Stock brokers buy and sell stocks and other securities on behalf of clients; those clients might be individuals or institutions. Stock brokers receive a commission which is compensation for making the transaction for the client.
Due to the complicated nature of investments and other factors, stock brokers must pass exams in order to become licensed to legally buy and sell securities. Ironically, despite the heavy regulation of the industry stock brokers work in, there are no required degrees someone must obtain to become a stock broker.
As long as the proper licenses are obtained, a stock broker can have only a high school diploma. However, most stock brokers choose to earn a degree in order to compete in a very competitive market. Stock brokers, through their legal mandate license and understanding of investments and capital markets, buy and sell stocks for their clients.
The better advice a stock broker can give the client, the more money the client will make and subsequently, the more trades they will make. Since stock brokers are primarily paid through commissions, the more trades, the better. Because this job requires close monitoring of the stock markets and the management of client money, it can be high-stress.
Stock brokers must regularly find new clients and research the markets so that they may give up-to-date investment advice. They must have a deep understanding of securities and commodities, depending on their specialization.
They must also be able to analyze company financial reports and provide recommendations to clients. Some stock brokers may not work with clients, but directly on a trading floor, buying and selling stocks pursuant to an order placed by a trader. Other stock broker may focus more on giving investment advice and helping clients find the best way to achieve their investment and financial goals. The median income of a stock broker is well above the national average. However, the actual income of a stock broker relies on many factors, including years in the business, the firm they are working for, their level of educational attainment, and geographical location.
These salary differences, based on geography, are highlighted in the below map.
Broker Or Trader: Which Career Is Right For You?
Those interested in a stock broker career are in luck. The need for stock brokers is growing even faster than the national average. The following map will show where the new stock broker jobs are expected to be. Here are the best steps to take to get there. There is no particular major needed, although something in the business or financial field is recommended. Common stock broker degrees include accounting, business, finance and economics.
Taking additional classes in statistics, mathematics and quantitative analysis will also be helpful.
Many brokerage firms and investment banks will hire summer interns to work at their offices. Depending on the firm, these internships can serve as extended job interviews where successful summer interns will have a significant advantage when applying to these firms for post-graduate employment. This is a solid way to receive the intensive training that some of the bigger companies require.
In order to sit for the necessary exams to become a licensed stock broker, an individual must be sponsored by a FINRA Financial Industry Regulatory Authority registered firm or other regulatory authority. Generally, this means getting hired by a brokerage firm or investment bank before getting licensed.
Brokers registered with FINRA must complete continuing education classes to keep licensing current. Practically all states require stock brokers to take and pass the Series 7 and Series 63 exams.
The Series 7 exam covers financial topics relating to the trading of many different types of securities and Series 63 also covers the trading of securities, but focuses on state rules and laws. Depending on the firm, additional licensing exams may be needed.
Some stock brokers may choose to pursue certification that, while not required, may enhance professional standing and earnings. Though there is no particular major that students should focus on to reach the dream of being a stock broker, some are more advantageous than others.
Here are a few options. A business degree will cover a wide range of business related courses; not only will graduates gain familiarity with securities and trading stocks, they will learn other aspects of a company, such as marketing, operations and ethics. Higher level courses a business major can expect to take include:. A finance degree is another great choice for individuals interested in working as a stock broker. Although slightly less comprehensive than a business degree, a finance degree will go more in-depth into subjects likely to be encountered by a stock broker, such as investments, risk management and financial analysis.
Best Undergraduate Degrees For Day Traders | Investopedia
Please note that the following list is not exhaustive and each school will have its own unique application requirements. Students will not only learn about more detailed and specialized business and finance related topics, but will take management courses as well. The MS in finance provides an opportunity for students to concentrate in a particular area of finance, such as capital markets and investment.
Unlike some other business graduate programs, a MS in Finance is more tailored to finance-related subjects and less on leadership. Individuals who want additional instruction on specialized areas of finance or want to improve their level of knowledge in a specific area so that they may continue to grow in that specialty.
Students will learn about different computer technologies that can assist in the process of financial analysis. The typical MBA program will last about two years, but sometimes less. The curriculum consists of a broad range of business, finance and leadership related coursework to prepare students for management and leadership roles.
An MBA program teaches students not only additional business and financial concepts, but how to think strategically to improve the financial status of a business as well as how to take on a leadership role within a business.
