Stock Brokers Career Overview
Career Description
A Stock Broker invests in the stock market for individuals or corporations. Stock brokers often advise and counsel their clients on appropriate investments. Brokers explain the workings of the stock exchange to their clients and gather information from them about their needs and financial ability, and then determine the best investments for them.
Common Work Tasks
- Meet clients through business and social contacts
- Join civic organizations and other social groups to expand their networks of possible clients
- Discuss terms of trade with investors and relay that information to the trader
- Teach adult education investment courses or give lectures at libraries or social clubs
- Connect businesses that need money to finance their operations or expansion plans with investors who are interested in providing that funding in exchange for debt or equity
- Sell their advisory services to help companies set up issuing new stock or bonds, and then sell the securities they issue to investors
- Work by telephone, calling customers and their agents to discuss new stock and bond issues
- Execute buy and sell orders from clients
- Negotiate prices with other agents
- Trade stock on an electric network
Other Job Titles
Stock Brokers are also known by other titles, including:
- Retail Investor
- Securities Agent
- Stock Trader
- Commodities Sales Agent
- Financial Services Sales Agent
Education, Training, and Experience
Education and Training
Most stock brokers have a bachelor’s degree in business, finance, accounting, or economics, although this is not necessarily a requirement. Many firms hire summer interns before their last year of college and those who are most successful are offered full-time jobs after they graduate.
Most employers provide intensive on-the-job training, especially for entry-level employees. While college coursework is helpful, most firms have a specialized business model which employees must learn. New employees must also come to know the large number of products and services offered by most firms. Trainees in large firms may receive classroom instruction in securities analysis, effective speaking, and the finer points of selling.
Certification and Licensure
Brokers must register as representatives of their firm with the Financial Industry Regulatory Authority (FINRA). Before beginners can qualify as registered representatives, they must be an employee of a registered firm for at least 4 months and pass the General Securities Registered Representative Examination—known as the Series 7 Exam—administered by FINRA. The exam takes 6 hours and contains 250 multiple-choice questions; a passing score is above 70 percent.
Most States require a second examination—the Uniform Securities Agents State Law Examination (Series 63 or 66). This test measures the prospective representative’s knowledge of the securities business in general, customer protection requirements, and recordkeeping procedures. Most firms offer training to help their employees pass these exams.
Experience
Many employers consider personal qualities and skills more important than academic training. Employers seek applicants who have excellent interpersonal and communication skills, a strong work ethic, the ability to work in a team, and a desire to succeed. The ability to understand and analyze numbers is also especially important. Because securities, commodities, and financial services sales agents are entrusted with large sums of money and personal information, employers also make sure that applicants have a good credit history and a clean record. Self-confidence and an ability to handle frequent rejection are important ingredients for success.
Salary
The median annual salary of a Stock Broker is $68,000. The top 10 percent earn more than $145,000 annually, and the bottom 10 percent earn less than $30,000 annually. Median earnings in the industries employing the largest number of stock brokers are:
- Securities and Commodity Contracts Intermediation and Brokerage - $102,300
- Depository Credit Intermediation - $60,300
- Other Financial Investment Activities - $118,260
- Nondepository Credit Intermediation - $67,010
- Management of Companies and Enterprises - $88,950
Job Outlook
- 2006-2016 Employment growth: 25%
- Number of new jobs created 2006-2016: 79,000
- Employment 2006 : 320,000
- Employment 2016: 399,000
*All information from the United States Bureau of Labor Statistics
