What a Stockbroker Does and How to Become One
Stockbrokers buy and sell stocks on behalf of clients and try to get the best financial returns from it and also work on trading software such as the Bitcoin Future. It works just like a small business, and these clients could be either individuals or institutions. However, a stockbroker doesn't just become one because they feel like it, as they also need to understand what it entails and get all the requirements necessary. Being a stockbroker also means taking along other responsibilities, like handling the aspect of securities and commodities, to ensure your client gets the best service.
In a nutshell, here’s a breakdown of what a Stockbroker does:
- They buy and sell stocks and other securities on behalf of their clients
- They advise clients about various investment options and point out the pros and cons
- They provide investment management services to clients on behalf of financial institutions
- They manage clients’ investments and help them make better decisions based on their financial goals
A stockbroker makes it possible for the average person to buy stocks through exchanges like the New York Stock Exchange and NASDAQ by standing as the middleman.
Requirements for Becoming a Stockbroker
To be successful in this field, you need a specific set of skills to ensure your clients get the best and can feel safe with your service. Some of the necessary skills needed to thrive in this field include IT and maths skills, great negotiation skills, strong decision-making skills, ability to persuade clients, determination, and finally, the ability to communicate effectively to build a long-lasting relationship with clients.
You need a formal knowledge to help you put your best foot forward. There are no specific degrees needed to become a stockbroker but you should obtain a high school diploma and have a bachelor's degree. Majors to consider include Accounting, Finance, and Economics or any other course in the Finance or Business field. To take it a little further, you could pursue a Master of Business Administration (MBA) degree, which will advance your career in being a stockbroker.
3. Licenses and Certifications
All states require stockbrokers to take and pass licensing exams and obtain certifications. Although specific requirements vary by state, all stockbrokers are generally required to pass the Series 7 and Series 63 exams. While Series 7 focuses on the trading of the different types of securities in finances, Series 63 has an additional focus on state rules and laws. You could work as a new unlicensed stockbroker in some places but you would be expected to earn your license in a few months.
The wealth of experience also matters, so how soon you start and how consistent you are could determine a lot. Most people often start from taking an internship in their last year of college or working for a brokerage firm to gain on-the-job experience. Employers seeking experienced stockbrokers often need a minimum of one to three years.
The Bottom Line
Being a successful stockbroker would require a lot of patience, determination, and consistency. However, you need to get started with the basics, and then, learn to deal with your competition in the field to thrive.
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