How to Get a Job as an Equity Sales Trader

The marketplace offers lots of opportunities, even for people with little experience.

Since the 2008 economic crisis, Wall Street has generated a lot of attention from people trying to break into the industry. The U.S. Securities Exchange Commission (SEC) has tightened regulations regarding equity trading, but opportunities still exist for people interested in buying and selling stocks and other securities as a career.



The best place to become an entry-level equity trader is at a proprietary trading company, also known as a "prop shop." Such a company hires people to trade equities and other securities. The only capital risked is the firm's capital.

Instructions

1. Pass the Series 7 examination. Anybody who wants to have a long career in the financial sector needs the correct certification. The Financial Industry Regulatory Authority offers a variety of exams, and people pass them can work in the sector. As you advance in the industry, you will need more certifications, but passing the Series 7 exam results in the basic certification that allows you to trade customer accounts. Some prop shops don't require a Series 7 because they don't have customer funds. Some prop shops that require a Series 7 certificate could help cover training costs.

2. Research the job opportunities in the marketplace. Even if you don't know much about the equity market, a lot of companies want to see that you did your homework and you are interested in the industry. A lot of prop shops hold open houses and information sessions, and attending them will allow you to gather information. Research various companies because each company is completely different. Not only do some firms require different certification, but they also have different payout plans.

3. Open a retail trading account. Although many proprietary firms are not too demanding when it comes to experience, they like to hire people who know something about the equity market. If you don't want to open a real account and trade your own capital, then you can open a demonstration account, which is referred to as a "demo account." Trading in your retail or demo account will teach you some basic concepts of trading equities, such as the bid ask spread and order types.

4. Learn to play poker. That may seem funny, but it is one of the best ways to learn about the financial markets. Poker and financial markets share a lot of similarities, and some recruiters might even ask about your poker skills. A major similarity between the two is emotional response. A trader or a poker player who can't control his emotions can quickly get in trouble.

5. Prepare to start at the bottom and work your way up. Most prop shops limit their risks concerning new traders by limiting their buying power. Although an equity trader starts out making small trades, she can increase her buying power. A trader who demonstrates that she is responsible can quickly gain valuable experience in the marketplace.

Tips & Warnings

• Don't worry about lack of experience. Most proprietary trading companies like to make sure all their traders are on the same page, and so they provide some training. Some firms might charge for the training instead of asking for a trading deposit.

• During the interview process, find out whether or not fees are associated with the trading firm. Some firms charge their traders for their trading platform and data expenses. They might not provide traders with trading rebates.

References

• Financial Industry Regulating Authority (FINRA): Qualifications FAQ -- Examinations
• Financial Industry Regulating Authority (FINRA): FINRA Registration and Examination Requirements