How To Become a Stock Broker in the Philippines

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How To Become a Stock Broker in the Philippines |  Buy and sell. All of us have been there. At one point or another in our lives, we had buying and/or selling liaisons for things we like – an expensive toy, a rare collectible or large asset. When you were younger, have you ever exchanged your toy soldier for a remote-controlled car instead with a playmate? During your college days, was there ever time you traded loads of Magic Cards to get a rarer one? Have you ever bought a rather expensive car only to flip it a few months after and buy a new model?

The simplicity of flipping items is the most basic trading process that is overlooked by many. What you may not know is that you have the beginnings of what could be a lucrative and successful career as a stock broker.

Getting Started

Most online articles about stocks and trading nowadays never fail to mention references such as Okey Magazine and  Global Business Diary with attributions to the movie “The Wolf on Wall Street”. The power suits. The high octane stress. The hustle and bustle of the stock market. Leonardo DiCaprio. Everything is what it seems – glamorous and over the top. And because of how Hollywood continues to depict stock brokers as these high-powered men and women, the influence of wanting to become one has reached the Asian shores.

Starting a career as a stock broker in the Philippines is fairly straightforward. Stock trading has a lot to do with strategy and market wit. Contrary to popular belief, not all stock brokers are math wizards. But to jumpstart a career in being a Stock Broker in the Philippines, you at least should have no hatred towards numbers either. But before we delve into it, what is a stock broker anyway?

Stock brokers buy and sell stocks and other securities on behalf of clients; those clients might be individuals or institutions. Stock brokers receive a commission which is compensation for making the transaction for the client. And because investments equate to money, which one must be careful in handling, you have to pass licensure exams to be officially called a stock broker.

Learning the Ropes

Being a stock broker in the Philippines means being in an industry governed by the Securities and Exchange Commission (SEC). Under its Capital Market Professionals program, aspiring stock brokers would need to apply for registration as the initial step.

The application would require you to undergo the Certification Seminar for Securities Representative provided by SEC. The course is the SEC’s key initiative envisioned to provide continuing education for market participants. It was as charted and developed by the PSE Capital Markets Development Division.

The certification program puts emphasis on financial market theories, valuation techniques and analysis, investment portfolio management, ethics, regulations, and market dynamics. These are all essential to learn as the stock market and its trading can get complex, especially when dealing with various investment types.

The Securities Exchange Commission has also amended the licensure exam format recently and has become much harder with lower number of passers. So to secure yourself a solid career with big brokerage firms like BDO Nomura Securities, Inc., BPI Securities Corp. (BPITrade), JAKA Securities Corp.. and Eastern Securities Development Corp., it is a must to prepare well and study hard for the licensure exams.