Requirements to Become a Broker
- Stock brokers and financial service professionals watch the DOW and other financial indices.stock market analysis screenshot image by .shock from Fotolia.com
A career as a stock broker or financial adviser can prove to be quite rewarding. According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary of brokers and other financial service agents as of May, 2008, was $68,680. Some brokers establish books of business that generate six figure salaries annually. The BLS is projecting average job growth in this sector through 2018. - Although there is no specific educational requirement to become a stock broker, most companies require a bachelor's degree in a business related field such as finance or economics. Some companies may even prefer a master's degree in finance, economics or business administration. Master's degrees in these fields can lead to high level positions within the securities industry; though they are not typically required by brokerage firms that are looking for professionals who can sells goods and services.
- The hardest part to becoming a broker is performing the licensing requirement that requires passing a regulatory exam known as the Series 7. The Series 7 is an exam that is comparable in difficulty to other well-known aptitude exams like the GRE and the LSAT. The primary difference is that it is geared specifically toward the financial services industry and its regulations and it offers no indication of aptitude as a financial services professional. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA). An additional exam is required within the state where you will be practicing as a stock broker. Depending on state requirements, you must take either the Series 63 or 66 exam, which is an exam akin to the Series 7 in difficulty. Training for these exams is extremely time consuming and will most likely require additional study materials and possibly the need to take preparatory courses. Some large brokerage firms, like Edward Jones Investments, hire candidates and pay them during the study period leading up to the exam in order to ensure their success. These companies usually provide their own training for the examinations as well.
- Because brokers sell financial products, many firms look for other, more intangible qualities, such as interpersonal communication skills, an upbeat personality, integrity and a strong commitment to succeed. Because the financial industry is heavily regulated by FINRA and the SEC, applicants for a position as a broker need to have a clean credit history (including the ability to document any possible credit problems) and a clean criminal record.
