Related: Hard Skills vs. Soft Skills. According to the Bureau of Labor Statistics, employment for commodities, securities and financial services sales agents is projected to grow four percent from to , which is approximately the same rate as all occupations. The high pay that's associated with these positions draws more applicants than there are openings, which is why there is intense competition for openings.
Certification can make you more competitive for jobs, as can obtaining an MBA. A good certification for a stockbroker is a Chartered Financial Analyst certification. There are many ways to look for new clients. Some of the most common are:. Find jobs. Company reviews. Find salaries. Upload your resume.
Sign in. Career Development. What does a stockbroker do? Providing accurate investment advice to clients Managing client investment portfolios Accurately evaluating financial reports Staying up-to-date on the latest financial news Updating clients regularly regarding the status of their investment portfolios Making changes in investment strategies based on client goals and market conditions Finding new clients through cold calling and networking.
In more than 1 year. Next Step We value your privacy. Who is this guide for? We value your privacy. How to Become a Stockbroker. What Is Financial Therapy? BS Financial Services Curriculum. What Does a Stockbroker Do? Steps to Becoming a Stockbroker Professionals seeking jobs in finance may choose to pursue a number of paths toward a career as a stockbroker. Gain Professional Experience Many firms require broker candidates to have professional experience in business or finance.
Pass Required Qualification Exams All brokerage firms will require that employees obtain the necessary government licenses before they can become a stockbroker. Stockbroker Salaries The salary range for stockbrokers fluctuates significantly, likely because many brokers work on commission.
Future Growth Opportunities for Stockbrokers The expected rate of job growth for stockbrokers is 6 percent, with an estimated 23, new jobs to be created from to , according to the BLS. Learn More About Becoming a Stockbroker Stockbrokers work hard to help their clients achieve their financial goals. Learn more about the online financial services bachelor's program. Brokers who work for these firms will be provided with a comprehensive training package that includes sales and product training as well as education in administrative procedures and compliance regulations.
They will also typically be provided with office space or at least a desk , business cards, a guaranteed salary or draw against commission, and a high sales quota that they must meet within a relatively short period of time if they want to remain employed. Some firms have changed their models and allow their reps longer periods of time with bigger starting salaries so that they have a better chance of succeeding. But a relatively large percentage of each class of trainees will wash out of these programs because they are not able to generate enough business to meet their quotas.
These firms typically offer a wider array of products and services and do not require their reps to sell proprietary products of any kind. They also usually offer much higher payouts on commission than full-service firms, and sometimes a warmer and friendlier atmosphere. However, they are usually only capable of giving back-office administrative support and do not provide amenities such as office space. Those who work for these firms must pay for all of their own expenses and overhead.
Those without prior training or licensure might be wise to start at a full-service firm that will provide these things at no cost; even if this sort of outfit is ultimately where they want to be, they will acquire skills that make them much more marketable when they leave. These firms are geared toward providing effective service for walk-in clients and usually pay their brokers a flat salary albeit with some minor bonuses or other incentives.
Some brokers can eventually build up enough of an informal clientele that they can eventually move back to a full-service or independent broker-dealer and make a living there. Discount brokers are likely to gain a much broader base of experience than many full-service brokers, who generally specialize in certain areas such as IRA rollovers or employee stock options.
A rep who works at a firm such as Schwab or Fidelity is expected to be able to provide a broad array of research and services, including basic technical and fundamental analysis, rollovers, stock options, margin accounting, derivatives, bond ladders, mutual funds, closed-end funds, exchange traded funds, partnerships, charitable gifting, exchanges, and many other areas of investment, retirement, and estate planning. Reps are often required to perform administrative duties such as cashiering, opening new accounts, processing stock certificates , and other paperwork.
But they are not subject to the kind of sales pressure as their full-service counterparts and, generally, have either very low or no production quotas of any kind. Bank Brokers: Being a broker at a bank is an entirely different proposition than working at Merrill Lynch or Fidelity.
Like most discount firms, many banks also look for licensed brokers with previous experience, but the banking system is so unlike the brokerage world that it usually takes newcomers a while to get their bearings. Bank brokerage positions were once viewed as dead-end jobs that were only for brokers who failed elsewhere, but this perception has largely disappeared with the growth of this segment of the brokerage industry. Most banks and credit unions now employ in-house investment consultants who can offer non- FDIC insured products and services.
