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If you are fascinated by finances and think helping people manage their money may be your professional niche, then you may have what it takes to become a stockbroker. Although the recent financial crisis and economic recession scared many people out of the stock market, one by one people are jumping back in with their investments in search of monetary gains. As a result, employment for stockbrokers and other financial services sales agents is expected to grow at the rate of 11%, thus creating 39,700 new jobs before 2022, according to the Bureau of Labor Statistics. In order to get started on the right pathway towards selling securities and commodities directly to individual clients, the following is a step-by-step guide on how you can become a stockbroker.
Earn a Relevant Bachelor’s Degree
Although there is a relatively low bar for becoming a stockbroker with some positions available once you receive a high school diploma, most employers will prefer candidates who have a bachelor’s degree for entry-level positions. Students aspiring to become stockbrokers usually will pursue an accredited undergraduate degree with a major in business administration, finance, accounting, or economics to build essential skills for the stock market. Most firms will provide new employees with intensive on-the-job training to teach the specifics of the job, but participating in a summer internship can be very valuable during the last year of college to increase your chances of landing a full-time job before graduation.
Receive Professional Licensing
In most cases, stockbrokers will need to register as representatives of their securities firm within the Financial Industry Regulatory Authority after working for up to four months. In order to obtain licensing, stockbrokers are required to receive a passing score on the National Association of Securities Dealers’ General Securities Registered Representative (Series 7) exam. Many states nationwide will also mandate that you successfully complete the Uniform Investment Advisor Law (Series 65) or Uniform Securities Agents State Law (Series 63) examination as well. Maintaining these professional licenses requires you to participate in a certain amount of continuing education credits monthly to stay updated on the latest regulations, client services, new securities products, and issues in selling investment products.
Consider Pursuing a Master’s Degree for Advancement
Once you have accumulated a large number of accounts and received many years of experience in financial services, you may be interested in advancing to more senior-level executive positions in your firm. While it is possible to simply get promoted into these positions based on your credibility and reputation, you may want to enhance career advancement by earning a master’s degree from an accredited institution. Some stockbrokers decide to receive a Master of Science in Finance or Economics, but the Master of Business Administration can be a great way to obtain high-level securities positions by learning more about broad-based business practices.
Related Resource: MBA in Finance
After following these steps, you will have the credentials needed to sell securities to individuals, provide advice to companies in search of investors, conduct stock trades, sell commodities, monitor financial markets, evaluate revenue of agreements, and explain available stocks to prospective clients. As you become a stockbroker, you will unlock job opportunities for advancement in the securities and commodity contracts intermediation industry for building a successful career in finance.
