How to Become a Stock Broker
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.