One of the most lucrative careers in the stock trading market is being a stock broker. Brokers in the stock market are especially crucial when it comes to linking traders to the trading opportunities. As a stock broker, you will be responsible for handling the investment commitments of your clients. Wealth managers handle over $224 billion of assets every single year. If you are angling to get into this career, what do you need to have? Let us look at the education requirements for becoming a stock broker.
Minimum requirements
At the minimum, a bachelor’s degree is what counts as the basic requirement for a stock broker. For the most part, the degree need not be specifically related to the specific field in the financial world. Nevertheless, a degree that is related to business is advantageous. Apart from the degree, training is needed in the area of brokerage. There are many kinds of certifications offered for trainees and the relevant accreditation is crucial for landing a job in the market. There are exams that are specifically administered to candidates for a license.
Requirements in the career field
In addition to the minimum requirements, related qualifications in the investment management world are necessary. A stock broker is basically an agent who manages the investments of their clients. In this regard, knowledge in the areas of evaluating market risks is crucial for the career. Each client comes with different investment goals that the broker must analyze and determine whether they are sound. By trying to coalesce the financial goals of clients with practical market moves, brokers are able to earn their commission and also help investors earn revenue. Stock brokers make around 35% as commissions. A broker thus not only acts as a guide to online investing, but they also manage the market for themselves. There are thus some specific education requirements needed.
Specific education requirements for stock brokers
As stated earlier, the kind of degree that a stock broker should have must be related to the business world. In this regard, a degree in economics, business, finance or accounting would suffice. Some employers might ask for a master’s degree but this is generally not what the market needs at the minimum. There are some positions where a master’s degree might be crucial in the brokerage world though. In case you want to pursue a master’s degree, the Master in Business Administration (MBA) will be the best choice. With the MBA, the benefits that come with the job are much more lucrative.
Training requirements
As with any other job, training is necessary for a broker. For the most part, job training is offered right at the working environment. Most companies that hire brokers give them training that is specific to the company’s needs. Each company has different policies and guidelines which inform the kind of training employees will receive. In general, though, training will be related to securities management and analysis as well as communication skills. Generally, a masters degree attracts higher benefits and other perks.
Licensing and registration requirements
Finally, licensing and registration are also required for professionals. Since you will be responsible for the management the accounts of clients, you will be subject to the laws regulating the various aspects of trade. Registration as a legal representative of your company will thus be necessary. The FINRA is the organization that does this kind of registration. There is an examination that comes before the license and it is required for the broker to pass it. There are set levels for passing this exam and licensed brokers are recognized across the market.
Summary
The trading market has been growing consistently over several years. With new opportunities arising every year, many professionals have shifted their eyes towards this market. There are many kinds of opportunities that exist in stock trading. Being a stock broker is just one of the attractive careers in the industry. In order to be a reputable broker, you will be required to undertake a couple of certification procedures. The above list entails all the necessary approvals you will need to be a professional and recognized broker.
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