Stock brokers are the only people who have the authority to purchase and sell securities such as bonds and stocks. They must build up a large clientele base and analyze their clients’ financial situations in order to determine the best kind of security will be the best and most beneficial for their lifestyles. They get paid a base salary, plus commission on how many securities they sell. Those who are in this business need to be good salespeople and be able to close deals. They need to be passionate about sales and have the right knowledge and skills in order to do their jobs correctly.

Average Salary

According to Payscale.com, salaries for stockbrokers range from $36,000 to upwards of $100,000. There are many factors that affect the outcome of a stock broker’s salary, such as experience in the field, how many sales were made, and the geographic location of the brokerage firm.

Experience

Of course when a person has been working in a field for a long period of time, his salary is going to be higher than someone who has just started within the field. A broker who has been in the field for about 20 years will be earning on the higher end of the pay scale, whereas a college graduate with very little experience will be on the lower side. As the years and experience build up, so will the salary.

Selling Ability

Stock brokers work in a sales industry; therefore the number of securities that are sold is important to create a large salary. When they sell securities, they make a commission. The more securities they sell, they make more money from the commissions. In addition, when they sell a lot of securities, their employers are more likely to pay them more because they have showed that they have excellent sales abilities.

Location

Geographic location is extremely important to consider when looking at a stock broker’s salary. The most popular location for stock brokers is in New York because of Wall Street. However, brokerage firms are available in all states. In New York, the cost of living is higher and the competition is fierce and very intense, therefore stock brokers in New York make more than brokers in other states and cities.

Job Description

Stock brokers make quite an impressive income; they get paid a base salary plus commission from their firm for each client they bring in. With such great compensation, it would be easy to understand why it is such a great career, in addition to how to become a stock broker. Brokers are the only people who have the authority to buy, sell, and trade securities such as stocks, bonds and funds. They provide the services on behalf of their clients; therefore having a large client base is necessary. Stock brokers spend a lot of time on the telephone and also e-mailing in order to procure their clients.

Education

Becoming a stock broker is not an easy task. It starts with education, which is the foundation to all well-paying careers. In order for stock brokerage firms to see you as a valuable asset, you should have a bachelor’s degree in a specialization such as finance or economics. These majors will show that you have experience with handling money and understanding the workings of the economy.

Required Exam

Passing the Series 7 exam is required before being able to work within the industry. It is a general comprehensive exam that involves answering 250 questions about trading all types of securities. It is fairly expensive and costs $265, so those who are interested in taking it must be willing to pay the fee. Although there are no prerequisites that need to be fulfilled before taking the exam, there is an age requirement; you need to be at least 18 years of age.

Investment Portfolio

It is also helpful to have an investment portfolio. An investment portfolio to a stock broker is comparable to an artists’ portfolio; it showcases their best work and makes them desirable candidates for future employers. An investment portfolio includes financial assets such as stocks and bonds. It is important to have because you can use it to track investments and prove to future employers that you’ll know how to trade securities on the behalf of your clients.

Have the Right Skills

You will get hired for the job if your basic skills are a good match-up with the brokerage firm and also with the industry. Those who are good salespeople and know how to properly acquire clients and can also close sales are ideal candidates for these positions. Procuring clients is one of the most important aspects of the job, in addition to analyzing clients’ financial statements and making strategic recommendations. Knowing every part about the stock market is imperative in order to succeed in this career path. Without having industry knowledge or experience, clients will not consider you to be competent and will not trust you with their money and investments.

We’ve all heard characters in movies and television talk about their “brokers,” but does anyone really know what a broker is? Or, better yet, what a stock broker does? Stock brokers are involved in the stock market, which makes since given their job title. In order to securely and smoothly sell and trade financial securities such as stocks, bonds, and funds, there needs to be a middle-man between the buyer and the seller. The trading of these securities is absolutely imperative in order for the stock market to thrive and keep the economy alive. This in-between person is called a stock broker, and has various job responsibilities to take care of.

Buying and Selling Securities

Stock brokers are the only people who are authorized to purchase, sell, and trade securities. Therefore, they acquire clients and charge them a fee for the services that they receive. Stock brokers analyze their clients’ financial situations to determine the securities that are best fit for their lifestyles. Once a client’s securities have been agreed upon by the broker and the client, the broker sends the transaction to the security exchange department so that the transaction can be finalized.

Procuring Clients

The most important aspect of a stock broker’s business is having a solid client base. Stock brokers work for brokerage firms, and the firms pay the brokers a commission for each client that they have. Brokers thus spend a good majority of their days on the phone with clients and pursuing future clients. Their salaries are comprised of a base salary as well as commission, so having a large client base is of particular importance. Some of them even teach financial education classes in hopes of expanding their client base.

Analyzing the Market

One of the most important job duties as a stock broker is analyzing the market and knowing all of the trends. Stock brokers must know every facet of the industry because one bad investment could cost their client thousands of dollars. In addition, the broker must be able to analyze their clients’ financials properly and determine the type of security he or she should invest in.

Being Available

Another important job responsibility is being available to their clients. Most of their clients work day jobs and can only contact their broker after hours. This means that brokers need to be available for hours that are atypical for a workweek.

The stock market is a very risky and but also very lucrative industry to be a part of. It market involves the buying and selling of securities (stocks, bonds, and funds) between companies and individuals. Stock markets are controlled by stock brokers, which are people who invest money in the stock market on the behalf of their clients.

Stock brokers are the only people who have authorization to invest money in the stock market; therefore, businesses and individuals must go through a stock broker if they would like to purchase or sell stock in the market. Stock brokers work for companies called brokerage houses. There is irony in the fact that the job title involves the word “broke,” and they make their living by handling their clients’ finances and assets.

Stock brokers charge a hefty fee (which varies by brokerage firm) to their clients to conduct this service for them. Choosing stock is more than just about picking companies at random; stock brokers must first analyze the market as well as the client’s financial capabilities and lifestyle to determine the best stock for them to invest in. Once the needs of the client have been determined and the type of stock is agreed upon by the client and the broker, the brokers sends the order to the securities exchange so that the transaction can be completed.

These brokers spend most of their days procuring clients since their incomes rely a lot on the commission and fees that the clients pay for their services. They spend many hours on the phone with clients and potential clients, and some brokers even teach financial education classes in order to try to grow their customer base. They work mostly during the day, but since most of their clients also work during the day, they also can be reached at night.

The first and most crucial aspect of the stock broker industry is having a firm understanding of how the stock market works. Not only that, but there should be a very strong interest in the market and also learning about the market.  Before becoming a successful and trustworthy broker, he must know all facets of the industry. He also needs to be able to analyze his clients’ financials to give them the best advice when choosing which stocks to invest in.