Why do people go into stockbroking?

Question

what are the necessary step to take to become a stockbroker

Answer 1

Broker as the word denotes means the go between person, be it real estate broker or stock broker. They get paid commission on the trades that take place through them. More the turn over more is their commission. They make money irrespective of where the stock market goes. They get commission both  for buying and selling your  shares. Commission is usually a small percentage of about .5 or .75 and even as less as .15 %

Answer 2

What do people become doctors, accontants, dentist, bus drivers, - because they want to

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

Good luck, go try it, you may like it

Answer 3

Easy money. Qualifications required - no morals.

Answer 4

Broker as the word denotes means to make a person broke, be it real estate broker or stock broker. They get paid commission on the trades that take place through them. More the turn over more is their commission. They make money irrespective of where the stock market goes while you become broke from buying bankrupt companies. They get commission both for buying and selling your shares. Commission is usually a small percentage of about .5 or .75 and even as less as .15 %