How does one become a stockbroker?

Question

I was wondering, how does one become a stockbroker? What should one major in in college? I don't think there's a separate degree for stockbrokers, right? Do you stockbrokers usually major in Economics or Business then? Also does one need to take separate classes after getting out of college?

Thanks,

Kevin

Answer 1

You need to get a seris-7 license. College degree is not a necessity.

http://www.aitraining.com/series7.htm

Answer 2

You dont need a degree to become a stock broker.  All you need is to get into a broker trainee program with a brokerage company.  Then pass a couple of exams administered by FINRA.  Then if you can sell you're in business.  If you want to go to college, which is always a good idea, the best majors would be psychology or philosophy.  Being a stock broker is about sales and thats about understanding people.  Its a lot like becoming a real estate agent or insurance salesperson.  Get hired by a company to sponsor you and get certified.  Now if you want to become a financial analyst a college degree is more of a necessity and you should major in fiance and or accounting.

Answer 3

In the US - You need to be an employee of a Broker/Dealer so they can sponsor you in order to become a licensed stock broker.  

Firms usually want college graduates, but it is not really necessary nor really a requirement but many firms like it and make it their requirement.

Bank broker/dealers usually want all the sales reps to be college graduates.

Your college major is not important, (No courses in the Academic world prepares you to be a broker).  But since your coming into the world of Finance, some of the more helpful majors would be Finance, Accounting, Economics or Statistics,

You should be good at math and have a decent idea about the stock market.

You should be good at selling, and it would help if you have an outgoing personality.

So if you‘re good at sales, or have a good sales background in place of a college degree, you’re part way there.

Try to get with any major brokerage firm they will put you through an in-house training program, which is primarily getting you ready to take the necessary test for licenses. You will need a Series 7 which is a General Securities Brokers test, and a Series 6 which is just for state approvals.

Most brokerage firms, except bank B/Ds, will put you on salary and once you have passed the test, they will slowly take you off salary and put you on commission basis pay out. Banks will usually keep you on salary.

If you have your choice, you’re always better going to work for a regular B/D rather than a bank - You will learn, faster, better and the proper way of how the industry works. As a broker for a B/D you can always find another B/D that will hire you or at the worse, you can always work for a bank.

But if you’re Bank B/D trained and licensed, it’s very difficult to go work for a regular B/D

Once you become a stockbroker, and you will if you want it bad enough, you will be required to take continuing educational courses which are provided by the industry.  They're are not difficult, they are just refresher items so bring a few candy bars and you'll do fine.

Good luck, go try it, you may like it

Answer 4

You could get a degree in Business, Finance, or Accounting.  You will have to sit for several other tests to actually become a broker though.

Good Luck!

Answer 5

Because stockbrokers are really just salespeople, you can major in basically anything and still be a broker.  Recently, I knew a girl in Chicago w/some liberal arts major and no real solid internship experiences (and def. nothing finance related), and she was offered $60K to work w/a  decent mid-sized brokerage firm.

Obviously, if you majored in finance or accounting, it will help you talk the talk, but really, you'll never get that technical with clients...clients don't ask about CAPM or valuation methodology...or modern portfolio theory....they just want to know if they're portfolio went up or down.

when you're a junior broker you take the Series 7 and 63 exams so you can execute trades.  they're not that difficult.  also, you'll spend alot of your time just building up your book of business, calling on leads generated by the firm.  it can be tough.  but i'veknown brokers that were top producers that grossed over a million dollars per year (and that's after the 50/50 split w/the house)