What Education is Needed to Become a Stockbroker?

A stockbroker's position is lucrative but involves a lot of responsibility and hard work. Stockbrokers help others with their financial futures, and if they make a mistake on a trade, the cost to the customer often comes from the broker's commissions.

College

A college degree isn't required to become a broker, but it helps a lot. Most companies select those with a degree over those without one.

Series 7

The securities license required to trade stock is an NASD series 7. The test is a grueling, 6-hour examination with a break halfway through. Applicants need a company sponsoring you that holds your license if you pass.

Series 63

Not all states require that applicants have a series 63 to become a stockbroker. Most brokers take the test for additional access to clients in other states. Often called the "Blue Sky Laws" exam, it covers ethical behavior in the field and state regulations.

Insurance

Brokers sell many different types of financial products, including annuities. Annuities are only produced by insurance companies, and a life insurance license is required to sell them.

Series 65

Some companies want their representatives to have the NASD series 65 license and be an investment adviser. It covers economics and financial analysis, ethics and various investments.

Company Training

Most companies supply training to their newly hired individuals. This guarantees that their work force understands the computer programs they provide to do trading. It also aids the pupil in the process the company uses for trades.

References

• States requiring a series 63
• Test and Learn