done on the CIS Nigeria website.

3. Register for the CIS professional course

This programme is designed to educate potential stockbrokers on capital investment and securities.

The course is free for applicants already registered with the Chartered Institute of Stockbrokers, Nigeria. A minimum of five credit pass is required for acceptance.

Read Also: How to become SAN in Nigeria

4. To be certified as a professional national and international stockbroker, you need to register with the Certified International Investment Analyst (CIIA).

Only a registered member or student of the institute is qualified for the license.

5. Register as a Dealing Member of the Nigerian Stock Exchange

An applicant has to fulfill certain requirements to commence operations as a Dealing Member. If your application is approved, you or your firm will be awarded a Dealing Membership License.

Each Dealing Member is mandated to pay an annual fee which takes care of the following:

  1. Rented "space" on the trading floor,
  2. Maintenance of trading terminals
  3. Dealing Membership fee and
  4. Clerkship subscription

Read Also: How to become Pilot in Nigeria

6. Authorized Dealing Clerk

A dealing member requires the services of an Authorized Dealing Clerk to gain access to the trading terminals of the Nigerian Stock Exchange.

These clerks act in lieu of Dealing Members to gain access to the stock market and help investors in buying and selling shares or dealing in securities.

A stockbroker cannot execute trades on the floor of NSE without using the unique identification code assigned to him.

7. Professional Integrity

A stockbroker must possess some qualities which will enable him to trade profitably on behalf of his clients.

First, he must be hardworking and willing to undertake research to know what profitable investments to make.

Read Also: 10 Businesses With Zero Capital Demand

He must be current and skilled in making financial analysis based on the current economic trend. Good stockbroker should be trustworthy and well-informed.

Tags:

About the Author ()

I am Wisdom Enang; a Writer, Editor, and Publisher. To do businesses with us, reach us on our email or connect with me personally by clicking on Facebook.

Leave a Reply

Your email address will not be published. Required fields are marked *