A growing number of banks also expect their reps to cultivate a clientele from outside the bank, however, and have worked to develop a system that rewards bank employees for referring customers to them as well as some sort of prospecting platform to bring in new business. Experienced brokers understand that they need to be visible and present to the bank staff and work to educate them on what they do, but also be able to stay out of their way when they get busy with their banking duties.
Many of them will invite wholesalers and other product vendors to bring lunch for the staff and then explain how their products can benefit bank customers.
Brokers within a banking environment often have to make an extra effort to get their clients to understand that what they offer—unlike the regular bank accounts—is not insured by the Federal Deposit Insurance Corporation FDIC. Bank brokers can also expect to work with a more conservative clientele than they will encounter elsewhere, and many of them rely heavily upon fixed annuities and other low-risk products to build their businesses.
But bank brokers usually escape the high sales quotas and pressure to sell products that those who work at other full-service firms face. Wherever a fledgling broker lands, the core of their effort is on building a book of business. There are many ways to seek clients, including:. Review the chart below to learn about the salary and projected growth rate for these professionals. You can use this information to compare similar jobs. The median income of a stock broker is well above the national average.
However, the actual income of a stock broker relies on many factors, including years in the business, the firm they are working for, their level of educational attainment, and geographical location. These salary differences, based on geography, are highlighted in the below map. The need for stock brokers is growing even faster than the national average.
The following map will show where the new stock broker jobs are expected to be. At a minimum, stockbrokers must pass the Series 7 and Series 63 exams.
The Series 7 license allows the holder to sell securities, but not futures and commodities. Many individuals who work in the financial planning field take this exam before earning additional certifications. This exam covers topics like taxation, retirement plans, investment risk, and equity. It also includes questions that relate to client interactions. The exam consists of questions and posts a time limit of minutes. To pass, students must answer at least 90 questions correctly.
The Series 63 exam, also known as the Uniform Securities State Law Examination, includes 60 questions and allows students 75 minutes to complete. The exam requires 43 correct questions for a passing score. Once aspiring stockbrokers pass the Series 63 exam, they can facilitate the purchases and sales of mutual funds, bonds, and stocks in a state. The Series 65 license is an additional credential stockbrokers can pursue.
Passing this exam allows them to become a licensed investment advisor. Rather than taking the Series 63 and 65 exams separately, individuals can take a combination of the two through the Series 66 exam. Advanced stockbrokers can earn additional certifications. For example, certified financial planners and financial advisors can offer comprehensive financial planning advice to their clients.
Additional certifications allow professionals to offer more client services. Earning certification to become a chartered financial consultant requires nine college-level courses that cover topics like estate planning and income tax planning. After earning these credentials, consultants must complete 30 hours of continuing education every two years.
Similarly, becoming a chartered financial analyst requires education in statistics, probability theory, and economics. The Chartered Financial Analysts Institute administers the exams for this certification. Applicants must pass three levels of exams, and each one requires about hours of learning and studying. Aside from additional certifications and licenses, stockbrokers can enhance their qualifications by earning a graduate degree.
Individuals can choose to pursue a graduate degree immediately after their bachelor's degree, but many choose to pursue a few years of professional experience beforehand. On average, full-time learners need two years to complete a master's degree. Part-time learners take about four years. A master of science in finance and a master of business administration MBA both prepare stockbrokers to succeed in their field. A master of science in finance offers a more focused curriculum than an MBA.
This degree covers finance-related topics, like managerial accounting, investment analysis, and corporate finance. Individuals who want a more comprehensive educational experience can pursue an MBA.
This degree includes courses pertaining to finance, and it also covers topics like marketing, management, human resources, strategic planning, and operations. Regardless of which option learners choose, a graduate degree prepares them to emerge as leaders within the finance or business field.
Graduate courses teach students how to make big-picture decisions that influence an organization's success. Through graduate coursework, learners practice research and analytical skills. In fact, most graduate programs require participants to submit a thesis or portfolio that demonstrates these skills. Some courses may also require essays and traditional exams. See below for three common courses in finance and business graduate programs.
Keep in mind that programs may not offer all of these courses. Before enrolling, prospective students should consult with a school's admissions department and review course descriptions.
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