Securities brokers advise on investments in securities, such as stocks and bonds, and take a commission on the investment. A bachelor’s degree in a related field and proper licensure are necessary. Building trading and financial skills and gaining sales work experience are useful. The Series 7 exam is required for licensure in the US.
Securities brokers play a key role in the world of financial investments. Brokers work to advise people on investments in securities such as stocks, bonds and mutual funds. After the client agrees to the investment, the broker sends the order to the trading floor of the stock exchange and takes a commission on the investment. To become a securities broker, it is advisable to have a strong understanding of business and finance principles, a bachelor’s degree in a related field, and the proper licensure.
Building trading and financial skills is often the first step in becoming a securities broker. This can be done through thorough study of current investment and market trends. To be a successful broker, it is ideal to have knowledge of futures markets and investments.
Gaining sales work experience is also a useful way to build skills and attract future employers. Many companies hire securities brokers with experience in insurance or real estate sales. Working on a commission allows someone who becomes a securities trader to understand how to deal with clients and manage a commission-based salary.
Many bond brokers hold bachelor’s degrees in accounting, economics, finance or business. Obtaining an internship during your degree course is also considered an excellent way to secure employment after graduation. Some students find employment as summer interns to establish relationships with companies early on. Companies often hire a large percentage of their summer interns as full-time stockbrokers after completing their undergraduate studies.
Some securities brokers go on to obtain a Master of Business Administration (MBA). Typically, an MBA is earned after several years of work in order to secure a top-level position in the industry. Some can earn an MBA directly after graduation, but it’s unusual to attend college without some sort of work experience.
In the United States, securities dealers are usually required to register as representatives of their company with FINRA (Financial Industry Regulatory Authority). Registration requires four months of employment after successfully completing the Series 7 exam. The Series 7 exam is administered by FINRA and must be completed to obtain proper licensure.
The Series 7 exam is six hours long and requires a passing score of over 70%. Some US states require brokers to also complete the state securities brokers’ law exam. This exam is designed to test specific knowledge of securities business requirements and procedures.
Protect your devices with Threat Protection by NordVPN
