How to become a Licensed Stockbroker
A licensedstockbrokerbuys and sells shares and other financial investments on behalf of their clients. This career requires dealing with individuals, as well as national and international business entities. Though you don’t need a college degree to work as a licensed stockbroker, a background in business and finance is an asset to carrying out your business. In addition to proper licensure, continued education keeps you abreast of current business practices.
Earn Bachelor Degree inFinance
Although you don’t need a college degree, a first step to consider before becoming a licensed stockbroker is earning a bachelor degree in finance or a related business field. A four-year degree includes courses in mathematics, economics, accounting, statistics, and business management. As a stockbroker, you will have to deal with the public, so courses in interpersonal communications would be helpful. As an undergraduate, you may want to explore student work study or internships in the financial world.
Consider Getting a Master of Business Administration (MBA)
A Masters of Business Administration, or MBA, provides an in-depth study of business-related courses like accounting, finance, marketing, human resources, and business management. The programs are designed to prepare for international business. The application process for many MBA programs is competitive. Most schools require an entrance exam, the Graduate Management Admission Test (GMAT). The GMAT has three sections: Analytical Writing, Quantitative, and Verbal sections. The required score varies from university to university.
Register with the Financial Industry Regulatory Authority
Once students graduate from college, you need to work for an investment firm or brokerage registered with the Financial Industry Regulatory Authority. TheFINRAis the United States largest independent regulator of security. It ensures that investment companies and brokerages are conducting honest and fair business practices. Its primary goal is protecting a client’s investments. After you have worked for an approved firm and passed the General Securities Registered Representative Examination, or the Series 7 Exam, you can become a licensed and registered stockbroker. You should continue your education by attending workshops even after receiving your license.
Series7 Exam
The Series 7 Examination is for anyone who wants to work in securities industries, including stockbrokers. The exam takes six hours to complete and consists of 250 multiple-choice questions. The test is divided into two three-hour parts, and you need to get a passing score of 70 percent. The exam includes questions about stocks, bonds, options, limited partnerships, and other investment subjects. According to theFINRAwebsite, to qualify for the exam, you much be registered and in good standing with the Financial Services Authority (FSA) in the United Kingdom, fulfill the prerequisites outlined by the Chartered Institute for Securities & Investments (CISI), and have a sponsorship from a FINRA member.
A licensed stockbroker requires understanding how to deal with stocks and other securities, as well as dealing with individuals and businesses. Though a formal education is not a requirement, it helps to get all the knowledge you can to be an effective broker. Because it is a highly-regulated career, you need to make sure you get the proper licenses and stay up to date in the financial world. By learning all you can, you set the stage for a rewarding career.
