The first picture that comes to mind when one thinks of a
stock broker or of the stock market in general is high frequency numbers, big
screens, a lot screaming and the use of technology at its peak. Stock Brokers
have to be good at their analytical skills, reasoning and decision making
abilities but interpersonal skills are what actually make them stand apart from
one another. Finance and Mathematics can be learned at school and college but
these interpersonal skills take practice and determination to develop. And the
most important of these interpersonal skills is communication. Whether a broker
pitch’s a stock idea or security investment plan, he/she needs to know how get
their point across successfully and win the confidence and trust of the client.
To achieve this their communication skills have to be eloquent.
The two main skills that are very important to become a
successful stock broker are: -
- Ability to Sell
- Ability to explain to clients’ concepts and ideas that may be hard to grasp.
The
ability to sell, whether it is just a simple idea or a complex investment plan,
is very important for a stock broker. An analyst or a broker might come up with
a brilliant stock option or an investment idea but what good is that idea or
stock option if the broker cannot put it into words and express its benefits. The
ability to effectively communicate with other brokers and clients is really
important.
The
ability to explain fundamental ideas and concepts to clients is very important
for a stock broker. A lot of times clients have difficulties understanding some
ideas and other fundamental concepts of the stock market and this tends to make
them feel uncomfortable. Especially because their money is involved and they do
not want to risk it till the time they understand everything clearly and are
confident enough with the idea of investing their money. So a broker has to do everything
possible to clear all the ideas and concepts for the clients and win their
confidence and trust.
Communication
skills both verbal and written are important to become a successful stock
broker. Written communications such as e-mails, memos etc. to clients and other
brokers is very essential. A broker has to make sure that the written material
is clear and precise so that any form of misunderstanding can be avoided. At the
same time this written material is what helps the broker win the clients and
other colleagues trust. However verbal communication is what is of prime focus.
Verbal communications such as presentations, seminars and even conversations in
person or over a phone are really essential. In an interview with Ms. Sehgal, a
senior manager at ADIB securities located in Dubai, UAE, she said “I have been
in this field of work for the past 18 years and the reason why I have been
consistent is because of my communicative skills. We make presentations for
different clients almost every day of the year, and it is through these
presentations that I am able to ensure enough faith within the clients that
they can trust me with their money” (Sehgal, Seema, personal interview)
All
these communicative skills entwine together in the end to build a strong
clientele, which is any broker’s final, most important goal. Once a client has
enough faith and trust in a broker, the client can further suggest that broker
to other acquaintances. And during seminars and presentations, if the broker
gets the points across successfully and impresses the audience, the broker can
gain a lot of clients.
Although
when Brokerage firms hire brokers and analyst they give them some prior
training, I would recommend that before you even apply for a job, you should do
whatever possible to learn how to effectively communicate. The Stock Market
being such a cut throat place, if you expect to learn on the job that might not
be the wisest idea because of the nature of the job. Everything is fast moving
in the stock market and if you are not at the top of your game at all times,
you might be asked to leave. I would recommend that you go for these interpersonal
skill development seminars and programs, or even take some coaching to
communicate effectively.
As
I said before interpersonal skills are the key to becoming a successful stock
broker. At the end of the day a broker should be able pick up the phone, dial a
random number and make an ardent pitch. The ability to effectively communicate
with and comprehend the clients and other colleagues is not only important to a
broker, but it should be a central part of his/her character. 