Becoming a broker is a great career move, but it is also a very responsible one. It requires hard work, dedication and commitment. It also takes patience as it takes time to build up your customer base and establish a good reputation within the industry.’
how to become a broker in Florida
To learn how to become a broker in Florida, you must first understand the process by which you become licensed. There are three main branches of real estate in Florida: brokerage, salesperson and community manager. The difference between each of these roles is explained below.
What is a stockbroker?
A broker is someone who buys and sells goods on behalf of others.
Stockbrokers are no different…
…they buy and sell stocks and other securities on behalf of their clients.
Their commission comes from making the transaction for their client. These clients can be individuals or institutions.
The word “stockbroker” probably conjures the image of someone from one of the Wall Street movies, taking calls on a noisy trading floor and talking a mile per minute.
While Hollywood has made the career seem like all glitz and glamour, the reality is that being a stockbroker involves a lot of long days and perseverance.
A Day in the Life of a Stockbroker
A stockbroker’s day starts early…
In order to be ready to speak with clients once trading starts, they must show up hours before the stock market opens to prepare for the day ahead!
Once trading begins, they contact their existing clients to make investment recommendations based on their clients’ portfolio.
In order to give proper investment advice, a stockbroker must have…
A strong understanding of the stock market
The ability to analyze a portfolio
But if you are getting commission regardless of how your clients portfolio performs, who cares?
Well, it works like this…
The better advice you give, the more money your client makes.
The more money your client makes, the more trades they will do with you.
The more trades your client does, the more commission you make.
And ideally your clients will recommend you to their friends!
That’s right – it is not all about buying and selling securities when you are a stockbroker.
Without clients to do transactions for…
…you won’t be making any commission!
A new stockbroker rarely enters their career with a list of clients who want to give them their money.
In the first few years, the majority of a stockbroker’s time is spent growing their portfolio of clients.
How does one grow their portfolio?
How can you find clients?
For a new stockbroker, finding clients can be a daunting task.
But think of it this way…
You must have at least one person in your network that needs help investing. Additionally, every person in your network must have at least one person in their network that is looking to invest.
So, what’s the best way to find these prospects?
We have a few tips for you…
Cold call prospects
Leverage your network from your hometown, college, and previous jobs
Send a newsletter to your LinkedIn contacts that gives advice on the market
Give free seminars on securities to the public
You need to…
…put yourself out there, leverage your network and MAKE IT KNOWN that you are a licensed stockbroker!
But how do you get all this confidence to sell your brokering services?
Trust me, this will come later on once you join a firm and gain the experience. But for now, just pretend (we won’t tell).
What skills do you need?
The key to being a successful stockbroker (and with any career) is to provide value.
When you give value, you get value.
To build a solid client base, you have to be willing to put yourself out there.
