How To Earn A Stock Broker LicenseWhat Is A "Stockbroker", And What Do They Do?TV shows and movies portray stockbrokers as bazillionaires who own fancy cars, several homes, and jet around the world. In reality, this is far from the truth as most stockbrokers are regular, hard-working people who enjoy working with stocks, bonds, and mutual funds. Stockbrokers provide advice and recommendations to clients regarding the best times to buy or sell a stock, bond, mutual fund, ETF, and other financial instruments. While individuals can certainly purchase or sell these things themselves online - and often at a cheaper price - stockbrokers are considered specialists in the investing area and often have better information which can often be the difference between a profit or a loss on any trade. How To Become A Stock BrokerTo become a stockbroker, you must first earn a Series 7 license. Known as the General Securities Registered Representative license, this license allows you to sell a broad range of securities, such as stocks, bonds, mutual funds, variable annuities, options, direct participation program partnerships, and packaged securities.Those who get this license are officially listed as registered representatives by FINRA, but are more commonly referred to as stockbrokers. This page offers an overview on how to earn your Series 7 license and become a stock broker. It includes a brief overview of the Series 7 licensing process as well as information on your Series 7 exam. Steps to earn your Series 7 Registered Representative Stock Broker license: - Select a pre-licensing course format - seminar, webinar, online, or self-study - that best fits your needs
- Review your Series 7 study guide materials and other test prep materials prior to taking your securities pre-licensing course exam
- Since we include hundreds of Series 7 practice exams with our securities pre-licensing courses, take as many practice tests as you can
- Schedule, then sit for your Series 7 license stock broker exam
Please note that in order to earn your Series 7 license, you'll also need to pass the Securities Industry Essentials examination (aka the “SIE exam”) and take a FINRA Series 7 "Top-Off" exam. FINRA says that the exams are "corequisites," but that does not mean you have to take both at the same time. Instead, they mean that you can't earn your license without taking both, and you can take them in any order.You won't need a sponsorship to take the SIE exam but to take the Series 7 exam, you must be sponsored by a FINRA member firm or a self-regulatory organization (SRO). Firms apply for candidates to take the exam by filing a Uniform Application for Security Industry Registration or Transfer (Form U4). There is also an exam fee that is commonly covered by the sponsoring firm. Select A Securities Pre-Licensing Course Format That Best Fits Your Learning StyleSeries 7 pre-licensing exam courses and our Series 7 study guides are available in several formats, including seminar, webinar, online, or self-study. The plusses and minuses of each are listed below.- Seminar
The Seminar format generally means that you attend a classroom training at a specific date, time, and location - Live Webinar / OnDemand
The Webinar / OnDemand format generally means that you attend the training at a specific date and time, but do so from your home or office computer and not at a specific location like a hotel - Self-Study Online
The Online format generally means that you do your self-study training at your computer and at your own pace
Note: Regardless of the training format you choose, all provide numerous Series 7 test prep materials, including an extensive study guide and numerous sample questions, especially on the Series 7 options questions.How To Study For Your Series 7 Stock Broker License ExamStudying for your Series 7 Registered Rep securities licensing examination - aka earning your Stock Broker License - is easy with one of our pre-licensing training courses, because each, in addition to the great subject matter training, also includes numerous sample exams.Here is the recommended way to study for your FINRA Series 7 Licensing Exam to become a Stock Broker: - Select your preferred training format
- Read the subject matter content prior to attending or starting the training
- While doing so, make notes of any areas where you are unsure or need assistance
- Take the training. If via an Instructor-led format, be sure to get your Instructor to help you with any are of which you are unsure or need assistance (yes, options and mutual funds are difficult to understand, so don't feel shy about asking for help!)
- Schedule your licensing exam for about four weeks after you complete your pre-licensing class
- Study your butt off, not just on the training materials, but review as many of the sample exam questions as possible, especially the Series 7 options questions
- Use the four weeks prior to taking your stockbroker exam to review the materials and sample questions, but most of all take as many of the practice exam questions s as you can to get a feel for both the type and amount of questions you'll see
What Are The Series 7 Stock Broker Exam Requirements? What Is The Number Of Questions On My Series 7 Exam: 125 What Is The Series 7 Exam Format: Computer-based exam taken at a specified Testing Center What Is The Allowed Time to Complete My Series 7 Exam: 225 minutes What Is The Series 7 Exam Content: - Seeks business for the broker-dealer from customers and potential customers (7%)
- Opens accounts after obtaining and evaluating customers' financial profile and investment objectives (9%)
- Provides customers with information about investments, makes suitable recommendations, transfers assets, and maintains appropriate records (73%)
- Obtains and verifies customers' purchase and sales instructions; processes, completes, and confirms transactions (11%)
What Are The Series 7 Exam Requirements: You must be sponsored to take a Series 7 exam. Passing score of 72 is required.
