Hollywood movies like ‘Wall Street’ have immortalized the profession of a stock broker and catapulted it up the popularity charts. Movies have glamorized this profession by showcasing stock brokers driving fancy cars and partying with beautiful women. In reality, the job is hard work and can get very stressful at times. If you want to be successful in this profession, you will need excellent communication skills. Stock brokers work alongside financial analysts and their main job is to make sound financial investments on behalf of their clients.
Stock brokers can seek gainful employment with brokerage firms or investment management companies. They might be required to work long hours as they have to study the domestic and international stock markets. Formal training in finance related subjects like banking and accounts prove helpful, but employers value experience more than education. The mainstay of the job is to give sound financial advise to existing clients and attract new clients with high return investment options.
A stock broker is a finance professional having expertise in gathering information about stocks bonds, mutual funds, commodities, insurance plans and other investment avenues. Interpreting large quantities of financial data from the stock markets is one of the key job responsibilities. Stock brokers use advanced computing software to help them analyze information from the stock market, that helps them predict good investment options.
Interacting with clients over the phone or arranging face to face meetings for discussing investment options is the duty of the stock broker. They review their clients investment potential and suggest options that best suit their requirements. After the investments are made, a stock broker will monitor the investments and suggest the right time to buy or sell the stock options. In order to do this they have to develop a keen sense of the markets.
Job of a stock broker involves generating monthly and quarterly reports pertaining to the status of the investments and presenting it to the clients is one of their administrative duties. They will also give presentations and statistical data to the management detailing the transactions made in the stock market. Signing agreements with the clients as per the rules and regulations of the stock exchange is a requirement of this job profile.
Requirements to Become a Stock Broker
A bachelor’s degree in finance related subjects can get you a position as a stock broker if you have good selling skills. If you have a master’s in business administration (MBA) degree, employers will offer you better salaries. Understanding of the functioning of the financial markets and economic trends is a key requirement of this job profile. Aspirants will have to pass the General Securities Registered Representative Examination (also known as the Series 7 Exam) to work as a stock brokers. Up on successfully passing the exam they are also required to register with the National Association of Securities Dealers, Inc. (NASD). Many states require candidates to complete the Uniform Securities Agents State Law (Series 63) Examination or the Uniform Investment Advisor Law (Series 65) Exam.
One of the significant pieces of information is the salary figure. According to national statistics the average yearly salary of a stock broker is reported at $69,000. However, the salary range is quite wide with salaries starting at around $35,000 per year and going beyond $160,000 per year depending on the experience and employer type. Like most other professions, the job location also plays a big part in deciding the annual wages. People working in metro cities like New York earn higher pay packets than those working from rural settings.
To become successful as a stock broker you need to understand and analyze complicated financial data and make quick decisions. Having good mathematical skills and working knowledge of computers and finance related software is useful.