Becoming a stock broker will mean a very fast-paced life with the chance for yearly bonuses, high wages and working in a field that is steadily growing. Before a person can become a stock broker, they will need to know the strict requirements they face, the field’s current outlook, the duties associated with this position and which companies will hire a broker. A Stock Broker Career can be very beneficial and fulfilling and provide for a very comfortable life. Below is an overview of what it takes to pursue a career as a stock broker and related career information.
Requirements to Become a Stock Broker
The requirements to become a broker are as follows:
- Enroll and complete a trainee program
- Pass a Series 7 Exam
- Work as an assistant to a producer
Trainee programs are offered by firms and will provide the potential stock broker with the foundation they need to break into the field. While not a stringent requirement, most trainees will find that a degree in finance, economics or accounting will help them land a trainee position much faster.
Once a trainee position has been secured, training will commence. At the end of training, a trainee will be required to pass the Series 7 Exam before they can move on in the field.
Upon exam completion, a person will often become an assistant to a producer in which they will be trained by a current stock broker and will be able to follow their every move along the way. This is how a person truly learns the ins and outs of the industry.
Stock Broker Salary
The median stock broker salary, according to the Bureau of Labor Statistics, was $71,720 in 2012. Any individual Stock Broker Salary will be dependent upon the city in which a person is a broker as well as their experience.
While the median salary was $71,720, the lower 10 percent of brokers earned $32,000 per year and the top 10 percent earned $187,000 per year.
Life as a stock broker is exciting and anyone entering the field will find that the growth expectancy between 2012 and 2022 was slated at 11 percent. This would add 39,700 jobs to the field within just a 10 year span.
There are numerous duties of a stock broker. These duties include:
- Customer service and recruitment of new customers
- Calling prospective clients
- Building trust among clients
- Updating clients on their investments
- Trade execution
- Recommending investment options to clients
- Researching investments
Much of a stock broker’s time will be spent on the phone trying to lure in prospective clients or calling current clients to update them on the performance of their portfolio.
Companies That Hire Brokers
Stock brokers will find that many employers are hiring at all times of the year. As a broker, there is a lot of potential for employment from big investment firms to working with banks. The current biggest employers include:
- Banks: Chase Bank, Bank of America and State Banks are always hiring stock brokers to sell investments.
- Investment Firms: Morgan Stanley and Merrill Lynch are two very big firms that take a more traditional approach to trading and act as a full-service broker.
- Independent Firms: Independent investment firms, such as Raymond James or Linsco Private Ledger are two hot firms that are always hiring.
Stock Brokers often work for bigger entities, such as investment firms, before moving to independent firms that pay much higher commissions. Since stock brokers often work on commission, there is always employment available due to the low risk factor of the employer.