Broker

Profession broker for Russia is quite new. Considering that the first stock exchanges appeared in our country about eight years ago, the first stock exchange employees had to learn almost everything independently, in a word, from their mistakes. In the early 90s, the number of various exchanges was rapidly increasing, new directions in the economy attracted a huge number of people, both professionals and beginners. If you recall the years 1992-93, then almost every student group could meet people who either worked as brokers or had anything to do with work on the stock exchange. Later, the number of trading platforms began to decline as rapidly as it initially grew. They changed their orientation from the commodity market to the market of financial instruments. Information on the dollar exchange rate on the MICEX has become as familiar as the weather forecast for tomorrow. During this period, the profession of a broker as a professional intermediary working in the financial market began to take shape.

Along with the currency exchange, stock and futures exchanges were actively developing. The debt market grew rapidly. To work in the Russian financial system required more and more high-level professionals. There was a large number of schools and courses that train brokers in various fields. Also emerged a system of state licensing brokering. For example, a broker cannot work in the stock market without a certificate of the Federal Commission for the Securities Market. To obtain this certificate, you must pass a fairly difficult exam in economic disciplines. Brokers working on the currency and futures exchanges, also undergo training and receive the appropriate certificates. Brokers usually study the stock exchange itself. But even the presence of all certificates does not guarantee employment.

The broker’s job is mainly in that he directly represents the interests of clients in exchange trades, i.e. on their instructions, he places orders for the purchase or sale of a financial instrument (debt, stocks, futures contracts, currency) at a certain price and makes deals with other brokers or with the exchange, depending on the type of instrument and the trading system. Most transactions are made to the client’s account, and the broker may not have a direct financial interest in the price at which these transactions are made. But in a real situation (especially in Russia) the relationship between the broker and the client can take shape in different ways, and if the broker is interested, there is a basis for various abuses and financial frauds. For example, in countries with developed economies there are numerous court trials of brokers who managed to deceive their clients for many millions of dollars.

There developed a serious system of control over the activities of brokerage firms and stock brokers. Many clients themselves, like brokers, participate in exchange trading and make transactions directly to their account. Usually such brokers are called traders. But in Russian economic practice, the word trader often means the same as a broker. So, in the stock market, people who directly conclude transactions with shares are called traders.

In general, the orientation of the Russian stock market on foreign clients left a definite imprint on the requirements for this profession. As a rule, in addition to good reaction, memory and ability to quickly navigate the situation on the market, one of the main requirements is a good knowledge of foreign languages. It does not hurt and a good knowledge of mathematical disciplines. Broker is also a good idea to have strong nerves, endurance and the ability to communicate with people. This is especially useful in controversial situations that often arise on the exchange. So, many clients are ready to blame the broker in the first place for their mistakes, and this often leads to serious conflicts. Therefore, many companies are trying to regulate the process of communication between brokers and clients as clearly as possible.

Now the main Russian stock exchanges introduced an electronic trading system, and brokers enter their orders into the trading system from a computer. Although earlier, at MTB there were “trades by voice”, where brokers loudly shouted their bids, and the operator entered them into the trading system. At the London Futures Exchange, trading is still conducted without the use of computers, and brokers communicate in sign language, making transactions directly with each other. A similar system exists on the Chicago Mercantile Exchange. The “voice” trading system attracts primarily by its openness, the ability to control the correctness of the execution of applications and the absence of various kinds of frauds.

It is worth mentioning that all the major Russian stock exchanges at one time or another have been ruined or have experienced financial difficulties, but despite this, professionals have appeared in the economy who know the market situation and are able to provide brokerage services at a high level.

A broker can work on both a fixed salary and a percentage of transactions. Before the crisis, the broker's fixed salary ranged from $ 500 to $ 2000