Education

How to become a stockbroker

If you are intending to become a stockbroker than this guide is for you. Being a stockbroker is one of the most lucrative occupations financially and it also has a lot of prestige attached to it.

A stockbroker must typically buy and sell stocks depending on the market's trends and the orders placed by the buyers and sellers. Of course, senior stockbrokers will have a lot more responsibilty in that many will manage stock portfolios on behalf of their clients. They will shoulder the responsibilty of deciding the kind of stocks or investments that best suit their clients with profit in mind.

For UK readers, the following link is a guide on how to become a stockbroker in the UK .

Various routes to becoming a stockbroker

The route to becoming a stockbroker is quite wide ranging. The qualification criteria is quite divarse, ranging from internships for undergraduates to even those going through change of career altogether. Most stockbroker firms are on the look out for bright graduates to train.

Series 7 Exam

The most important part in becoming a stockbroker in the US is the obtaining of a legal license. These stockbroker exams are organized by the National Association of Securities Dealers. The most important one is the General Securities Registered Representative Examination (Series 7 exam).

The passing of this exam is crucial in your recognition as a stockbroker by the authorities. In many states some additional exams are required, I'm talking here about the Uniform Securities Agents State Law Examination (Series 63 exam) and about Uniform Investment Advisor Law Exam (Series 65 exam) which can help you further still in obtaining a legal licence as a stockbroker.

Acquire practical skills

The stockbroker job though doesn't include the certification alone. There are many other steps you can follow in order to become a stockbroker. Investment clubs is probably the best way to get the feel and expertise for the role of a stockbroker.

The need to make decisions on the practical application of actually buying and selling stocks will enhance your knowledge of the role. It will also give a more integrated analysis of how things work and bring in more information and knowledge about the markets.

These clubs typically offer a lot of investing opportunities for the informed stockbroker. The know-how and the analysis provided can be priceless. In time these places can transform into a Mecca for a stockbroker.

Math oriented degree

Of course if you wish to pursue a career as a stockbroker, education is very important. There isn't really a limit on how early you can acquire stockbroker skills. In high school you can follow courses of mathematics and economics, afterwards you can go to one of the many colleges that provide useful courses for a stockbroker wannabe such as statistics and advanced economics. Further still you can achieve a masters degree in a relevant field that will surely give an edge as a stockbroker.

A good way to secure a job early as a stockbroker is to find a training job, you could even be rewarded with a scholarship and most of the time the company that sponsored you will recruit you into their ranks as a stockbroker.

The experience gathered through this fashion can truly prove priceless in your stockbroker career. It is experience and intuition that matters most, not necessarily the diplomas you gather.

If you can make it and become a stockbroker then you can lead a life of financial security. This industry is known for its huge payouts in bonuses.

The importance of communication

Part of being a stockbroker is the need to communicate really well. If you are a shy type then you can forget about your dreams of becoming a stockbroker. A stockbroker is typically highly confident and needs to communicate with buyers and sellers and with fellow brokers.

As a final tip, once you secure a job as a stockbroker you should be aware that most companies that hire rookie stockbrokers don't expect that more than twenty percent of them to remain in their positions for the long term. Take this into account and prepare for a very harsh and tough initiation as a stockbroker. Once you secure a job, update you knowledge of regulations because they are constantly changing and keep follow business news on a daily basis. Sky is the limit!!