How To Become Investment Broker
Becoming an investment broker is a great way to start your career in the financial industry. There are many different ways to get started and you do not need any prior experience. The first step is to decide if this is the right career path for you, then determine what kind of broker you want to be. The next step involves getting your license and finding employment.
What Is An Investment Broker?
An investment broker is someone who helps people invest their money. They can also help investors find companies that may be interested in purchasing their stock. Investment brokers work with both individuals and businesses on a daily basis, making sure that they are able to meet their financial goals.
How Do I Get Started?
The first thing that you need to do before becoming an investment broker is make sure that this is the right career path for you. You should also consider whether or not it would be better suited for someone else or not at all (if so, then go back to my previous article titled “How To Become A Financial Adviser”). Once you have decided if this is something which interests you then it’s time to take action! You’ll need three things: education (which will require some time), experience (which will require
How To Become Investment Broker
Investment brokers, also called stockbrokers, act as liaisons between buyers and sellers to manage client portfolios and provide investment advice. They typically charge a commission for each transaction, and signing bonuses are common in this potentially lucrative career. All investment brokers must be licensed, and advanced degrees and certification are usually required for higher-level positions.
Career Requirements
| Degree Level | Bachelor’s degree |
| Degree Field | Business, finance, accounting, economics, or a comparable discipline |
| Licensure/Certification | Licensure and certification are available |
| Experience | On-the-job training is common; advancement is typically commensurate with experience |
| Key Skills | Customer-service, communication, detail-oriented, initiative, and strong math skills |
| Salary | $64,120 (median annual wage for securities, commodities, and financial services sales agents as of May 2018)* |
Sources: *U.S. Bureau of Labor Statistics
Now, let’s check out the career steps for investment brokers.
Career Steps
Step 1: Earn a Finance-Related Degree
Most investment brokers have at least a bachelor’s degree in business, accounting, finance, marketing, or economics. Prospective investment brokers should look for programs that provide courses or concentrations specializing in financial and investment planning. These courses typically cover portfolio planning, economic theory, tax treatments, client communication, Series 7 exam preparation, risk analysis, and the use of financial software.
Step 2: Take the Licensing Exam
All prospective stockbrokers must complete the General Securities Registered Representative Examination (Series 7) to be licensed. This six-hour-long examination is administered by the Financial Industry Regulatory Authority (FINRA) and consists of 250 questions that test basic competency in buying and selling investment options.
Some states and employers also require stockbrokers to complete the Uniform Securities Agents State Law Examination (Series 63) to meet additional securities trade qualifications. Additionally, all practicing investment brokers must register with FINRA, which provides rules of regulation and continuing education opportunities.
Step 3: Complete Certification
Aspiring investment brokers can increase their employment and career advancement prospects by pursuing Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) status. CFP is a multi-step process that requires applicants to have a bachelor’s degree, pass an exam, and gain at least three years of full-time experience in financial planning.
The CFA program is a graduate level, self-study option accredited by the CFA Institute, formerly known as the Association for Investment Management and Research. This program was specifically designed to provide specialized skills in investment strategy and portfolio management to candidates with a bachelor’s degree and at least four years of finance-related experience.
Additionally, be sure to meet the requirements. Certifying agencies typically have standard educational requirements that all potential applicants must meet. For example, to sit for the CFP examination, individuals are advised to be thoroughly familiar with the exam topics that may be found on the Certified Financial Planner Board of Standards, Inc. website.
Step 4: Choose a Company
Investment brokers should carefully consider a brokerage firm’s starting salary in terms of the company’s training benefits. A firm with a smaller starting salary but with more training options, such as financing employee MBA programs, can offer faster stockbroker career advancement. As investment brokers build their client bases, they should enjoy sizable commissions and bonuses.
Step 5: Earn an Advanced Degree
Earning an advanced degree can provide an edge in this competitive profession, so prospective stockbrokers should consider a Master of Business Administration or a master’s program in a finance-related field. To get the most from an MBA program, prospective investment brokers should consider an MBA program that has curriculum developed in conjunction with the Certified Financial Analyst Institute.
To recap, with a postsecondary program in finance, licensure, and certification, an investment broker can earn about $64,120 a year to act as a liaison between buyers and sellers, manage client portfolios, and provide investment advice.
