Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Whenever news about the stock market makes the headlines, a new wave of speculation arises about the people who work behind-the-scenes when these market movements occur.
Wall Street stockbrokers and traders remain elusive for most people. In fact, they may as well be wizards behind curtains with special powers to influence the economy. There are a lot of misconceptions about securities traders and the people employed by banks and hedge funds on Wall Street. They're all millionaires who walk around New York City in fancy suits, confidently guessing where stocks will go as they rake in the big bucks, right?
While there is a little truth to these assumptions, for the most part, these are myths based on media depictions of people employed by the financial industry. Here are seven of the most commonly-held myths about Wall Street. The stock market is complex to navigate, and not everyone makes it out with more money than when they started.
This test is believed to be one of the toughest licensing exams given, but to succeed on Wall Street—all myths aside—the bare minimum is having the knowledge and experience.
If you want to become a registered broker, the first step is to pass the Financial Industry Regulatory Authority's Series 7 exam. The average stockbroker doesn't make anything near the millions that we tend to imagine.
In fact, some lose a lot of money through their trading activities. The majority of companies pay their employees a base salary plus commission on the trades they make. New traders and trainees generally earn an annual salary before they start to reel in a suitable client base. The more clients they book, the lower the salary gets. That's because they're supposed to earn more in commissions. But just how much can they earn? One thing to keep in mind is that the professional life of a stockbroker is long.
Many tend to put in long hours—more than the traditional hour workweeks. This means they may find themselves working well into the evenings and weekends, too.
Hours may vary based on the clients they serve. And since they may serve clients in international markets , some traders may have to start their day before the sun rises or may have to work overnight. When you imagine a stockbroker, do you picture someone wearing a white shirt with a tie and a fancy suit? The reality is that many traders and brokers would never stand out in a crowd. And their working conditions are less glamorous than you think.
Many of them work from an office cubicle, spend lots of time on the phone, and wear casual clothes. It's also true that many stockbrokers work from home—far from any trading floor or corporate office. Either find out from your employer or decide for yourself any other licenses you need to earn, and then prepare for them like you did for Series 7 and Series Additional Tips for Success If you want to become a licensed stockbroker, here are some extra tips to help you succeed: If you are still in college or are about to enter college, consider majoring in financial planning, business, finance, economics, or accounting as an undergraduate and possibly continue these studies in graduate school.
Complete an internship. Many brokerage firms and investment banks accept summer interns. Internships help you understand the career and, in some cases, they can serve as an extended job interview.
Find a job in a brokerage, asset management firm, or bank. Make sure you can pass a background check , which typically consists of a credit check and a criminal background search. Many employers will use these checks as a condition of employment. A practice exam closely replicates the degree of difficulty, weighting, and format of the real exam, and you receive a score with diagnostic feedback. The better you perform on a practice exam, the greater your likelihood of passing your licensing exams.
Stay calm on exam day. Plan to arrive at the testing center more than 30 minutes beforehand so that you have plenty of time to check in, find where you are supposed to go, and collect your thoughts. Related: Definitive Guide To Internships. To become a licensed stockbroker, you must be sponsored by a Financial Industry Regulatory Authority registered firm or other regulatory authority. Obtaining a sponsor generally means being hired by an investment bank or brokerage firm.
To become a stockbroker, you must develop and be able to demonstrate a deep understanding of financial markets, accounting practices and regulations. The Series 7 exam consists of multiple-choice questions that must be completed in minutes. It must be combined with a separate Securities Industry Essentials Exam that consists of 75 questions and lasts minutes.
Other exams may be required for the stockbroker to trade certain things. Some states also require certain exams, such as the Series 66 or Series You'll have to check to determine which exams are required in your specific state. Here are a few of the most frequently asked questions about being a stockbroker:. Stockbrokers can become very successful over the course of a career. One of the major pros of this job is that you earn a base salary that can be significantly enhanced by commissions and bonuses.
A stockbroker needs a number of both hard and soft skills, including:. Related: Hard Skills vs. Soft Skills. According to the Bureau of Labor Statistics, employment for commodities, securities and financial services sales agents is projected to grow four percent from to , which is approximately the same rate as all occupations. Regionally accredited schools earn accreditation through an agency that only reviews schools in a particular region. Nationally accredited schools receive accreditation from an agency that oversees schools across America.
Typically, employers view degrees from regionally accredited schools as more prestigious than degrees from nationally accredited schools. Some scholarships reserve funds exclusively for students who attend regionally accredited schools. Programs can also earn accreditation.
The Accreditation Council for Business Schools and Programs serves as a top programmatic accrediting organization for business and finance programs. High-earning stockbrokers know how to communicate with clients and help both businesses and individuals experience financial gain.
Professionals need hard and soft skills to achieve success. Soft skills are harder to quantify than hard skills. Stockbrokers need soft skills in organization, active listening, interpersonal communication, and strategic thinking. Most stockbrokers improve these skills through on-the-job experience.
Hard skills can be easily measured. Stockbrokers need hard skills in accounting, data forecasting, and financial reporting. Most individuals learn these skills through coursework. Stockbrokers must demonstrate their hard skills by passing a series of licensing exams. Stockbrokers must also know how to use stock monitoring software and graphing software.
Self-employed stockbrokers must also know how to successfully market their business and build a client network since this job is mostly commission-based. Stock brokers have numerous credentials available to them. Some of the exams and certification available include:. To succeed in this field, stockbrokers must commit to lifelong learning and network with peers.
Keep reading to learn about helpful resources for stockbrokers. These organizations host annual events, publish journals and newsletters, provide exclusive member benefits, and help professionals stay current on industry advancements. Consisting of various chapters all over the country, the NAS facilitates the sharing of information between companies, stockbrokers and analysts.
The NOIP is tasked with improving the regulatory setting so that all investment professionals may benefit. The STA is a trade organization which advocates on behalf of security professionals. The STA provides educational and lobbying resources for its members. The SEC is the leading regulating agency for investments.
The SEC also works to protect investors and the integrity of capital markets. Learn everything you need to know about attending plumbing school, and find a program near you on our list of the best programs. If you want to become an HVAC tech, attend a program that teaches what you need and get you hired. Depending on the program, a rad tech degree usually takes two years. You'll typically need an associate degree to become a radiologic technologist. Read on to find the best radiology tech programs.
How to Become a Stockbroker Staff Writer. West Virginia Wisconsin Wyoming. Step 1. All stockbrokers must earn a bachelor's degree to practice. But to earn admission to a bachelor's program, individuals need a high school diploma. Some colleges accept applicants with a GED. Step 2. Earning a bachelor's degree is one of the most crucial steps to becoming a stockbroker.
Learners typically need four years to complete a bachelor's degree, but this number varies based on credit requirements and personal course loads. Some colleges offer accelerated programs for full-time students. However, most colleges do not offer specific stockbroking degrees. For this reason, many aspiring stockbrokers pursue a finance or business major.
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