How to become a stock broker?

Question

I know you need to pass the series 7 and series 63 to become a stock broker and work with clients, but how do i start? How do i find a brokerage firm that will train me to pass these exams. I need some guidance. How do i find brokerage firms to work for in my area?

Answer 1

You are exactly right.  You can't do this on your own.  You must be sponsored by a brokerage firm to take the exam.

Make an appointment with the branch manager of Merrill Lynch near you and go in and ask them.  Then move on through the phone book until somebody says they will hire you as a trainee.  This is just like any other job search and interview process.

Answer 2

Me not very versatile in that area, but maybe can help. My son likes to break stocks all the time, he does it over his knees. Boys are so rough.

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.

Most of the major brokerage firms have trainee programs for sales reps, and are always looking for new young ambitious people.  

You will have to use your local yellow pages to get the frims that are in your area and call them about their training programs for sales reps.

You will have to speak to the office manager if it is not the main office for the firm.

You can go to the library and check out the "red book" (Securities Dealers of North America), it will provide the firms in your area along with the Managers name and number.

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