Investment brokers are also known as stockbrokers, serve as a coordinator between a buyer and seller for managing portfolios of client as well as providing guidance related to investment from time to time. In case of this job, for each transaction, they take or charge commission and sign bonuses.
According to the Bureau of Labor Stats, investment brokers are a kind of commodities, securities as well as financial services sales agent. This is actually a full-time work. You can earn a lot being in this profession but the pace of this job is not only fast but at times is full of stress too. Several stock brokers reside and have job in New York, it won’t be wrong if we say that for New York stock exchange it is just like a home.
Some Basic Job Requirements
One of the basic requirements is to have a bachelor’s degree before you become a stock broker. It’s up to you whether you want to pursue a degree in finance, business, economics or accounting.
There is no requirement of master’s degree unless you want any higher position within the organization. Most employers look for candidates having a MBA degree or Master in Business Administration. In other words, when you have done your MBA, then you may get advancement in your career, bonuses as well as raise in your pay.
Earning a degree in Finance-Related Subject
Majority of investment brokers hold a bachelor’s degree either in finance, business, marketing, economics or accounting. It is important for a future investment broker to search for such programs that offers special courses in investment and financial planning. Some subjects that these courses usually cover include economic theory, portfolio planning, client communication, risk analysis, tax treatments, Series 7 exam preparation as well as application or using of financial software. If you have an advanced degree then it’s a plus point in this aspiring profession, so future stockbrokers should do Masters of Business Administration or even if he can take master’s program in any field that is related to finance.
One should take maximum benefits from an MBA program. Future investment broker should always choose an MBA program based on curriculum created jointly with the Certified Financial Analyst Institute.
Taking the Licensing Exam
It is important for becoming stockbroker to complete the (Series 7) General Securities Registered Representative Examination for achieving license. There are 250 questions in this six-hour-long exam and the Financial Industry Regulatory Authority (FINRA) administers it.
Moreover, it is essential for all practicing investment brokers to get registered with FINRA, which further gives rules and regulations for expanding your opportunities in education.
Future investment brokers can enhance their position in this profession by simply achieving status of Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA).
CFP is based on more than one step steps and the applicant must have a degree in bachelor’s, clear or pass an exam, and must have three years work experience in financial planning. Altogether five years may take for the applicant to complete all these formalities and later on being CFPs must keep on learning more by doing new courses of certification.
The level of CFA program is equal to graduation, The CFA Institute called Association for Investment Management and Research in the past accredits self-study options. The purpose of this program was to enhance investment strategy and portfolio management skills in candidates having a bachelor’s degree also least four years of work experience in field related to finance.
In order to appear for the CFP exam, it is important for candidates to know the topics of their exams given on the website of the Certified Financial Planner Board of Standards, Inc. you can get further information.
In case of both big and small type of brokerage firms generally they offer thorough job training to newly hired people. There are several full-time investment brokers who have been offered a job by firms after finishing their internship. For entry-level posts the requirement is to work for irregular as well as long hours, this is because the decision of stockbrokers depends on actual -time data in a market that experiences ups and downs. There is one more choice of career i.e. to become self-employed or work as a freelance consultant.
Investment Broker Pay Scale
As per the BLS, in May 2011 the average salary for stockbrokers per year was $72,000. When it comes to taking up a job of investment broker, do not ignore the training options that the firm is offering when you look at its starting pay. If you opt for an organization that offer you small salary in the beginning but there is possibility of good training like financing employee MBA program then there are chances of rapid growth in the career of stockbroker. With the increase in number of clients the investment can enjoy great deal of bonuses as well as commissions.