The stock brokerage industry is one of the sought after career and as one of the pursuant candidate you need to have patience and the flexibility to counter any stress factor, there are some Stock broker requirements you must meet. Getting a coveted vocation like this demands you of great patience and ability to foresee long term opportunities with a rewarding Stock broker salary. To obtain such skills, you need to have essential training and gain experience through every occasional task associated with this career, importantly essential Stock broker requirements is a professional license for trading or other Stock broker services. Talking about getting a license, there are obligatory types of examinations in the United States you must take in order to become a successful Stock Broker.
There are several kinds but the basic and prerequisite exam is the Series 7 The General Securities Representative Exam (GSRE) which is Governed by FINRA ( Financial Industry Regulatory Authority) and Uniform Securities Agent State Law Examination. These two are the fundamental licenses to get your license to trade and be a limited registered representative. We will explore in-depth the Stock Broker Requirements that will help you become a Stockbroker.
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Requirements to get a Stock Broker License
Any Degree in Business
The first reason why people wanted to become a Stock broker is to have a high paying occupation and it is true that being a broker will allow you such opportunities. Getting a degree is the easiest way of getting a job related to a Stock broker work, in a fierce day and age education and a degree will always give you a upper hand, but a degree is not needed to become a Stock broker.
Remember, everything starts with applying in a firm and your credibility is your educational attainment. In fact an entry level position usually goes to a Bachelor Degree holder with emphasis on finance, economics, accounting and statistics, while the higher position goes to employees with an MBA. Education indeed is important in getting a sponsor firm which is essential in getting your license. Getting a degree is not necessary, but it will help you distinguish yourself against others, and so #1 in our Stock broker requirements list.
Testing and Background Tests
Your credibility is one of the basis for a client and firm to trust you. Even before getting hired you will be subjected to credit and criminal background check, where clients can run a broker check on you anytime. Item categories such as bankruptcy, tax liens or levies or even a minor traffic violation will progress to disqualification. So make sure to have a clear record. It is a must to have transparency during your interaction with your clients especially that a large sum of hard earned money is involved.
Get a Sponsor Firm
Once you are employed in a firm then you can request for sponsorship and there are many examinations like Series 7 that may require you to have a sponsor. You may request it from the firm you are employed with, this could be done after 4-6 months of training. Take note that firms provide you training packages during hiring. For some their preparation for getting a sponsorship starts during college days and during summer they apply for internship that may lead to employment as long as they perform well. The best option to graduate as a junior Stockbroker, and is one of the most important points in Stock broker requirements.
As soon as your college days stop it does not mean the end of knowledge. Being a Stock broker means constant self-education by review either in refresher courses, online tutorials or through manuals and guides. This will help you prepare to for the examination and keep you aligned with to the new policies in case there are changes or updates. Make sure you expose yourself to the industry itself by going through seminars. Always increase your knowledge and push yourself to pass a range of Stockbroker exams.
Apply for the Examination
Any person who is engaged to a business firm (member of FINRA) including regular employees, branch managers, salesperson and officers are all qualified to apply for the license, it is part of Stock broker requirements to pass these exams. Ask the firm you are engaged with to apply for a form U-4 filing through the Web CRD system. The charges vary depending on the examination type. The firm covers the examination charges and they notify FINRA through the web CRD system.
Technically, as mentioned above, there are several types of Stockbroker licenses that you can get depending on your chosen specification, passing FINRA exams are important Stock broker requirements. It is your obligation as an aspiring broker to scrutinize which license you need to have before you execute the role to prevent any violations that may arise in the future and may negatively impact your professional career. Here are some of the tests you can get through U-form submission in FINRA.
- Series 7 – Includes all types of financial securities including stocks, bonds, mutual funds and other annuities and will grant the broker a license to trade.
- Series 63 – Next exam after the Series 7 and covers blue-sky laws. One of the two basic license requirements.
- Series 65 – A license to be a Registered Investment Advisor and a right to use a professional money platforms. Usually used when a Stock broker engages in giving advise to an individual.
- Series 66 – A combination of Series 63 and Series 65.
- Series 3 – A license to qualify in selling commodities and future contracts.
- Series 31 – iIn lieu of the Series 3 and to sell and managed future funds.
Finally get your Stock broker license
Once you have the two basic licenses, which are Series 7 and Series 63 you can then proceed to any apply and take other examinations that will supplementary licenses to specialize in other fields, such as being a stock advisor or online broker or bank Stock broker.
If you are good at buying and selling stocks then the Series 7 and Series 63 is good enough for you. These are the standard Stock broker requirements for stock trading, but it is recommended to continue taking more exams, as the more exams and qualifications you take the higher your salary increases.
In case you are good in financial advice and in handling people then you may engage in the advisory services. For those who desire to belong in the higher ranks of the stock business community, then consider getting all the licenses to add to your resume, perform well and aim for a Portfolio Managerial position. And if the hustle and bustle of becoming a Stock broker is not for you, you can look to become a Financial Advisor.