The average stock broker salary may be in excess of $175,000 for retail stock brokers and about double that figure for institutional stock brokers, while the average investment banker may take home about $850,000 in pay and bonuses.
Traits of successful stock brokers
To convince clients to trust you with their business, you need self confidence, selling skills and the capacity to take repeated rejection. Stock brokers must have integrity, together with competence and professionalism, in order to succeed.
Employers prefer to hire mature people with good interpersonal skills, who are capable of working independently. Successful people from other professions, who want to make a career change, are also preferred by employers. Employers may like to do a background check to ensure that applicants have a clean record and a good credit history.
Essential qualifications and licenses
There is no stock broker requirement for any specialized qualification, though many stock brokers have a college degree. A college degree in business, economics or finance can be useful, and it may be necessary to have one, if you are interested in joining one of the larger brokerage firms.
Usually, people don`t become stock brokers immediately after they graduate. To become a stock broker, you need to get on the job career training with a stock broker firm and obtain a license, after passing the General Securities Registered Representative Examination. Before you can sit for this examination you have to undergo on-the-job stock broker training with a brokerage for at least four months.
After passing the General Securities Registered Representative Examination, you may also be required to take the Uniform Securities Agents State Law Examination in many states.
Unlike other careers, online career training or free career training for stock brokers cannot replace this mandatory period of working with a brokerage house and grants for career are not available for this practical training.
The Series 7 Stock Broker exam, which is administrated by the National Association of Securities Dealers (NASD), provides individuals with the qualifications needed to trade in various types of corporate securities, with the exception of commodities and futures.
Posting their profile on a stock broker listing on the Internet can help brokers to gain visibility and to get more business. These listings can help customers to make a stock broker comparison, before they decide to give their business to a particular broker.
Stock broking is an amazing profession and those who persist in their efforts to succeed, can look forward to success beyond their wildest imagination.
How To Become A Stock Broker
Not his height, physique or talks that impress you, but it's his intelligence, experience and services that attract any investor towards stock broker. The heart of stock investment guidance lies with stock brokers. Not only are they the catalyst to stock exchange but also provides a chance for any investor to have better returns on their hard earned money. Stock brokers are the people who wave the path to better investment prospects and support you to get through the winds and storms of stock market.
A stock broker offers many services to his clients in return of stock brokerage. However, this stock brokerage may vary from one broker to another. Some offers discount brokerages, other may offer cheap brokerage terms. Actually, competitive market keeps a check over the brokerage terms, thus, favours the investors.
As such there are many services provided by stock brokers, an overview is enlisted below:
?Keeps himself informed: it might sound amusing to you that keeping himself informed is no service that is provided to the client. However, it should be noted that keeping updated about the requirements of the client is the best service a stock broker can provide. Keeping an eye over market is their job and in case they seize any opportunity that suits the client's requirements, may help client to get the benefit of the opportunity.
?Keeps client informed: a stockbroker is the jack of all trades. He is well aware of the current market conditions and prospected market behaviour. Hence, keeping the client updated and warning for future helps the client to decide over his investments plans and work out on current investments.
?Confirming purchasing and selling of securities: the purchase and selling of securities is generally made by stock broker. Hence, notice of confirmation of deal, details of price and proceeds of transaction are provided by stock broker. Also, the future prospects details are detailed by every stock broker to his client. In case, the investor do not find the deal suitable, stock broker make arrangements to cancel the deal.
?Trading on behalf of client: there are certain special functions that are undertaken by any stock broker. In special accounts, named, discretionary accounts, the stock broker may trade in socks on behalf on the client. This type of service needs a trustworthy relationship between the client and the broker. Hence, maintaining positive terms with the client is other service provided by stock broker.
?Marginal trading: marginal trading is another special service provided by stock broker. It allows the investor to trade beyond his actual amount in the trading account. Using marginal account limit allows investor to make sale or purchase on the amounts which are currently not there in his account, though they are repaid within a fix period of time to the stock broker with additional interest amount.
?Insurance protection: it is another tool that secures the investors investments. In case the broking firm gets to financial difficulties or has to go for liquidation, the insurance protection plan to make sure that investors get their amounts of their accounts with share brokerage firm. Hence, the loss making share brokerage firm cannot compensate its loss with its clients.
Both Ayna Miah & Vijay are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Ayna Miah has sinced written about articles on various topics from Investments, Finances and Careers and Job Hunting. Ayna Miah is the author of the popular e-book "Stock Brokers: Who are they and what do they do".He knows stock brokerage industry secrets both inside and out. Now he wants to share his profitable knowledge with you.Discover the insider tips, techniques an. Ayna Miah's top article generates over 5400 views. Bookmark Ayna Miah to your Favourites.
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