How do I become a stock broker with no experience?
To become a stockbroker, obtain a bachelor's degree in business, economics, finance, accounting or other related areas, complete an internship, gain sponsorship from a Financial Industry Regulatory Authority (FINRA) firm and pass the licensing General Securities Representative Exam.
Stockbrokerage is more than just market analysis—in fact, it can be a fairly social and exciting job. Most firms require applicants to have a bachelor's degree and pass a few qualification exams. This guide explores how to become a stockbroker, including education, licensure and career data.
How long does it take to become a stockbroker? It takes at least four years to earn a bachelor's degree to become a stockbroker. Some stockbrokers may choose to earn their master's in business administration to enhance their credentials.
While many positions in financial services do not require a college degree, a bachelor's degree is necessary to become a stockbroker. The FINRA General Securities Representative Exam, also known as the Series 7 exam, is one of the most commonly required tests for aspiring stockbrokers.
Stockbrokers buy and sell investment securities on behalf of their customers. There are no specific education requirements for becoming a stockbroker, but many firms require that the applicant holds a college degree. The Series 7 and Series 63 licensing exams are required to become a stockbroker.
Stockbrokers get paid more than most workers. Estimates of the median combined salaries and commissions received by people who sell stocks and other securities to investors range from $62,910 to $149,664 a year.
The outlook for stockbrokers is rosy, as economic growth is anticipated. Deregulation of the industry is allowing many stockbrokers to expand their responsibilities, bringing about a corresponding increase in thier client base.
The trading environment is a fast-paced, high-intensity workplace and brokers may make more than 100 trades per day, depending on their approach. During trading hours, stockbrokers continually monitor the market and make assessments on trades, whether buying or selling, to maximise profit for their clients.
To become a stockbroker, obtain a bachelor's degree in business, economics, finance, accounting or other related areas, complete an internship, gain sponsorship from a Financial Industry Regulatory Authority (FINRA) firm and pass the licensing General Securities Representative Exam.
A strong financial acumen, analytical skills, and an ability to make professional connections are valuable assets for anyone interested in becoming a stockbroker. While there is no set path to a career in this field, aspiring stockbrokers can take several steps that can prepare them to thrive in this role.
Is being a stock broker illegal?
Stock brokers are the intermediaries that conduct transactions between investors and exchanges. They are required to be licensed by the Financial Industry Regulatory Authority and usually have a college degree in finance or business administration.
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $192,500 | $16,041 |
| 75th Percentile | $181,000 | $15,083 |
| Average | $101,533 | $8,461 |
| 25th Percentile | $57,500 | $4,791 |
Take the state law exam. In California, either the Series 63 or the Series 66 exam is also required in conjunction with the Series 7 Exam. The more common of the two is the Series 63, Uniform Securities Agent State Law Examination. The Series 66, Uniform Combined State Law Examination is also accepted.
You usually need a university qualification in commerce, finance, accounting, economics or actuarial science to work as a Stockbroker. Some workers have a Vocational Education and Training (VET) qualification. Registration or licencing may be required.
Securities, commodities, and financial services sales agents usually work full time and some work more than 40 hours per week. In addition, they may work evenings and weekends because many of their clients work during the day.
Brokerage firms have many ways to find potential clients, including email or content marketing, social media campaigns, and asking for referrals. The key to finding new clients is understanding your audience and who fits your target market best.
- Broker. Salary range: $45,000-$131,500 per year. ...
- Commodity Broker. Salary range: $97,500-$112,500 per year. ...
- Energy Broker. Salary range: $60,500-$78,000 per year. ...
- Associate Broker. Salary range: $44,000-$73,500 per year. ...
- Stock Broker. ...
- Broker Assistant. ...
- Brokerage Clerk.
The brokerage industry can be rewarding, but also demanding and stressful. You may face long hours, tight deadlines, high expectations, and intense competition.
Earnings: On average, traders earn more per year than brokers. If your salary is very important to you, you may want to consider which career path can offer you the best financial opportunity.
A billionaire may use some or all of these services, but for buying stocks, they may use a prime brokerage specifically to borrow securities for short selling (making money from stocks when they go down) or borrowing large amounts of money to buy stocks on margin.
Are stock brokers good at math?
A stockbroker is required to have the knowledge of statistics, algebra, probability, trigonometry, calculus one, calculus two and geometry. A systematic mathematical calculation is also helpful in the determination of risk and its minimization in the financial market.
Following a short lunch, the broker may meet with a few clients or prospects face-to-face, as well as wrap up the day's paperwork. Then, most new brokers usually end their day by spending two to four early evening hours making cold calls, networking, or teaching seminars to prospective clients.
Competitive work environment. May require excessively long work hours. May have a hard time building a client base due to the rise of online trading.
Key Takeaways
Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.
Cold calling will likely continue to be a necessary part of being a broker, especially for newer brokers as they build their book of business. Although it may be a hard sell, cold calling doesn't necessarily have to be so problematic.
