Are you fascinated by the stock market and would like to know the requirements for becoming a stock advisor? Love reading the charts and interpreting the same to determine the direction the market is going? Perhaps, you like to help people invest in the stock market.
If any one those fits into your fancy, then it is high time you pursued a career in the stock market as a stock advisor. Also referred to as a stockbroker, the work of the stock advisor is by no way easier, but it is doable. You just need to have a bachelor’s degree, work for someone, apply for a position and pass the licensing exams.
That right there is a synopsis of what it takes to become a stockbroker in the United States. If you want to find out the other details, continue reading this article.
Who is a Stock Advisor?
Also called the stockbroker, the stock advisor is someone that buys and sells stocks for investors. Technically, the stock advisor is the individual that manages the stock portfolio of the clients, in this case, the investors.
In recent times, the job description of the stockbroker has become advanced to cover the employment by brokerage firms who these individuals help to buy, sell and trade the stocks issued by corporations.
Is a Stock Broker a Good Job for Me?
Beyond trying to help your clients make good returns on their stock holdings and attracting an inflow of clients to the brokerage firms; do you really find fulfillment in the job?
To determine if being a stock advisor is a better career path for you, here are a couple of things to consider:
- Your knack for strategic investments in the stock market.
- Your willingness to help stock enthusiasts invest their money and earn consistent returns over time.
- As a stockbroker, you get to earn commissions for each stock sold. This is usually calculated in the form of a percentage representation of the value of the stock transaction you undertook on behalf of the client.
Getting Started as a Stock Advisor in the U.S.
As we mentioned, there are four major steps to take for you to become a certified stockbroker in the United States. Let’s look at some of them:
1. Have a Good Educational Background
It is common for stockbrokers to be asked to present their bachelor’s degree before being allowed to proceed to the next stage.
But we would say that the first educational qualification to have been the high school diploma, which qualifies you to earn the bachelor’s degree.
Below are some of the things you need to know about the requirements for the bachelor’s degree:
- Duration: the duration is important and is usually four (4) years. However, some colleges offer accelerated programs that might not span that much.
- Discipline: it is touted in some quarters that no specific degree is required. However, since you will be dealing with finance and managing other people’s money tied to stocks, you don’t want to be a novice at the job. Thus, consider taking to any of the following fields of study: accounting, business, finance or economics. If you prefer not to, other options include sociology and psychology because you would need those skills to make sound investment decisions.
2. Become an Intern
Every great person you see in the society started from somewhere, and most times, that “somewhere” is at the “feet of someone else.”
Now that you are out of the university, it is time to make one major move to becoming a stockbroker in the U.S. It starts with submitting to training and learning as much as you can. The long and short of it is to become an intern with either a brokerage firm or an investment company.
As an intern, you get to learn the basics of the job, while building your new connections along the way. Who knows, one of those connections might link you up to your first client – and then the next and the next.
3. Apply for a Job – and Sponsorship
You are just two (2) steps away from becoming a certified stock advisor practicing and offering your service in the United States.
With your internship experience, it could be a great idea for you to start up your own firm. But sometimes, it is better to work for someone else, especially considering that you are new in the industry.
One of the best ways to go about this is by applying for a job and you must be strategic about it. The idea is that the first employer you have should be willing to sponsor you to get accredited by the Financial Industry Regulatory Authority (FINRA). The accreditation also comes with passing the licensing exams, which is the last step.
To increase your chances of killing two birds with the same stone (working and getting sponsored for the FINRA licensing exams), consider using these strategies:
- Apply for a job with a FINRA-regulated financial company or any other relevant regulatory authority, but FINRA is better.
- Make sure that you meet the criteria for the position you are being hired for. While some FINRA-regulated firms hire up and coming stockbrokers, others go for the experienced ones. The best way to navigate the hurdle is to update your resume accordingly to match the current job description and requirement.
4. Take and Pass the Licensing Exams
With the sponsorship by your employer, the FINRA-regulated financial firm, you now stand a chance to take the licensing exams.
Here are a couple of things you need to know about these exams:
State Requirements for Becoming a Licensed Stock Advisor
Almost all the states in the U.S. require new stock advisors to take specific licensing exams, especially the FINRA Series 7, Series 63 and Series 66 licensing exams. The Series 7 exams are solely dedicated to quizzing you on your knowledge of trading securities.
The list of the other licensing exams you must take and pass includes:
- Securities Industry Essentials Exam
- General Securities Representative Exam
Concluding Thoughts
You can see that it is easier to become a stock advisor in the U.S. using just four (4) steps and requirements. The major hurdle is to come out with better grades after your bachelor’s degree studies, being diligent during your internship days and finding a placement with a FINRA-regulated financial firm, which will have the company sponsoring you for the FINRA licensing exams.
Once you scale these exams, you are on your way to finding a good job with any of the top brokerage firms in the United States.
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