Requirements for Investment Brokers
An investment broker is an intermediary between buyers and sellers of financial investments. In addition to from performing trades, the broker's role may range from offering minimal advice to full management of a client's portfolio. Requirements for setting up shop as an investment broker generally include an undergraduate degree in a relevant field, on-the-job training and formal licensure.
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Undergraduate Education
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There is no mandatory educational requirement for getting your start as an investment broker. It is even possible, if unlikely, to become one without university training. But prospective employers normally expect you to have at least an undergraduate degree in a relevant field: economics, finance, accounting or banking.
Further Degrees
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Obtaining a master's degree or Ph.D. may help you to gain more specialized and remunerative employment than is possible with only a bachelor's degree. If you know exactly what specialization you want to pursue while still an undergrad, it may make sense to proceed straight to graduate work. Otherwise, it might be better to get your feet wet in the securities field first, and become better acquainted with the industry and its opportunities, before pursuing more advanced degrees.
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On-the-Job Training
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Before you send around your resume, inquire about educational and other requirements that prospective employers have for new hires, as these may vary from firm to firm. You do not need to be licensed as an investment broker to be hired by a firm, although you may not act independently as one until you are appropriately licensed.
A broker-dealer already registered with the Financial Industry Regulatory Authority, typically the company that hires you, must sponsor you for the relevant FINRA-administered securities exam. The company will help you to prepare for it. Once on board, you must file a U4 form through your company to register with FINRA.
General Licensing Requirements
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Licensing requirements depend on what sort of investments you wish to handle, and can also vary by state. The examinations are generally divided into the levels of Registered Representative and Registered Principal. For example, you would take the Series 7 or General Securities Representative exam to be licensed to as a registered representative. Then, to become a principal of a firm, you would take the Series 24 exam.
Special Licensing Requirements
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Your exact circumstances and goals determine what exams you must take. For example, if your firm is a member of the New York Stock Exchange it must comply with NYSE rules. Securities Exam Preparation Inc. notes: "The NYSE requires its members to have a work experience requirement before they place trades on their exchange--- this is why the NYSE member firms have training programs that their representatives have to complete (in addition to passing the Series 7 exam) before they are fully registered. In addition, if you have the Series 7 and later become a branch manager for an NYSE member firm you would sit for the NYSE's Series 9 and 10 exams instead of the FINRA (NASD) Series 24."
The Securities Exam Preparation website provides a comprehensive list of exams for securities licenses.
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