Becoming a broker is not for the faint of heart. It requires statistical and mathematical saavy that does not always come naturally to the average individual. This is why becoming a broker can be a highly lucrative career. However, just like anything else, you have to be good at it. Your job is to help your clients buy, sell and trade stocks. Of course, the end goal is to make money for you and them. The more money you can make your clients, the better. You might be surprised to find out that you do not have to have a college degree to become a broker. Nonetheless, you will need to pass a series of exams. One way to get started is by taking this expert online course that teaches you how to trade stock options. Read on to learn more about how to become a broker.
According to Payscale, the average salary of a broker falls somewhere between $38,990 and $66,020. Of course, that number can vary depending on where you live, how much experience you have, who you work for and even who you know. Not to mention it also depends on whether or not you have a college degree and where you went to school. For the most part, becoming a broker will not make you a multi-millionaire overnight. On the other hand, if you are good at what you do, you will start racking in the clients and employers will want to scoop you up with tempting offers such as higher commissions and bonuses.
Where Can You Work?
You might be wondering what types of organizations hire brokers? Well, there are several, such as online financial services companies, investment services and brokerage firms. Some of the most popular employers for brokers include, but are not limited to, ScottTrade, Fidelity, Charles Schwab, Morgan Stanley and The Vanguard Group. Have you ever tried to read the electronic tape on a trading floor? It can be confusing, right? This day trading course will help you become a tape reading professional in no time!
How Compensation is Broken Down
In addition to a base salary, you might get full benefits such as a medical, dental and vision plan. Also, you can get commissions and bonuses. Many pay structures will start out with a comfortable base and some commission. As you gain more experience, you might get a smaller base percentage and larger opportunity for commissions and bonuses, which is your bread and butter. You will not get as high a base salary as you could make in commissions. Some brokers make six figures or more on commissions and bonuses alone. That fact might make your mouth water, doesn’t it?
Of course, you do not have to have a college degree, but it certainly does not hurt. Some of the most popular degrees for brokers include, finance, business administration and even economics and mathematics. I think you can see a trend here that math should be your priority if you want to become a broker. In addition, you should have experience with new and emerging technology because you will use a lot of it to help with your trades. Nonetheless, even with the most advanced software, you need to be good at math so that you know whether or not it is giving you the right numbers. You do not want to get stuck in the event technology fails for one reason or another.
Another way to get into the door of this rapidly evolving field is through an internship. In today’s tough economic times, more and more employers want brokers with at least some experience. That means working and training on the job. You need to have knowledge of financial planning, sales, securities, investment management and customer service. The most important thing is to learn how to trade, which this online course will teach you how to do in spades!
You might also be thinking, why do you need to have a sales background?Well, you always have to sell your clients on why they should invest in one stock or another. This can also go hand-in-hand with understanding the basics of customer service. You can have all the financial services knowledge you need, but you cannot go anywhere without clients.
To become a full-fledged broker, making commissions, you need to get licensed and pass the Series 7 exam. However, in order to get licensed, it is required you have a company sponsor. This means you have to work for an investment firm. When a firm hires you, they expect you to start studying for the Series 7 exam in addition to working for the firm. Also, some states require you to pass the Series 63, Series 65 and Series 67 exam. Check with your firm and state to know where you need to get started. So, expect long days and nights when you first start out. The important thing to keep in mind is the big picture. Once you pass, you can start getting the ball rolling and moving up in your career of choice.
What is the Series 7?
Take a deep breath because the Series 7 exam is a very long 6-hour test. Some compare it to the bar exam taken by lawyers. It covers every area of investment from law, ethics, mechanics and options theory to investment theory. You could end up handling millions or billions of dollars worth of investments. You really have to know and understand what it is you are doing.
Once you learn how to become a broker, you might not want to do anything else with your life. If you are passionate about this role, your career can skyrocket. Of course, it is a high pressure job, so you have to have the character that understands how to effectively deal with stress. In addition, if you need more information on the brokerage field, you should check out this post to becoming a stockbroker. If you enjoy working with stocks and helping your clients enhance their investments, then you might very well be on your way!