Stock Broker Qualifications

Stock brokers are trained financial professionals who gather information about bonds, stocks, pension plans, mutual funds and other financial commodities. A stock broker is responsible for buying and selling stocks for individuals and corporations. Stock brokers then receive a fee for every stock that is bought or sold. In the U.S., the Securities and Exchange Commission (SEC) is charged with regulating stock brokers to ensure that they are not mismanaging money or committing fraud.

Education

A college education is important for anyone who wants to become a stock broker, and is required by some of the larger and more successful firms. While in school, students are educated in finance, business, accounting and economic theories and practices. Prospective stock brokers must become familiar and knowledgeable about economic trends and conditions involving the marketplace. Many firms hire interns the summer before their final year in college. Some may be offered positions after they graduate.

Traits

Working as a stock broker means creating a trust with clients, which enables them to invest their money and helps develop an ongoing business relationship. It is essential that stock brokers have high self-confidence, sales skills and the ability to take rejection over and over again. Stock brokers must be professional at all times, have strong interpersonal skills and the capacity to work by themselves.

Examinations

To become a stock broker and work for a brokerage firm, it is required that individuals obtain a license. The only way to obtain a license is to pass a series of exams, starting with the General Securities Registered Representative Examination. After completing the General Securities Registered Representative Examination, some states require that candidates take the Uniform Securities Agents State Law Examination. Finally, prospective stock brokers who pass the Series 7 stock broker exam obtain the legal ability to pursue this profession.

Experience

People don't become stock brokers just after they graduate college or pass their exams. To become a qualified stock broker, it is essential to receive on-the-job training. Some firms won't even allow their stock brokers to take their exams until they have trained for at least four months. Unlike other types of fields, there is no way to replace this type of training, and it gives potential stock brokers the information they need to know whether this is the right career for them.

Responsibilities

Just because an individual has the knowledge and skills to become a stock broker, it doesn't make them a stock broker. Anyone interested in becoming a qualified stock broker must find clients and build a customer foundation. Stock brokers can often meet potential clients through social and business contacts, or can join social groups and other civic organization to create and expand their network. Some of the larger firms give their stock brokers leads, while others can inherit clients from retired brokers.

References

• Bureau of Labor Statisics on stock brokers
• O*Net Resource Center on stock brokers qualifications
• Stock Broker exam information