How To Become A Stock Broker: A Comprehensive Guide

March 13, 2023

Introduction

Are you interested in becoming a stock broker? If so, you’ve come to the right place. Becoming a stock broker is an exciting and rewarding career path that can provide you with financial security and independence. In this blog post, I will provide an overview of what it takes to become a stock broker, including the educational requirements, licensing exams, and job outlook.

Educational Requirements

The first step in becoming a stock broker is to obtain the necessary education. Most employers require that applicants have at least a bachelor’s degree in finance or economics. However, some employers may accept applicants with degrees in other fields such as accounting or business administration. Additionally, many employers prefer applicants who have completed coursework in securities analysis and investments.

In addition to obtaining a degree, aspiring stock brokers must also complete certain courses related to the securities industry. These courses are typically offered by universities or professional organizations such as the Financial Industry Regulatory Authority (FINRA). The courses cover topics such as investment strategies, financial markets, and securities regulations. Completing these courses can help prepare you for the licensing exams required for becoming a stock broker.

Licensing Exams

Once you have obtained the necessary education and completed the required courses, you must pass two licensing exams administered by FINRA: Series 7 and Series 63 (or 66). The Series 7 exam covers topics such as stocks, bonds, options, mutual funds, taxation of investments, retirement plans, margin accounts, and more. The Series 63 exam covers topics related to state securities laws and regulations. Passing both of these exams is required for becoming a registered representative of any brokerage firm in the United States.

Job Outlook

The job outlook for stock brokers is positive due to an increasing demand for financial services from individuals and businesses alike. According to the Bureau of Labor Statistics (BLS), employment of securities agents is projected to grow 6 percent from 2019-2029—faster than average for all occupations—with an estimated 11,400 new jobs created during this period. Additionally, BLS data shows that the median annual wage for securities agents was $64,120 in May 2019—higher than average compared with other occupations in finance and insurance industries.

Conclusion

Becoming a stock broker can be an exciting career path that provides financial security and independence. To become a successful stock broker requires obtaining the necessary education—typically at least a bachelor’s degree—completing certain courses related to securities industry regulations; passing two licensing exams administered by FINRA; and having knowledge of investment strategies and financial markets. With an increasing demand for financial services from individuals and businesses alike comes positive job outlook for those interested in pursuing this career path—with higher than average wages compared with other occupations within finance/insurance industries according to BLS data from May 2019 ($64K median annual wage).I highly recommend exploring these related articles, which will provide valuable insights and help you gain a more comprehensive understanding of the subject matter.:www.cscourses.dev/do-stock-brokers-still-exist.html, www.cscourses.dev/algorithmic-trading-interactive-brokers.html