Individuals who ultimately desire upper level management positions are perfect for an MBA degree. The MBA also provides an excellent opportunity for students to establish long-term and valuable connections with fellow classmates and faculty. Students will examine business operations and recurring operations. Common issues and strategies will be reviewed. Students are taught accounting methods and processes that can be used for major business decisions. This class covers the overall process of how business decisions work to improve the value of the company or organization.
In this course, students will learn how to use statistical methods to measure business performance. Stock brokers can easily switch careers or engage in job duties that overlap with other financial professionals.
Potential professional areas for stock brokers can include with salary info from the Bureau of Labor Statistics:. Securities traders buy and sell securities on behalf of their employer in order to make money for that employer. Traders often make high risk, high reward trades that can be worth millions of dollars.
A personal financial advisor gives financial and investment advice to their clients. Their job can entail listening to the client to understand their investment and financial goals, then recommend financial instruments and investment strategies to best achieve those goals.
Financial analysts analyze and study financial trends and data in order to give investment advice to others, usually organizations. Financial analysts typically work in one of two areas: Financial managers do exactly what their title states: More specifically, they manage the financial goals of an organization.
Investment bankers act as intermediaries for business and investors. Businesses need to raise capital and often do so by selling securities. Investors are looking to buy securities in order to make a profit.
Investment bankers give advice to businesses to help raise the most money, and then help those businesses raise the capital they need. In order to be a successful stock broker, a particular set of skills, tools and credentials are needed.
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Some of these are essential while others are helpful for professional advancement and promotions. Stock brokers deal in securities and securities are measured and valued by numbers. Being able to understand what the numbers mean and how to manipulate the numbers through financial formulas is important.
Stock brokers must know their clients well, in addition to knowing what the market is doing. The smallest detail can make the difference between a great choice and an awful investment. Stock brokers trade securities on behalf of their clients. Often the stock broker will need to convince their client on a particular investment decision or be available to answer investment questions.
Stock brokers need to be willing to take the initiative to find new clients. Without the ambition to grow their client base, stock brokers will quickly find themselves pushed out of the business by up-and-comers. Stock brokers must be able to analyze securities, which is often a series of numerical values, and be able to glean useful information that they can pass on to clients or use to sell more securities.
Stock brokers have numerous credentials available to them. Some of the exams and certification available include:. Those who chose to become a stock broker might find that there are other appealing financial careers available.
Some of these promising careers include working as a financial analyst, a personal financial advisor, insurance sales agent, financial manager, or real estate brokers. These are the average salaries you might expect from related occupations:. Keep in mind that these are averages; the salary you make might vary depending upon the part of the country you live in, the state or even the city.
This salary comparison tool can help you narrow down the numbers to what you might expect in your particular area. The NADT is a professional association that works to improve the professional standing and education of day traders. Consisting of various chapters all over the country, the NAS facilitates the sharing of information between companies, stock brokers and analysts.
The NOIP is tasked with improving the regulatory setting so that all investment professionals may benefit. The STA is a trade organization which advocates on behalf of security professionals. The STA provides educational and lobbying resources for its members. The SEC is the leading regulating agency for investments. The SEC also works to protect investors and the integrity of capital markets.
There are a plethora of stock broker degrees and related educational programs that prepare individuals for a career as a stock broker. With so many choices, deciding which school and program to attend can be overwhelming. The following search tool is designed to narrow down a large list of schools and programs to something more manageable. Keep in mind that many stock broker programs might be hybrid — offering some online courses while others are required to be taken in person.
For more information on these potential online stock broker programs, check out the following schools.
Stay up-to-date with Learn How to Become. Join our email list to receive the quarterly newsletter. You're about to search for degree programs related to a career that you are researching. It's important to recognize that a degree may be required for a career or increase your chances of employment but it is not a guarantee of employment when you complete your degree. Select a Program Accounting Bookkeeping Business Administration Economics Finance Hospitality Management Human Resources International Business Management Management Info Systems Marketing Operations Public Administration Real Estate Retail Management Small Business Tourism Management.
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Search Finance Degree Programs What Does a Stock Broker Do? Stock Broker Careers In-Depth Stock brokers must regularly find new clients and research the markets so that they may give up-to-date investment advice.
