How to Become a Stock Broker
From Adviceopedia
If you’re wondering how to become a stock broker, you should know that there is no exact path which will guarantee you success. People within the stock broker profession come from a wide variety of educational and professional backgrounds.
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Find Out How to Become a Stock Broker
Do I Need to Go to College?
Not every stock broker goes to college. Some people have a knack for money, figures, and the stock market and manage to thrive as a stock broker without a related degree, or any degree at all. That said, brokerages do prefer to see college degrees on the résumés of their applicants, and some degrees are more applicable to a career as a stock broker. An example of an applicable college degree includes financial or business majors.
A degree related to finance or business is not necessary to pursue a career as a stock broker, but these courses of study will prepare you for a career in the financial sector.
Do I Need Any Certifications?
You can’t just jump into being a stock broker without the proper certifications. You are required to pass the General Securities Representative Examination, also referred to as the Series Seven Exam.
This certification is only the beginning. Each individual state sets regulations regarding what certifications are required for stock brokers, and employers may have additional requirements in addition to necessary continuing educational requirements.
What Else Can I Do Beyond Education and Certifications?
Being a stock broker is not an easy job. Although many people thrive in a high-pressure environment, if your decision to become a stock broker is based simply because you think it will make you rich, then you’re heading toward a miserable situation. You should have a passion for the stock market and find the entire process thrilling. You should also have a knack for investing wisely.
How do I Know if Being a Stock Broker is for me?
One smart way to figure out if you would enjoy making your living as a stock broker is to spend some time investing your own money to see if you are able to turn a profit. You can find websites that offer demo accounts which simulate investing in the stock market, but there is certainly something to be said for having the accountability of investing your own money.
Are There Books Which Tell Me How to Become a Stock Broker?
There are plenty of great resources available for potential stock brokers which detail what the profession is actually like as well as revealing the difficulties associated with obtaining the necessary certifications. Be sure to avoid books which hype up the stock market as some type of magical method for making your fortune. You should be prepared to work hard when earning your certifications, and work even harder when in the business.
Here is a brief listing of some available books which you may find helpful when trying to figure out how to become a stock broker:
- Thomas Dorsey’s book Thriving as a Broker in the 21st Century
- Lauren Liebenberg’s book The Electronic Financial Markets of the Future: Survival Strategies of the Broker-Dealers
- R.J. Shook’s book The Winner’s Circle: How Ten Stock Brokers Became the Best in the Business
If you have never invested in the stock market before, then you should check out a book about the basics of investing such as Investing in One Lesson or Investing for Dummies.
Can I Make Money as a Stock Broker?
If you are good at your job, then you can make quite a bit of money as a stock broker. You must be aggressive and thrive in a sales environment, but stock brokers with major companies can easily earn six-figure annual incomes as long as they are successful. Being a stock broker is not generally an occupation which has a high set salary, but the substantial money comes from commission.
