Becoming a stock broker and getting your stock broker license requires a lot of study and preparation. Though it is often thought that you need a college degree to become a broker, this is actually not the case. Many stock brokers do indeed have a college degree and one can only help you, it is not a necessity for the position. There are, however, many intricate steps and exams you must pass in order to become a licensed broker. Keep in mind that becoming a stock broker requires a very specific type of person.
First and foremost, you must be good with math. Trading stocks requires a lot of price analysis where you are looking at numbers and creating formulas throughout the entire day. If math is not your forte, maybe becoming a stock broker is not for you. You also need to be risky. Trading stocks is a tricky game and you have to balance your returns with your inevitable losses. Everybody takes loses in the stock market, however brokers are in control of other people’s money as well, so the losses can weigh on you much more. It is a high pressure position, but one that could provide you with a long and lucrative career.
Though you don’t need a college degree, having one will only better educate you on the mathematical intricacies of being a broker. Taking courses in applied mathematics, such as statistics or calculus, will better prepare you for what lies ahead. If you are in a position where college is still ahead of you, then you will be best served majoring in economics, finance, or business. These degrees are often parlayed into jobs with brokerage firms.
Once you have some education underneath you, you need to build your resume with on-the-scene jobs. A great idea is to start off with an entry level internship. You may be fortunate to find one that pays, however even a non-paying one will provide you with unbelievable training and experience. Get to learn stock trends and security valuation. Also, being involved in an atmosphere that deals with the trading of stocks on a daily basis will open you up to situations you were not aware of.
It is also very important that you start your own portfolio. People want to invest their money with someone they know is intelligent and who makes smart decisions. No one will invest with someone who won’t invest their own money. You should start developing your portfolio early on and allow it to grow and diversify. The better your portfolio, the better you look as a prospective broker and the more likely you are to sign clients.
For most states, in order to become a broker you need to pass two exams, the Series 7 and the Series 63. The Series 7 is an exam that tests your knowledge of general securities and is what allows you to be a Securities representative. The Series 63 is what allows you to solicit your securities, which is the actual trading being done on the floor. Essentially, the combination of these two exams accounts for the main aspect of the stock broker position, which is why passing them is so crucial. This is what you absolutely need in order to finally obtain your stock broker license.