What do stock brokers do?

Question

It's time for me to decide my future career and math and investing have always been my strong interests. I wanted to be a stock broker since I was in middle school but I'm not sure what I would be doing and how I would get to do it. I know that stock brokers buy and sell stocks but in full detail what's their job like and what do they do?

Answer 1

A stock broker has clients who have stock portfolios. They then work the stock market to try to make money for their client. The broker makes investments for the client based on what he thinks will make money. At the end of the day, he will either have made money, lost money, or broken even. It's kind of like legalized gambling with someone else's money.

And, the beauty of it is that the stock broker makes commissions on the trades whether they make money or lose money. But, if a stock broker continually posts losing sessions, he will quickly run out of clients and be out of a job.

Answer 2

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

Brokers are basically sales people, they service the clients of their firm and try to solicit for additional clients.  They help their client make investment decisions, or provide investment advice.

The Research Departments or the firm provides research material to help the brokers provide investment ideas for them to recommend to the client.  Most brokers are prohibited from making or recomending their on investment ideas unless they have been approved by the firm.

Answer 3

Thats pretty much it they are very knowledgeable in micro/macro economics they know how to analyze markets and whats best for the investor. Stock broker and Loan officers have to be the two easiest jobs in the world that make ridiculous amounts of money!!!

Answer 4

Brokers "broker" the purchases and sales of stock for individual investors.  Investors have a choice of conducting their trades online, with a broker, or a blend of both.  For a broker to make serious money, he'll need to handle people well, do the homework required to make superior trades (over his competition) and maintain both of those standards with consistent follow-up of a quality that causes people to continue doing business with him and his firm over others.  There is nothing easy about doing it well. Like most careers, there are people who just "schlep" along, bouncing from firm to firm, and there are others who make a very nice living. Being at the top of any field requires homework, study and commitment. This is not rocket science, like virtually everything in life worth doing, it is a time intensive craft that is learned through experience. Those who are the most committed are the most rewarded.