Becoming a Stockbroker

Are you looking useful information on how to kick-start your stockbroking career?  Perfect! This is Stockbroker101 and we are here to guide you through to ultimate ways of how to become a stockbroker. Welcome aboard! Stockbroker101 is dedicated to help individuals who want to become professional stockbrokers. We compiled a list of reliable business schools to narrow down your searches. Most importantly, we have written detailed information about the securities industry and what awaits you as a stockbroker.

To Live the Dream

a stocbroker at workSo… you plan to become a stockbroker? Deep inside you, you know that you have what it takes to be on the Wall Street. Maybe you want to become the next Warren Buffet. Maybe you have other goals. In any event, you are determined to take this path. You are about to take a big leap into a whole new career. You know that you are capable of managing other people’s money and help them succeed. The path to success in the securities industry is a tough one. There is a promising reward to those who excel. The world of a stockbroker is mainly about financial math. The best brokers are also good at seeing patterns in charts and graphs.

This is Not Going to be Your Usual 9-to-5 Career

Before we dig in deeper on how to be a stockbroker, lets talk about the reality behind the successful as a stockbroker working at a brokerage. You see, stockbrokers work more hours than the common 9-to-5. Brokers work most weekends and evenings just to keep up. It takes more than professionalism to deal with their prospective clients. Selling stocks can be a lot harder than selling ordinary goods. In recent years there has been a significant growth on the number of professional stockbrokers. With today’s economic uncertainty there are more players trying to get ahead. Hence, you can expect greater competition as a broker as compared to ten or twenty years ago. Indeed, it is a very competitive and stressful career. But, make no mistake it is extremely rewarding to those who have what it takes to succeed. You need every advantage you can get. You are more likely to get stockbroker jobs if you came from a well-known business school and have already demonstrated success in other financial fields.

How to Become a Stockbroker

Is it not odd that the only generous person I ever knew, who had money to be generous with, should be a stockbroker.
—Percy Bysshe Shelley

So Basically, What is a Stockbroker?

Stockbrokers are usually associated with brokerage firm. A stockbroker’s general responsibility is to sell and buy financial products for clients. A broker’s main focus is to match up stocks both for his seller and buyer. Brokers make commission on everything they sell. To become a professional stockbroker, you must have a license. There are series of exams to be taken before an individual can gain this license.

Education, Training, and License

Back in the early days of the stock market, a formal education wasn’t necessary for an individual to become a license stockbroker. However, today, most financial institutions require their applicants to have at least a bachelor’s degree. Most finance courses cover the topic of how the stock market graphstock market works. Those who have an MBA in Finance are most likely to get hired. Individuals who majored in economics, accounting, statistics and business management are also in-demand by brokerages. Any applicant is also likely to undergo a financial vetting process. It is standard practice for firms to discard applicants who have a bad credit history. This includes tax liens and bankruptcies not just poor credit scores. In the United States a series 7 and series 63 licensed is also required to work as a stockbroker. Otherwise, you’re not likely to be considered a serious contender  at a brokerage. So, it will be harder for you to get stockbroker jobs. Different countries around the world have different rules for granting securities licenses. A quick overview is in order.

Stockbroker License in Asia (Hong Kong and Singapore)

If you were to look in the current statistics, Hong Kong and Singapore are two of the leading countries in Asia. So the rising number of individuals seeking to learn how to trade stock is hardly a surprise. In Hong Kong, for one to obtain a license, a prospective broker has to pass three exams to prove his knowledge in the financial industry. There is an optional fourth exam for getting a specialist license. In Hong Kong, passing all the exams does not automatically grant a license. All applicants must first be approved by the regulatory board. In Singapore, applicants must pass four exams. These exams are mandated by the Institute of Banking and Finance. After passing the exams, the applicant will also have to apply for a license on the MAS and SGX.

Stockbroker License United Kingdom and the United States

The UK requires their stockbrokers to pass the XII Chartered Institute for Securities and Investment Certificate in Securities exam. To qualify, an applicant must pass two exams. In the United States, you have to pass the Series 7 Exam. This exam is sometimes called the General Securities Representative Exam. Those who pass gain a Registered Representative license.

Stockbroker Salary

As of May 2011, the average stockbroker salary is $98,810 per year—that is $47.50 per hour. Management and technical consulting industry offers excellent compensation averaging $149,180 annually. The salary of stockbrokers who work in the mineral and metal industry is notably higher averaging of $182,020 per year.

Characteristics of a Successful Stockbroker

There are traits that an individual must possess in order to succeed as a stockbroker. One must be able to persuade clients to buy the financial products. Patience, honestly, reliability, and transparency are among the characteristics required to accomplish this. A little sense of humor is always good too. From a sales perspective humor makes clients feel more at ease. Of course, good math skills are vital when it comes to selling or buying stocks.

The Floor is Yours, Take the Action

Now that you’ve learned the ins and outs of how to become a stockbroker, take action!

We have compiled the best business schools that can certainly help you on your path to becoming a broker. Again, it’s best to get an MBA in Finance. Enroll today!

We also have information on passing the exams required to obtain that license. That stockbroker license is your next big milestone (after the MBA in Finance) to becoming a professional stockbroker. Check out our guide to getting a Series 7 license.