Find a sponsor to take the necessary licensing exams. Higher level courses a business major can expect to take include: Introduction to Marketing Business Law Introduction to Finance Managerial Accounting. Valuation of Securities Investment Banking Business Quantitative Analysis Financial Accounting. Completion of an application Payment of an application fee GMAT or GRE test scores Resume or curriculum vitae showing pertinent work in finance Personal statement Letters of recommendation Official undergraduate transcript and graduate, if applicable Evidence of general knowledge in basic business and finance related courses, such as quantitative methods, accounting and financial analysis.Stock Trading Advice for Teenagers
Master of Science MS in Finance Time to complete: Who this program is good for Individuals who want additional instruction on specialized areas of finance or want to improve their level of knowledge in a specific area so that they may continue to grow in that specialty. Financial Computing Students will learn about different computer technologies that can assist in the process of financial analysis.
Skills Gained Ability to use financial analysis software Using computer models to calculate pricing for securities Understanding of how to use database software in financial analysis. Advanced Financial Concepts This course covers advanced and complex valuation models and financial decision analysis. Skills Gained Understanding of various investment valuation models Application of different valuation models to a variety of common situations Familiarity with investment firm investment decision making process.
Global Investments Financial instruments from other countries are explained in this class. Skills Gained Knowing how derivatives work Familiarity with various derivative risk reducing models Proper use of derivatives for a given investment approach. Risk Management This course will focus on derivatives as a means of deducing investment risk. Fixed Income Instruments Students will gain an overview of different types of fixed income investments and how they work. Master of Business Administration MBA Time to complete: At least 2 years Degree Requirements The typical MBA program will last about two years, but sometimes less.
Who this program is good for Individuals who ultimately desire upper level management positions are perfect for an MBA degree.
Business Operations Students will examine business operations and recurring operations. Skills Gained Utilization of tools and methods to improve business operations Examination of different perspectives of common business operations, such as logistics and management Understanding of terms and concepts used in business operations.
Strategic Accounting Students are taught accounting methods and processes that can be used for major business decisions. Skills Gained Knowledge of various managerial accounting methods for financial assessment Identification of business progress and performance using accounting concepts Ability to make business decisions based on accounting information. Business Planning This class covers the overall process of how business decisions work to improve the value of the company or organization.
Skills Gained Knowing how to formulate business decisions Proper business assessment techniques for determining areas in need of improvement Familiarity with business concepts and how they can affect business decisions. Microeconomics The basics of consumer demand and business supply models are presented in this course.
Skills Gained Understanding of supply-demand concepts Application of cost curves Using economic tools to improve business performance. Business Analytics In this course, students will learn how to use statistical methods to measure business performance.
Skills Gained Familiarity with multivariable regression Use of business statistical models Knowing how analytical models can assist in managerial decisions.
Securities Trader Median salary: Personal Financial Advisor median salary: Financial Analyst median salary: Financial Manager median salary: Investment Banker median salary: Numerical skills Stock brokers deal in securities and securities are measured and valued by numbers.
Attention to detail Stock brokers must know their clients well, in addition to knowing what the market is doing. Customer service Stock brokers trade securities on behalf of their clients. Ambition Stock brokers need to be willing to take the initiative to find new clients.
Analytical thinking Stock brokers must be able to analyze securities, which is often a series of numerical values, and be able to glean useful information that they can pass on to clients or use to sell more securities. Tools Desktop computer with multi-monitor workstation Laptop computer Multi-line telephone Financial analysis software Spreadsheet software Smartphone.
Credentials Stock brokers have numerous credentials available to them.
Stock Broker Degrees & Careers | How to Become a Stock Broker
Some of the exams and certification available include: Exams Series 7 required to be a stock broker Series 63 required to be a stock broker Series 65 to become a licensed investment advisor Series 66 combination of Series 63 and Certifications Certified Financial Planner Chartered Financial Consultant Chartered Financial Analyst. Stock Broker and Related Job Salaries. Stock Broker Salary Comparison Tool.
National Association of Day Traders The NADT is a professional association that works to improve the professional standing and education of day traders. National Association of Stock brokers Consisting of various chapters all over the country, the NAS facilitates the sharing of information between companies, stock brokers and analysts.
National Organization of Investment Professionals The NOIP is tasked with improving the regulatory setting so that all investment professionals may benefit. Security Traders Association The STA is a trade organization which advocates on behalf of security professionals.