How to Become a Licensed Stockbroker – Career Challenges & Rewards

New stock exchanges opened their doors in the 16th and 17th centuries, including the London Stock Exchange , which was opened at a coffee shop in

Business networking can be critical; those with affluent networks of people to tap into will have a much easier time getting started in this business. However, this should not necessarily deter prospective brokers from signing on at one of these agencies. 

Banks usually have lower payouts than other full-service firms and generally will only hire licensed personnel. Business networking can be critical; those with affluent networks of people to tap into will have a much easier time getting started in this business.

Essential Information 

While both types of work require the same Series 7 securities license, work as a trader is much different than working as a stock broker. A broker assists the customers of a brokerage firm with their selecting, buying and selling of stocks, bonds, funds and other investment products.

Cold prospecting of any kind is seldom required. Most brokers who work at these firms get a permanent base salary plus benefits, and can still earn extra commissions as well.

A typical day in the life of a discount broker consists of: Banks usually have lower payouts than other full-service firms and generally will only hire licensed personnel. Bank brokers are usually provided with their own office inside the bank and can make a good living by convincing bank customers to buy fixed annuities and other conservative products.

The broker will often get a portion of the commission, in addition to the sale being credited to his or her production quotas. Most successful bank brokers have an efficient system of working with the bank personnel, as well as external channels of marketing they can turn to when bank employees are occupied with their own tasks.

Independent Brokers Those who have established a book of business or have the means of doing so without needing the support of a full-service firm may want to look to an independent broker-dealer, such as Raymond James or LPL Financial. This type of arrangement is ideal for someone who has built up a book of business elsewhere, such as at a bank or discount firm, and is now ready to manage this book independently. Because the payouts are so much higher, a lower amount of commission income is needed to maintain the same standard of living.

CPAs, tax preparers, and accountants also have the inside track for retirement plan and corporate business, which can be substantial. Obstacles and Challenges Being a broker is not an easy job. Those who start in this business can expect to encounter many obstacles on their way to success, including: Long Hours of Prospecting.

Therefore, many brokers must rely upon business from friends and family in order to get started. New brokers can also expect to spend many nights and weekends pounding the pavement and marketing themselves.

Although the initial quotas that brokers face are usually the hardest to reach, most firms continually reset these quotas and expect their brokers to make them on an ongoing basis. Those who recommend individual securities must also learn how to research their offerings effectively. Brokers will inevitably have to deal with unhappy clients who may or may not be reasonable in what they expect from their investments. Most brokers who start out can expect to earn next to nothing for the first year or two of production, although they may be given a base salary or draw against commission.

Life, health, and disability premiums — as well as the cost of errors and omissions insurance — are standard expenses for most brokers. These expenses are in addition to marketing and advertising costs and overhead, such as rent and utilities. CE is required to maintain licenses on an annual basis, and many firms also strongly encourage their brokers to earn professional designations, such as the CFP, in order to improve their marketability.

A Registered Representative is also required to complete 30 hours of professional development product knowledge and 12 hours of compliance training every three year continuing education cycle as set out by the Investment Industry Regulatory Organization of Canada IIROC. Passing a fourth exam results in obtaining a 'specialist' license.

All tests can be taken with the HKSI. However, passing all tests doesn't result in automatically obtaining the license. It still needs to be approved by the financial regulatory body.

India[ edit ] Stockbrokers typically earn a bachelor's degree in finance or business administration. Students study the principles of economics and currency, financial planning and financial forecasting. So to get a license as a stock trader, you first need to be hired by a firm that will put you to work trading and also sponsor you for the securities license. There are no specific per-qualification requirements to get a job as a broker.

The typical arrangement is that you have a job agreement that continues only if you to pass the Series 7. Often the firm will provide or pay for a training course to help you prepare for the exam. Broker While both types of work require the same Series 7 securities license, work as a trader is much different than working as a stock broker.

A broker assists the customers of a brokerage firm with their selecting, buying and selling of stocks, bonds, funds and other investment products. As a trader you will work with your employer's capital to buy and sell with the goal of generating profits for the company. As a trader you may also work to complete the transactions the retail brokers receive from customers.

 

Related Content 

Stock brokers are licensed professionals who advise clients and manage client investments. They perform such tasks as purchasing and selling stocks, bonds and other securities. A bachelor's degree in business administration is the minimum education requirement, although some top positions may demand a master's degree.

The Financial Industry Regulation Authority (FINRA) requires that all securities brokers pass the Series 7 exam in order to receive their license. Most states also require you to pass the Uniform Securities State Law Examination, or Series 63, to receive your professional license buy and sell securities in your state. While both types of work require the same Series 7 securities license, work as a trader is much different than working as a stock broker. A broker assists the customers of a brokerage firm with their selecting, buying and selling of stocks, bonds, funds and other investment products. 

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