Trade Broker Training
A trade broker, or stockbroker as it is more commonly referred, typically handles investment transactions for people or corporations. Brokers usually work on a commission basis, so it is probably not the best career path for those who desire a steady salary. For those who seek excitement and unlimited potential, however, there are few other career options that can compete with becoming a trade broker.
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NASD Series 6 and 7
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Trade brokers give investment advice and buy and sell various types of investment products. Trade brokers must be licensed by the National Association of Securities Dealers (NASD). The type of license needed depends on which type of products a broker will be buying and selling for her clients. A NASD Series 6 license allows her to sell mutual funds, but she will not be permitted to sell other types of securities. An NASD Series 7, however, will allow her to sell both mutual funds and almost every other type of investment product, including stocks and bonds.
Testing for the Series 6 and 7 is administered at various locations around the country by the Financial Industry Regulatory Authority (FINRA). Textbooks and other tutorials that help prepare for testing are widely available online.
NASD Series 63, 65 and 66
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Those who pass the licensing test for Series 6 or 7 are considered Registered Representatives. However, there is one more hurdle to overcome before you can be considered a trade broker in the United States -- you must also acquire a Series 63 and 65.
The NASD Series 63 test covers state-specific laws and regulations and the Series 65 covers additional laws as well as ethics and understanding of specific investment products. It is also possible to take the Series 66 test instead, as it is equivalent to a Series 63 and 65 license.
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Sales Training
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A major portion of a trade broker's career life is spent on sales. The vast majority of stockbrokers are required to find their clients willing to invest. Most companies have their own training programs. Typically, learning the trade broker trade is done on the job through company seminars, workshops and employee mentoring programs.
Product Training
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Trade broker sales products are generally complicated. In order to become an effective salesperson, a broker must have an in depth understanding of the products he sells so he can explain them to his clients. Study materials for the licensing exams will provide the broker with a foundational knowledge of most investment products, but most companies sell products that are unique to them. Thus, most companies that hire new brokers also offer product training to their employees in addition to sales training.
Certification
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It is not always required, but many companies encourage trade brokers to engage in additional training and to seek certification in order to advance. Certification programs, such as Certified Financial Planner (CFP) and Certified Financial Analyst (CFA) offer more in depth product training to brokers and these designations can potentially give clients more confidence in your abilities and advice.
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