How to Become a Broker
Being a stock investor is not an easy thing to do. There is solid knowledge and experience needed in the stock market to be able to make successful investments. Often, those who do not study the stock market end up losing a great deal of money. There is so much risk when buying and selling stocks and if you are not knowledgeable enough, you risk losing your hard-earned money. Every stock investor wants to prevent such a scenario.
It is quite admirable to have the desire to work with stocks in the current competitive market. However, if you do not want to make risky investments then you can choose to become a stockbroker instead. This is a great way to earn full time or part time income. If you want to know how to become a broker, here are some things you must consider:
- Get your education. Anyone working in the stock market should be educated about the risks of investments. A stockbroker buys and sells stocks to clients, traders and investors. Being well educated is of importance in order to make the best decisions. Your knowledge is your main weapon in making money and helping clients make sound investments.
The stock market is becoming more and more competitive so having a college degree will benefit you. The college degree teaches you mathematic principles and how to properly invest money. Aside from this, you will also be taught how to analyze stock market trends and how to make your own forecasts.
Therefore, it is very important that you get an education to become a stockbroker even though a college degree is really not a requirement. A college degree will play a huge role in your stockbroker career especially when you have clients seeking your expertise in making investments.
- Investment Portfolio- Similar to artist and photographers, if you want to know how to become a stock broker, you need to work on your investment portfolio. This portfolio serves as your tracker for investment successes. Your portfolio will highlight your skills in stock market investing. Once you present your investment portfolio to clients, you can get their trust and confidence. When they hire you, you can already do the trading for your clients.
- On-the-job Training- In order to become a successful stockbroker, you should be open to joining on-the-job training programs. Such training will help you gain more experience in picking stocks, purchasing and selling them. Most securities brokerage firms will let you undergo 6 months training and take the Series 7 and Series 63 exams. Once you have completed these, you can become a qualified stock broker.
It is important to know that during this training period, you will not earn a lot of money. In fact, you might even be working long hours that are unpaid. These are just some of the sacrifices you have to make at the start of your career. Nevertheless, you will learn a lot from these training workshops that will help you become a successful stockbroker.
What Are The Steps On How To Become A Stock Broker?
- If you have always wanted to become a stockbroker, your career should start in high school. You can take courses in economics, math and business to start laying the foundation of your education. There are high school students that start their stock portfolio at a young age. High school is a great start to learn about risks and investments. The more years that you study how the stock market works, the more you will know each part of it.
- Joining an investment club will help you learn about investments. With stock investors all trying to help one another make more money, you can learn different investment opportunities, analyze results and even join them in making investments.
- You should go to college and complete a 4-year bachelor’s degree. Stock brokers should choose a degree in economics, finance or business.
- After completing your degree, you must pass the Series 7 Exam or the General Securities Registered Representative Examination. The National Association of Securities Dealers administers this test. Other states will require you to take the Series 63 Exam or Uniform Securities Agents State Law Examination and the Series 65 Exam or Uniform Investment Advisor Law Exam.
- You can join on-the-job workshops while preparing for these exams. Brokerage firms will gladly offer on-the-job training to aspiring stockbrokers which will last 4-6 months.
- Once you pass the exams, you can become a registered stockbroker already. You can start applying for a job in brokerage firms or be a freelance stockbroker.
- The work environment for stockbrokers is competitive. Brokerage firms hire a huge number of college graduates because these applicants usually quit after a few months of grueling training. You must be prepared to tough it out in order to build your own clientele.
- Always highlight your studies and work experience in your resume. Your portfolio should also be organized and shows the successful investments you have done before.
To become a stockbroker, you should have the passion to work with numbers every day. Forecasting and risk management are necessities in stock market investing. If you are knowledgeable and skilled enough, you will get the trust and confidence of clients. You can do the buying and selling for them. Moreover, getting more clients to trust in you will help you learn how to make money so you must always work on your qualifications and portfolio.