Many people, who are already employed in different professions, dream of taking up a career in stock broking. A midlife career change is an important decision that will affect your future and that of your family. The pros and cons need to be weighed and discussed with your family and friends, so that you will get their valuable advice and have their support.
The most important consideration is the reason why you want to become a stock broker. Being interested in making lots of money is not a good enough reason to make such an important change in your life. Are you genuinely interested in the stock markets? If you can honestly say that you find everything about the stock markets exciting, then you can consider making the switch.
Look for stock broker career information and seek career counseling before you finally decide to make a career change. Career aptitude testing will help you to decide if you have it in you to become a successful stock broker.
Some people prefer to go into property management, which involves maximizing the net revenues from property. In this field, there is a need for self-motivated people with problem solving skills, who can handle criticism.
The essential attitude, knowledge and skills.
Stock brokers need to be ambitious, have strong selling skills and be able to handle frequent rejections. New stock brokers have to be ready to work for long hours to find customers and to establish themselves.
Stock brokers need to have excellent interpersonal skills and the capacity to communicate with confidence. Employers look for mature, self-motivated people, who have been successful in their careers and are capable of working independently.
Stock brokers should be good negotiators and be comfortable dealing with different types of people. They must be well organized and be able to handle a variety of tasks, while under pressure.
Qualifications in finance, economics or business can be an asset, though they are not essential. Most stock brokers are graduates and the larger companies insist on this, though graduation is not an essential requirement for becoming a stock broker.
You will need to get career training to gain the knowledge and skills necessary to function effectively as a stock broker. In the United States, you have to get a license by passing the General Securities Registered Representative Examination and may also be required to post a bond.
You have to work with a brokerage firm for at least four months, to be eligible to take the examination. In many states, people are also required to take the Uniform Securities Agents State Law Examination.
A career change is an important decision and you need to take your time to weigh the positive and negative aspects, before you take the plunge. Making sure that careful considerations are given now to build your future will make your journey to become a stock broker fun and smooth.
What are the Risks and Rewards of Being a Stock Broker?
And what does it take to succeed as a stock broker? Do people excel as stock brokers long term or is there a high degree of "burn-out?" What is the average annual take home for a stockbroker and how exactly do stock brokers differ from traders? Answers from stockbrokers would be especially appreciated.
The most important thing you need to become a successful stock broker is people who have millions of dollars to invest with you as their broker.
I worked as a broker for a while. We had a group of 40 people start at the same time. We were give a few weeks to study for the Series 7. If you didn't pass, you were fired. Only 3 failed so 37 of us carried on. Within 6 months, all the rest were fired but 3 of us.
The reason we weren't fired…we knew a few wealthy people willing to put big bucks with us.
If you don't know people like this with about 5 million to get started, you won't make it past 6 months.
And really, why would someone want to give a new broker with no experience that kind of money.
It's really just a sales job, and a tough one at that.
Good luck.
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Risks: stressful, volatile job; just like any sales-commission job would happen to be.
Rewards: potential for high income, again just like with any successful sales job.
To succeed, you need to have a business degree, a good sense of buying and selling products, and good "people skills." There's potential for long-term success if you put in the time, work smart and manage it right. Because it's usually a commission-sales job, you're basically in business for yourself, even if you work for a brokerage firm.
Annual take-home is probably about $40K starting out, and it can go straight up from there – again, depends on how much time you put in and how much you do with it.
Different from traders in that brokers usually manage funds and other investment vehicles, whereas traders handle individual stocks on the SE.
Good luck.
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There are two types of stockbroker. Well educated type, and the quick thinker market trader type. It is a long term profession, there are people in their 70s still working.There's no average. You have to earn enough for it to be worthwhile your company to house you . I would say minimum £150k gross. You will never know the top rate because those sort of brokers are very tight-lipped. Also if you can get the business, it is just as easy to do a trade worth £1m as it is for £100. Some brokers are salaries + bonus others are 1/2 commission. Commission is roughly 1%
Stockbrokers are usually dealing for their own clients and use dealers (or traders) to execute the trades in the market. Burn out usually occurs in the money market or option markets. Risks are in compliance and usually the broker has 100% liability to his clients losses or non-payment. Although in law this would probably be 50%
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