How to Become a Stockbroker?
Stockbrokers are responsible for buying and selling shares and stocks for commercial and private clients; usually mainly salaried on a commission basis. If you don’t know how to become a stockbroker, you’re not alone. Becoming a stockbroker can be a difficult process, largely due to the intense competition in the career field. Here are the steps you need to take:
Becoming a stockbroker requires particular educational certifications to prove you have the aptitude to deal with financial institutions. This means that if you are looking to become a stockbroker, you need to ensure that you plan your educational path accordingly.
A Bachelor’s degree is the most basic requirement, especially in a related subject. Due to the nature of working with stocks and shares, mathematical and financial based degrees are favoured. Relevant degrees include subjects such as:
In order to make yourself more attractive to employers, undertaking an MBA is a good idea as it can increase basic salary on entry.
Further to education, stockbrokers need to sit examinations in order to gain licenses to practice. Firstly, you must complete four to six weeks of employment before taking examinations; this can be in the form of an internship.
After this period, you need to take the Series 7 examination, formally known as the General Securities Registered Representative Examination. You must pass with a score in excess of 70% to gain your license. This automatically registers you with the Financial Industry Regulated Authority, sponsored by the hiring brokerage.
It is important to note that some states require further licensing, such as the Uniform Securities Agents State Law Examination, and the Uniform Investment Adviser Law Examination.
Being a stockbroker requires a certain type of personality, and the job simply isn’t for everyone. If you feel you are interested in becoming a stockbroker, you should consider whether you personally adhere to the following character traits and skills.
- The ability to work in a team when required, but to have the initiative to work under your own volition when individual work is required
- Confidence in your ability to make logical and rational decisions based on valid information
- The capacity to withstand high pressured environments and to respond calmly and effective under this type of stress
- A good judgment in regards to risk taking, using all available information to reduce the inherent risk, leading to more successful operations
- Honesty that is reliable and transparent to client
- Attention to detail in order to pick up mistake and recognise a wider situation that is affected by a variety of factors
- Excellent communication skills to speak directly with clients regularly and to work effectively within a team
- Determination and perseverance to succeed
- Mathematical and analytical skills which allow you to understand and effectively evaluate a situation within a financial capacity
Becoming a stockbroker is a combination of both educational requirements and personal attributes and skills. One without the other is ineffective in this career choice. You must be able to work in high pressured environments and use you educational achievements to analyse financial situations and take risks to achieve the best result for the client.
Here’s a simple video that describes you how to become a qualified stockbroker. Just check it out.
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