How To Become an Investment Broker

An investment broker is a person who connects parties interested in buying or selling investments.Depending on the position, a broker can earn bonuses and a salary from their commission.Most investment broker positions require a bachelor's degree in finance.You will need to pass exams, register at both the federal and state levels, and work your way up from entry-level financial positions to become an investment broker.

Step 1: You need a bachelor's degree.

Economics, business, marketing and accounting can help prepare you to be an investment banker, even though finance is the most common choice.A field of study that prepares you to understand the risks and strategies of working with money is the most important.You should focus on mathematics, investment planning, computer programming, and economic theory.

Step 2: If you want to pursue anMBA, consider it.

A master's degree in business administration is held by many senior investment brokers.If you have new financial planning knowledge, you can work with bigger clients and make more money.Your chances of being hired will improve if you have anMBA.You can focus on your knowledge if you go back to school for a graduate degree.You can learn more about computer programming for financial products and services or specialize in a specific commodity.Some companies offer help to their brokers.Companies that pay for a portion of tuition and/or support going to school while working should be looked at when evaluating job offers.

Step 3: You should strengthen your social skills.

In order to be successful as an investment broker, you must be able to carry a conversation and contribute to positive social interactions.You can add to your formal education by joining a debate team.Take classes in drama or public speaking.Many people become more confident in social situations with the help of the organization Toastmasters.There are great networking opportunities with professionals of all ages.If you choose to do so, you should take part in some sort of social activity that requires you to work through different types of people.

Step 4: Prepare for the Series 7.

The Series 7 is one of the main exams.You have to be sponsored by an established financial institution in order to take the exam.You can make yourself more attractive to institutions that might sponsor you by working on test-prep material or taking a course specifically designed to help prepare you for this test.The organization that administers the test is the best source of test prep material.Practice exam questions and study outlines can be found on the website.Someone in your department can help you find a course.Some of the courses can be taken online.

Step 5: There is an internship at a brokerage firm.

Investment brokers usually start out with an internship, which gives the company the chance to get to know you.Learning the day-to-day process of being an investment broker requires starting at the bottom and working your way into positions with greater responsibility.If the firm that hires you as an intern feels that it's a good fit, they will sponsor you to take the Series 7, after which you may be hired on full time.

Step 6: You can apply for jobs based on your career goals.

Investment brokers will have different opportunities at different financial institutions.Make sure the position you apply for works with the securities you're interested in.If you're looking to generate new leads for a large firm that manages large transactions, look into institutions like Merrill Lynch or JP Morgan.Investment brokers make most of their income from their commission on the accounts they help create.If you'd prefer a position that paid a more consistent salary and is interested in more of the service side of handling investments, apply with an institution like Fidelity Funds.

Step 7: Don't be impatient.

A junior position is likely your first position as an investment broker.In order to get senior status, you will need to prove your worth.When searching for a job at the entry level, look for firms that train their brokers well and promote from within.Consider more than just a starting salary.Training and opportunities for promotion are often more indicative of a good position than a starting salary.

Step 8: You have to register with the Financial Industry Regulatory Authority.

The rules and regulations for training brokers are written by the Financial Industry Regulatory Authority.Talk to your supervisor or sponsoring firm if you want to register for the tests.This will allow you to take the licensing exams.Series 7 is a general financial test, but there are many tests that will allow you to work with certain types of commodities, increasing your likelihood of getting hired and sponsored to take other exams.If you pass any of the tests within the next two years, you should be able to work with a particular firm on the appropriate commodities.

Step 9: Take the Uniform State Laws examination.

This exam is required by some employers and states.You will need to be sponsored by a broker to take the exam.If you pass this exam, you will open up employment opportunities.The Series 3 on commodity futures is one of the exams that do not require a sponsor.You will be able to immediately produce for a financial firm if you take these exams.You can get hired and sponsored to take the Series 7 if you pass them.The Series 3 exam costs $115.00, the Series 65 costs $135.00 and the series 63 costs $98.00.

Step 10: Take other trading exams.

You can register as a specific type of broker by taking other tests.If you want to give clients advice on mutual funds, take the Series 6 exam.You can work on corporate securities after passing the Series 62 exam.Take some of the exams before the exam.If you are willing to take the exam, you can get a job.

Step 11: The exam is called Series 7.

The General Securities Registered Representative examination is written by the New York Stock Exchange.You can work as an investment broker if you pass the Series 7.The tests are taken on a computer.The fee for the Series 7 exam is $290.00

Step 12: You need to complete federal and state registration.

To become a registered investment broker, you need to submit to a background check and get fingerprints.Follow FINRA's advice on how to do it.You have to register with the Securities Commission in your state.You will need to have passed the Series 63 in order to do that.The National Futures Association requires you to pass the Series 3 exam if you want to work with commodity futures.

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  3. Pass the exams.
  4. Pass the final exams.