June 18, 2024


Mad about real estate

How to Become a Stockbroker

The question of how to become a stockbroker all comes down to your interest in this line of work and your dedication to gaining enough expertise in the field to skillfully buy and sell stocks or other financial instruments for clientele. The salary potential for stockbrokers is high, but it all depends on how hard you work and how successful you are since this is largely a commission-based job.

Most people who are considering how to become a stockbroker want to know the degrees needed, if any, to qualify for this type of position. While many stockbrokers have bachelor’s degrees or even master’s degrees in subjects ranging from business to English, there is actually no educational requirement beyond high school for this job. It may make you more desirable as a candidate for a job at a firm and instill trust in clients if you have a formal education, though, so go ahead and get a college degree in the subject that interests you most. Economics and business are the most closely related subjects, but stockbrokers have all sorts of degrees.

What is more important than a degree is getting licensed. This is one of the most important pieces of career information for future stockbrokers. You will need to take exams to get licensed, and the requirements may vary from state to state. The exam is called the General Securities Registered Representative Examination or Series 7 Exam and is conducted by the National Association of Securities Dealers. You will also most likely have to complete an internship before being hired on at a firm. They will want to know that you have knowledge of consumer protection laws, best procedures and a general understanding of securities, stocks and various administrative procedures.

Although working on commission can be risky, and the field is competitive, stockbrokers have excellent earning potential and career options, although you may need to do side work as an advisor or real estate agent to find clients and build your knowledge of the financial world. Stockbrokers may earn anywhere from $40,000 to over $130,000 annually depending on various factors.