How to Become a Stockbroker
Welcome to StockBrokerCareerHq.com, here you will find everything you need to learn how to become a stockbroker .
- Stock broker education requirements,
- Stock broker salary information ,
- Stock broker job description
- Training requirements
- Licensing and certification requirements
We have a database of best business schools in your area, and plenty of other helpful articles guiding you about how to become a stockbroker .
Congratulations on your decision to become a stockbroker. It’s one of the most sought after career in the financial field that has a great future prospect. Also, the stock broker salary numbers are quite high compared to similar professions so you’re definitely on the right path.
Learn How to Become a Stockbroker
If you’ve decided to become a stockbroker, you need to know the route to pursue your desired career. Previously, stockbrokers didn’t need to attend any college or get any degree to become a stockbroker. However today you need at least a Bachelor’s degree in a relevant subject like Finance, Economics, Accounting, Mathematics or Statistics. My suggestion is to get a Finance degree. Click here to see the top business schools in US.
Whether you are just gathering information about stock broker career, stock broker salary numbers or looking for a business school, we’ve got you covered.
A bachelor’s degree is required to enter this field. While there are no formal education requirements for stockbrokers, brokerage firms are always looking for business or finance graduates to hire as stock broker trainee. Hence it’s advisable that you pursue graduation in finance or economics or you can pursue graduation in any of the relevant subject below:
Many brokerage firms hire summer interns during their last year of college and provide full time employment to deserving candidates after their graduation. With a bachelor’s degree, you’re eligible for entry level position. So to enhance your chances of securing higher position jobs, you need to get an MBA .
Employers in the securities industry prefer candidates with MBA degree because MBA exposes students to real world business environment and they are more likely to handle pressure better than their graduate counterparts. Moreover, having an MBA is a great asset for job seekers as it means better starting salary and bonuses. Click here to see the best MBA programs in US.
Training is a vital part of the stockbroker career route. Without proper training, you won’t learn all the tools and trade of the profession. Employers provide intensive on the job training to stock broker trainees where they learn about different products and services offered by the firm. You’ll learn vital selling strategies and techniques about analyzing securities.
Employers constantly revolve trainees through all the departments so that they could learn in greater detail about the securities business. Some firms even assign trainees to attend various training seminars and conferences to broaden their horizon.
Without proper licensing, you can’t be technically called a stockbroker. In the US, a stockbroker must pass both the Series 7 and Series 63 examination in order to be licensed. Licensing requirements vary from state to state but these two are basically the bare minimum. In order to be eligible to sit for the Series 7 examination, you must be sponsored by a FINRA member firm, a self regulatory organization or an exchange.
Both Series 7 and Series 63 examination are administered by Financial Industry Regulatory Authority (FINRA). You must score at least 72% marks to pass the Series 7 or General Securities Representative Exam and need to answer at least 43 of the 60 scored questions correctly to pass the Series 63 or The Uniform Securities Agent State Law Examination. Click here to know in detail about the Series 7 licensing examination.
Although it’s not mandatory, your employer might recommend the CFA certification because it can have a positive impact on your future prospect and also enhances professional standing. You can apply for the Charter Financial Analyst (CFA) certification once you fulfill all the requirements. The requirements for this certification are that you must have a bachelor’s degree coupled with 4 years of working experience. In addition to this, you must pass three exams that constitute questions from subjects like accounting, economics, securities analysis, financial markets and instruments, corporate finance, asset valuation and portfolio management.
Being a stockbroker is all about successfully selling a financial product to clients so besides having all the educational qualifications and licensing, you need to have a certain type of personality suited to attract clients’ money. Basically, you need to have in yourself the following traits and characters.
- The ability to deal with various type of clients and persuade them to buy the securities products offered by the firm
- Selling skills, customer handling skills and a towering personality to make clients feel comfortable during financial consultation
- Excellent communication and interactive skills that’s vital when consulting with the client
- Always eager to connect with new clients and form a solid client base by making cold sales calls to various types of people who may or may not be expecting a call
- Flexibility to work in a group and the capability to work independently as and when required
- Exude honesty, reliability, transparency and patience when dealing with clients
- The ability to analyze risk and suggest necessary steps to reduce clients’ inherent risk
- Courage to take split second decisions when large sum of money is at stake
- The ability to withstand high pressured environments and cope with the situation rationally
- Analytical skills to find out profitability potential in future deals along with mathematical prowess to analyze vital financial data
What Are the Career Advancement Opportunities for Stockbrokers?
As a stockbroker, you are presented with many career advancement opportunities. It’s your performance as a sales representative that determines your future prospect. You have a higher chance of getting promoted if you can accumulate large number of accounts. As a beginner, you’ll start with servicing individual investors’ accounts but gradually you’ll be able to serve large institutional investors’ accounts like banks, retirement funds and other financial institutions.
Once you show that you’ve the skills and capabilities to succeed as a stockbroker, you’ll be promoted as a portfolio manager. Your employer might take a few tests before awarding you a promotion. With time and experience, you have the chance to get promoted as a branch office manager. With that position, you’ll be supervising other sales agents along with looking after your own clients.
A few lucky and hard working brokers will be awarded partnership opportunities in the firm or get promoted to top management positions. The sky is the limit as far as career advancement opportunities are concerned for stockbrokers.
Future Prospect For Stockbrokers
According to the United States Bureau of Labor Statistics (BLS), the job in this sector is expected to grow by 15% between 2010 and 2020 meaning the job outlook seems promising. The main reason why there is so much demand for stockbrokers is due to pensions. Since people are losing faith in the older financial system, they are looking to replace their current pension plans with other alternative options like Individual Retirement Accounts and 401Ks. For doing so, they have to take help of stockbrokers.
Although the financial crisis had affected the average stock broker salary, it has gained its momentum back again. However the entry in this field isn’t easy as there is intense competition among prospective stockbrokers. There are far more applicants than there are vacancies, so you need to give your best if you want to learn how become a stockbroker.Source: www.stockbrokercareerhq.com