Here in the article we will discuss about, is the NISM 8 certificate worth it? Will you get any job in financial market after getting this certificate? If you get the job of equity dealer then what next? Reality of equity dealer job.
NISM 8 certificate worth it ?
I will not tell you about what is NISM 8 certificate, you can search details on Google, here i would like to tell you, is NISM 8 certificate is enough to get you a job in financial market.
To get a job in any broking firm specially in dealing with equity and derivatives you need the NISM 8 certificate, this is the rule set by SEBI.
And the data says the passing ratio of NISM 8 exam is only 50% in our country. So you can imagine it is not a cup of tea. It is a ough exam especially when you are not coming from finance background. Most of the professionals take twice to thrice time to clear this exam.
Jobs after getting NISM 8 Certificate
When you pass NISM 8 exam, then you can get the job as a Equity dealer/Trader in broking firm. What that mean, as a equity dealer your work would be taking trade (buying and selling shares) on behalf of client and generate brokerage for your brokerage firm. You would think it’s a simple task you only need to buy and sell the share on behalf of client.
What is the reality of Equity dealer Job
When you will go to your brokerage firm your first task would be client acquisition, so how will you find client for them?
- Definitely you will find your relatives and friends and to fulfil your target you will open their demat account.
- Second part is to generate brokerage, now to generate brokerage around 7 to 8 times of your salary you will need to frequently buy and sell shares in their account, either they make profit or not but you need to generate brokerage for your firm. This is the hard truth of equity dealer job.
- Now third part is suppose if they provide you some of the list of their dormant clients (who have already left that brokerage firm for any reason either because of their high losses our brokerage charges or are inactive).
Now your work as a equity dealer would be call those client and in any ways, you need to reactivate them, so that again your firm started to generate brokerage for them.
Isn’t it look like a job in a call center when an operator call a client and try to sell credit card ?
Now you can imagine you have passed the NISM 8 certificate exam with so much effort and you thought you would get a good job, but here you trap in a brokerage generating module.
Now time have changed and around 80% of investors or trader buy and sell their shares by their self, therefore no need of equity dealer/trader to buy and sell their shares. Therefore now, Equity dealer main job is to acquire maximum numbers of clients and opening demat account.
Few years ago traditional brokerage firm have the control over share market and they used to charge high brokerage, later as the discount broker comes in existence, they snapped maximum market share from them, and now their brokerage yield decreased, therefore they are forcing their employee to generate maximum brokerage and this is the reality.
If you think you have the skill and you can pitch a client to open their demat account with your firm, to generate brokerage. Then you can go for the job of equity dealer. If you are not, then find other way.
This is the end of the post “ Is NISM 8 certificate (Equity Derivative) worth it- Reality of Equity dealer Job” hope we provide some value for all the professionals who are looking for the job of equity dealer.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at firstname.lastname@example.org.