A Securities Career
How To Become a Stockbroker

Most investors—whether they’re individuals with a few hundred dollars or large institutions with millions—use securities, commodities, and financial-services salespeople.

Also called brokers, stockbrokers, registered representatives, account executives, and financial consultants, they perform a variety of tasks: buying/selling stocks, bonds, shares in mutual funds, insurance annuities, and other financial products.

Additionally, they provide advice on investments, estate planning and other financial matters. They also explain stock market terms and trading practices, advise on the purchase/sale of particular securities, and design client portfolios.

Characteristics of A Successful Stockbroker
Those who excel in securities tend to be:

• Well organized multi-taskers
• Skilled negotiators
• Confident communicators
• Independent and self motivated
• Computer-savvy
• Driven by high personal goals
• At ease with many types of people
• Comfortable with daily variety
• Able to cope with pressure
• Educated in business, economics and/or finance

A Day in the Life of a Licensed Stockbroker
Most securities professionals work in offices with access to “quote boards” or computers that provide information on continually changing securities prices.

When an investor wants to buy or sell a stock or mutual fund, the broker may relay the order through their firm’s computers to a securities exchange floor, such as the New York Stock Exchange.

Starting Out
Brokers must register as representatives of their firm with the National Association of Securities Dealers (FINRA). Before new brokers can qualify as registered representatives, they must pass an FINRA licensing exam (Series 6 or Series 7), and be an employee of a registered firm for a period of time.

New brokers spend a great deal of time learning the firm’s products and services and studying for exams to qualify to sell other products. Most employers provide on-the-job training to help brokers meet the registration requirements for certification. 

Starting out, brokers also spend much of their time prospecting for clients, relying heavily on telephone solicitation. They also may meet clients through business and social contacts. Some brokers even inherit retired brokers’ clients.

Unlimited Earning Potential
As a broker, you’ll typically earn a commission on the stocks, bonds, mutual funds, insurance, and other products you sell. Some firms also pay a draw against commission (a minimum salary based on commissions expected).

Since it’s commission-driven, the effort you put in—day in and day out—determines how much you bring home. It’s simple:  The harder you work, the more you make. The sky’s the limit!