A Stockbroker’s job is to manage the financial portfolios of clients, who can be people or businesses. Stockbrokers will advise their customers on which stocks to buy and which to sell, based on advice from investment experts and understanding of the regulatory framework and exchange laws.
The relevant examinations must be taken in order to become a qualified stockbroker. A minimum of three (3) years of relevant practical experience is also necessary. Typically, this experience is earned in the financial markets industry. The following companies are part of the financial markets industry:
any regulated person or business as described in Financial Markets Act, Act 19 of 2012, as amended
all exchanges and their participants;
central depositories of securities
trade repositories;
clearing houses;
participants;
authorised users;
clearing members; and
all other corporate entities participating in the creation, marketing, trading, and administration of financial market products, including collective investments and financial market security services, as assessed by the competent regulatory body on a case-by-case basis
Exams for Professional Stockbrokers
A set of exams and practical experience in the financial markets are required to become a Certified Stockbroker and bear the designation CSb(SA). The Professional Stockbroker Examinations listed below must be passed:
Legislation;
Part 1 of the Rules;
Part 2 of the Rules;
Financial Markets Taxation;
Management of Investments and Portfolios; and
Finance.
There are several ways to get into the Professional Stockbroker Board Examinations. Some of the examinations also have exemptions available. These are outlined in full in the SAIS Education Policy.
In South Africa, where can I study stockbroking?
Saifm.co.za has further information about these courses. The South African Institute of Stockbrokers is now working with the University of Johannesburg and the government to provide a legitimate, three-year university certificate for the financial markets.
What do stock brokers earn in South Africa?
R77,120 (ZAR) per year
The average compensation for an entry-level stock broker (1-3 years of experience) is R250,838. A senior level stock broker (8+ years of experience, on the other hand, makes an average compensation of R563,936.