What Are The Best Series 7 Study Tips: The best way study for your Series 7 test is to take a Series 7 class and make sure your review the Series 7 sample questions.Note: The pass rate for the Series 7 exam 65%, so if you really want to be a Stockbroker, make sure you fully understand the Series 7 exam requirements and study accordingly, especially on the Series 7 options questions because whether you plan to sell options or not, they are complicated and are on the exam. Included In Your Series 7 Study PackageAll of our Series 7 pre-licensing courses come with several study materials designed to help you pass your FINRA exams and become a stockbroker. The study materials for each package includes not only great training, but your study guide, multiple sample test questions, and videos to help you prepare for your stockbroker exam. | FAQs
To become a stockbroker, obtain a bachelor's degree in business, economics, finance, accounting or other related areas, complete an internship, gain sponsorship from a Financial Industry Regulatory Authority (FINRA) firm and pass the licensing General Securities Representative Exam.
How long does it take to become a stockbroker? ›
How long does it take to become a stockbroker? It takes at least four years to earn a bachelor's degree to become a stockbroker. Some stockbrokers may choose to earn their master's in business administration to enhance their credentials.
Can anyone become a stock broker? ›
Key Takeaways
Stockbrokers buy and sell investment securities on behalf of their customers. There are no specific education requirements for becoming a stockbroker, but many firms require that the applicant holds a college degree. The Series 7 and Series 63 licensing exams are required to become a stockbroker.
Do stock brokers make good money? ›
Stockbrokers get paid more than most workers. Estimates of the median combined salaries and commissions received by people who sell stocks and other securities to investors range from $62,910 to $149,664 a year.
Is being a stock broker hard? ›
More than anything, being a broker requires perseverance. Once you are able to build a solid client-base, then being a broker can be the dream job you probably imagine it to be. You analyze stocks, review your clients' needs, and make recommendations that fit the big picture.
Are stock brokers in high demand? ›
Employment of securities, commodities, and financial services sales agents is projected to grow 7 percent from 2022 to 2032, faster than the average for all occupations. About 40,100 openings for securities, commodities, and financial services sales agents are projected each year, on average, over the decade.
How stressful is being a broker? ›
You may face long hours, tight deadlines, high expectations, and intense competition. If you don't manage your stress and prevent burnout, you may suffer from physical, mental, and emotional health issues, as well as lower performance and satisfaction.
How to become a stockbroker with no experience? ›
To become a stockbroker, obtain a bachelor's degree in business, economics, finance, accounting or other related areas, complete an internship, gain sponsorship from a Financial Industry Regulatory Authority (FINRA) firm and pass the licensing General Securities Representative Exam.
Are stockbrokers still a thing? ›
Wealthy individuals and institutions continue to use full-service brokers who offer advice, portfolio management services, and complete transactions.
Is it illegal to be a stockbroker? ›
Stockbrokers have legal and ethical obligations to their clients and investors. Stockbrokers have to comply with federal and state securities laws for investment advisers. Some brokerages and investment companies may also have a code of ethics for their broker-dealers.
The trading environment is a fast-paced, high-intensity workplace and brokers may make more than 100 trades per day, depending on their approach. During trading hours, stockbrokers continually monitor the market and make assessments on trades, whether buying or selling, to maximise profit for their clients.
What are the disadvantages of being a stockbroker? ›
Competitive work environment. May require excessively long work hours. May have a hard time building a client base due to the rise of online trading.
What kind of brokers make the most money? ›
High Paying Brokerage Professional Jobs
- Broker. Salary range: $45,000-$131,500 per year. ...
- Commodity Broker. Salary range: $97,500-$112,500 per year. ...
- Energy Broker. Salary range: $60,500-$78,000 per year. ...
- Associate Broker. Salary range: $44,000-$73,500 per year. ...
- Stock Broker. ...
- Broker Assistant. ...
- Brokerage Clerk.
Do you need a degree to be a stockbroker? Most firms require applicants to have a bachelor's degree. There isn't a specific major requirement, but a degree in business is especially helpful. Earning a master's degree can be helpful for advancement, but it's not necessary.
How many hours do stockbrokers work? ›
If you're just interested in making money you won't get very far.” Stockbrokers spend their time in a fast-paced office, usually working from nine to five, unless they are just starting out or have to meet with clients. The new broker spends many hours on the phone building up a client base.
How smart do you have to be to be a stock broker? ›
A strong financial acumen, analytical skills, and an ability to make professional connections are valuable assets for anyone interested in becoming a stockbroker. While there is no set path to a career in this field, aspiring stockbrokers can take several steps that can prepare them to thrive in this role.
How many years does it take to become a stock trader? ›
Unfortunately, I know most people who want to trade the stock market for a living would prefer not to hear this, but it can take up to two years for anyone to become a full-time trader, if not longer. Knowledge is everything in the context of trading.
What is the average age of a stockbroker? ›
There are over 43,185 brokers currently employed in the United States. 36.2% of all brokers are women, while 63.8% are men. The average broker age is 49 years old.
Is it hard to be a stock trader? ›
Trading stocks may sound glamorous, but behind the scenes it's actually a lot of hard work and can involve extensive research. While it's not always easy, new investors can take a number of steps to begin investing successfully, including finding a style that works to grow their portfolio over time.
How much money do you need to have a stockbroker? ›
Most brokers don't require an account minimum to get started. Remember, though, that an account minimum is different from an investment minimum. An account minimum is an amount you would need to deposit into the brokerage account just to open it.
