How to Become a Stockbroker
To many of us the first thing that comes to mind when we think of a stockbroker is the American film ‘The Wolf of Wall Street’! This article will give you the lowdown on everything you need to know about becoming a stockbroker and will ensure that unlike Jordan Belfort your career will not end in federal prison!
What Qualifications Do You Need to Be a Stockbroker?
Most stockbrokers hold an undergraduate degree at a 2:1 classification or higher in disciplines such as investment banking, accounting, finance or economics. It is also advisable to obtain a master’s degree to improve your employment opportunities. Upon completing your degree it is encouraged that you enrol in a graduate training programme with a financial firm.
Experience in a similar career path in a financial field such as an investment analyst is another way of gaining entry to become a stock broker.
Entry-level stockbrokers in America will be required to take The Series 7 exam which is a regulatory exam designed to assess the competence of financial professionals who are involved in the selling or trading of general securities. The exam on average lasts for 360 minutes and is assessed through the format of multiple choice questions.
As a Beginner, Where Should I Start in Stockbroking?
After completing a bachelor’s degree in a relevant discipline such as business or finance, it is important to pursue work experience at a financial firm. Many investment banks and brokerage firms advertise internships during the summer months that can sometimes lead to permanent employment. Internships are an excellent opportunity to receive intensive on-the-job training that will help you to stand out to future employers when applying for post-graduate employment. Most stockbroking positions are based in London or New York.
Skill Set Required for a Stockbroker
Though many people think being good with numbers is the main predictor of success for stockbrokers, that is not the case. You’ll need to be good with more than just numbers and have a variety of skills to make it in this industry, for example:
Attention to detail
Knowledge of the stock exchange
What Does a Stockbroker Do?
Stockbrokers are responsible for monitoring the stock market and financial markets and attempting to get the best financial returns by buying and selling stocks, shares and other financial products. It is a grueling job and requires long hours.
There are three main types of client base service that stockbrokers carry out:
Typical Duties for a Stockbroker
Popular Career Pathways for Stockbrokers
As a stock broker you could work for an investment bank, financial investment and fund management firm or as a money adviser. Related career paths include working as a bank clerk or an internal auditor.