Only brokers with banks are paid a salary and may share in any bonus money availabe at the end of the year. Brokers with regular brokerage firms do not usualoy receive a salary, they are paid a commission based on the amount of business their assigned customer generate.
Brokers also share in part of any mark=up (mark- downs) that are generated with the trading done by the proprietory trades done by the firm in servicing customers
In the US - You need to be an employee of a Broker/Dealer so they can sponsor you in order to become a licensed stock broker.
Firms usually want college graduates, but it is not really necessary nor really a requirement but many firms like it and make it their requirement. Bank broker/dealers usually want all the sales reps to be college graduates.
Your college major is not important, (No courses in the Academic world prepares you to be a broker). But since your coming into the world of Finance, some of the more helpful majors would be Finance, Accounting, Economics or Statistics,
You should be good at math and have a decent idea about the stock market.
You should be good at selling, and it would help if you have an outgoing personality.
So if you‘re good at sales, or have a good sales background in place of a college degree, you’re part way there.
Try to get with any major brokerage firm they will put you through an in-house training program, which is primarily getting you ready to take the necessary test for licenses. You will need a Series 7 which is a General Securities Brokers test, and a Series 6 which is just for state approvals.
Most brokerage firms, except bank B/Ds, will put you on salary and once you have passed the test, they will slowly take you off salary and put you on commission basis pay out. Banks will usually keep you on salary.
MLOU- RAY – stock brokers DO NOT trade stocks, no well managed firm would permit a stock broker to trade. The last thing I would let any of my brokers do is to “trade” especially with the firm’s money
Stock broker trades stock in the stock market usually for a company. Unless you are some sort of stock genius, you will need to at least get a bachelors degree in either finance or accounting. They can make great money but are known to have horribly stressful careers.
Stocks and shares are traded on stock markets. Stocks and shares can only be traded by market participants or members (such as stock brokers). So if a member of the public wants to buy/sell shares then he/she has to go through a stock broker.
There are many positions in stockbroking like trader, analyst. portfolio manager, institutional salesman etc. It depends on your nature, like any job. It can be very well paid.
Stockbrokers have gone through massive changes in the last 30 years. More changes are probable.
Stockbrokers deal with individual investors and take their orders for buying and selling stocks, bonds and mutual funds. Many stockbrokers are on commission (or bonus loaded salaries based on production)
Discount internet stockbrokers have taken a big share of the stockbrokers income. I use Fidelity and they charge $8. per transaction. If you can compete with that, you're a better man than I, Gunga Din.
you can make a comfortable living, but be prepared to work like a fiend for a solid decade.
I'm taking economics and we're talking about stock brokers. And I don't understand what a stock broker does, or how you become a stock broker, or how much money a stock broker makes. I was also wondering if you have to go to college to become a stock broker, and if its a good career??
