If you’re good with sales and enjoy following financial markets, you may want to get a job in a brokerage firm. Becoming a stockbroker is one of the more straightforward career paths to take in the business world, and some firms don’t require brokers to have bachelor’s degrees.
Starting Out in a Brokerage Firm
To get hired at a big-name firm like Morgan Stanley or Merrill Lynch, you will need at least a bachelor’s degree in business or a related subject. To work in any firm as a stockbroker, you will need to become licensed by passing the Series 7 and Series 63 brokerage exams. After becoming licensed and certified, you will be legally allowed to trade securities for clients who pay you a commission on each transaction, according to the Bureau of Labor Statistics. As in a sales job, most or all of your money comes from commissions from your clients, and you will be responsible for finding clientèle after beginning at a firm.
Brokerage firms set high sales quotas for new stockbrokers, and workers who fall short of their quotas are let go. In recent years, quotas at most organizations have been relaxed to allow more people to succeed in this line of work, but many brokers are still fired at the end of their probationary period for not meeting sales quotas. This field is competitive, but it’s not so competitive that an average person can’t succeed with the right attitude. It’s much less competitive than the hedge fund or investment banking industries.
Succeeding as a Stockbroker
To succeed at a brokerage firm, you will have to come to work early to begin studying the markets for the day. When you have no clients, you will have to spend most of your time generating leads and making cold calls. If you stay positive and put in a strong effort, you will soon be able to schedule face-to-face meetings with clients to discuss investment strategies. Part of your job is to offer professional consultation for clients, and you will have to stay in touch with them throughout the day. Most firms don’t allow brokers to make trades for themselves while working for the firm, so you will probably only be able to make money through commissions.
Once you have an established list of clientèle, your job will be a lot more secure, and you’ll make considerably more money. You will also receive referrals from existing clients who appreciate the work you do. To initially get a job in a brokerage firm, you just have to send your résumé to the firm and schedule an interview. If you don’t have experience, many firms provide training for new brokers, and you will start out as a junior broker until you graduate from training.
Although this job isn’t as high-stakes as some of the more elite Wall Street jobs, it is still quite stressful and requires thick skin and a positive attitude. When you’ve been at a brokerage firm for many years, you may be able to move up to a management position and then, perhaps, to an executive-level position.
Related Resource: Stockbroker
Stockbrokers have been trading securities for hundreds of years in America, and it continues to be a reliable job with good pay. If you can get a job in a brokerage firm, you have a chance to establish yourself in the world of corporate finance.
