A Useful Guide to Become a Successful Stockbroker

There are over 2,394 stockbrokers in the United States, and many young people dream of going down the same road. While career length and location greatly determine how successful you’ll be, it’s possible to attain success at a young age,

The role of stockbrokers is gradually changing as more investors become autonomous, but many brokerages still hire for the position. Also, the job can be a launching pad for other careers, like financial advisor or planner. If you’re passionate about becoming an accomplished stockbroker, here’s how to do it.

Have an Inner Drive to Succeed

Many first-year brokers quit because the job can be overly stressful and requires long hours and lots of dedication. While brokers don’t have similar personality traits, successful ones have a strong desire to succeed and take rejection well. 

Most of your time will be spent on the phone, talking to prospective or existing clients about stock ideas, so you’ll need to be patient and resilient. You’ll also need great sales and communication skills. Additionally, you must be an expert at explaining complex ideas without seeming condescending.

Get a Good Education

There are no formal educational requirements for becoming a stockbroker, but most firms hire candidates with at least a bachelor’s degree in finance or business. Having a major in these subjects will give you a competitive edge. It’s even better if you have a master’s degree because you’ll have learned additional finance skills that will make the job easier.

Get Licensed

To practice, every stockbroker must obtain standard securities licenses. The most important exams are FINRA’s Series 7 and Series 63 exams. Once certified, you can buy and sell stocks, mutual funds, bonds, and other securities. You can also offer financial advice legally to their clients.

Many brokerage firms also required their employees to take (and pass) the Series 3 or Series 31; and Series 65 or Series 66 exams. It’s worth mentioning that these exams are tough. If a brokerage firm sponsors you, you’re expected to pass.

If you’re self-sponsored but don’t have enough money to pay for all the exams, you can get a title loan and use your car as collateral. Search for the best title loan places, and you’ll get the money you need.

Choose a Good Brokerage Firm

The best brokerage firms have structured training programs to ensure their employees learn the ins and outs of the industry, sales techniques, and time management. When searching for a potential employer, consider firms that match your personality and preferences. For example, a smaller specialty firm may be more ideal for an amateur broker than a large global brokerage. 

Grow Your Client Base

Combine proven ways of finding brokerage clients and creative strategies to build clientele. Successful brokers consistently take action. Here are some popular ways to find clients:

• Talking to brokers in your market and complementary markets
• Talking to vendors in the commercial real estate industry
• Making cold calls to clients
• Asking for referrals from relatives or friends 
• Joining relevant organizations, like the local chamber of commerce 
• Sending newsletters

Featured Image: Freepik

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