Is a Degree Needed to be a Stock Broker?
A stockbroker performs investment functions on behalf of a client, which can be an individual or a company. Brokers also offer clients advice on their current investments and on potential new investments. A stockbroker is an educated, licensed professional who provides knowledge to clients and is paid for services in a variety of ways.
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Degree
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A degree is not required to become a stockbroker. However, due to the extraordinary competition in the field, most stockbrokers have at least a bachelor's degree in such disciplines as economics, accounting, finance or business management. Working toward a college degree can be a pathway toward an internship with a stock brokerage firm. Many firms use internships to determine who they will hire after graduation.
License
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While you don't necessarily need a degree to be a stockbroker, you do need a license. The licensing process begins after four months of work with a firm, when potential brokers take a Series 7 exam, administered by the Financial Industry Regulatory Authority. Some states also require future brokers take the Uniform Securities Agents State Law Examination (Series 63), which licenses the broker to sell securities in that state. Future brokers are tested on consumer laws, securities laws and the Uniform Securities Act.
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Working Your Way Up
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Just because you've passed the test doesn't mean you're necessarily on the fast track to big money. With a license comes two years of training at a brokerage firm, where you'll learn about public speaking and sales techniques, and continue your education on the stock market. Trainees do this while working full time. At this point, having a college degree can come in handy, as many trainees will use the time to acquire an MBA, if they desire an executive position.
Job Description
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After a broker exits the training process, he can expect to perform all of the following duties: financial research that will benefit customers, provide advice on current and future investments, perform transactions for clients and build a client base. The final point is important to a broker's long-term success, and brokers attempting to build a client base use such tactics as cold calls, referrals and networking groups.
Pay
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In 2006, the U.S. Bureau of Labor Statistics reported that there were 320,000 stockbrokers in the United States. Brokers are typically paid through a combination of commissions, a portion of client profits and a regular salary. The median income for a stockbroker, as reported by the Bureau, was $68,500. The Bureau also reported that brokers can earn less than $31,000 and more than $145,000. In many cases, brokers are paid on the basis of their work, not whether they have a college degree.
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