How to Become a Stock Broker in New York

You do not become a stockbroker immediately after graduation; the process involves a series of steps.

A stockbroker works in brokerage firms and buys and sells shares on behalf of other people to increase their net worth. Stockbroker employment is expected to grow 25 percent by the end of 2016. Depending how the market performs, a stockbroker can make a substantial amount of money for the client or lose a large sum of money. It take a knowledgeable and qualified person to work in the stock market, especially with the recent financial collapse and the recession. If you choose to enter this field, you should be aware of a few criteria.

Things You'll Need

• Educational Path
• Practical knowledge
• Resume
• Sponsor

Instructions

New York is known as the financial center of the world.

1. 

   Many colleges and universities offer degrees in business and finance.

   Plan your educational path. You can begin acquiring skills as early as high school by taking courses in math, economics and business. A college degree was not always necessary to become a stockbroker, but now that the field is more competitive, a bachelor's degree in business, accounting or economics is required, especially by larger firms. As the industry depends on an accurate rapid flow of information and up-to-date decisions, you must possess knowledge in leading-edge technology. Courses in computers and information technology are also important in the brokerage field. You can also pursue a master's degree in business administration (MBA), which is a requirement for high-level positions in the securities industry.

2. 

   Be verbal during your interview, stockbrokers need a "take-charge personality."

   Prepare a resume. Emphasize your studies and work experience, whether in finance, economics or business. Present an aggressive and professional image at the job interview. Prospective employers will be evaluating your overall attitude.

3. 

   The market can change drastically within hours, so you must be able to access information accordingly.

   Develop effective communication skills. You will be communicating with customers on a regular basis, so you must be able to communicate effectively. You must have a positive attitude and be able to make quick and accurate investment decisions.

4. 

   Inestment clubs can provide valuable knowledge and analysis.

   Acquire practical skills. For instance, you can join an investment club, where you will learn how to compare investment opportunities, deal with stocks and shares and analyze results.

   The knowledge and analytical skills provided by these clubs is priceless

5. 

   The training process can take up to six months.

   Find a brokerage firm that offers training. On-the-job training is offered by some brokerage firms. You can start as a junior broker. On-the-job training prepares you to pass the Series 7 Exam and the State Regulatory Exam. When a brokerage firm hires trainees, they intend to retain some of them.

6. 

   Once you pass the exam, you are qualified to buy and sell all securities products.

   Take and pass the Series 7 Exam. To take the Series 7 Exam, you need to find a sponsor. If you cannot find a sponsor willing to pay for your study, look for a firm that will sponsor you for a fee. The most important requirement for a stockbroker is to have a license. The New York Stock Exchange requires that aspiring stockbrokers take the Series 7 General Securities Registered Representative exam given by the Financial Regulatory Authority (FINRA). The three-hour Series 7 Exam consists of 250 multiple-choice questions. It is taken in two parts, each consisting of 125 questions.

Tips & Warnings

• Read financial newspapers, such as Financial Times, to familiarize yourself with the market and investment trends.

• Expect a high stress level and a very competitive work environment. According to the

• Bureau of Labor Statistics, companies often hire a substantial number of recent graduates with the expectation that a large percentage will "wash out" during the grueling early months of training and building a client base.

References

• Securities Exam Preparation
• FINRA Industrial Professionals
• U.S. Dept of Labor

Resources

• Article by Dona DeZube, Finance Careers Expert-Roll the Dice as Stockbroker