You do not require any educational background, but in most of the cases, most of the stockbrokers have some college education. As you succeed in your career, you would realize that a college degree helps greatly. The stock market is a tedious and fast paced arena that asks for constant analysis, vigilance and hours of devotion. When you need to study the market and its trends, a college education comes in handy to understand the terms and the reports, etc. You should be well versed in math, economics and business strategies. If you want you can manage your portfolio or under your parent’s name if you are under 18.
You need to pass a certification exam for becoming a stockbroker. To take the exam, you need to join a brokerage firm for minimum four months. This is mandatory before taking the exam for becoming a stockbroker. This exam is General Securities Registered Representatives Examination.
This exam is recognized by Financial Services Authority’s list of approved exams. The certification makes you an FSA approved person so that your firm can put you forward for their stock broking firm. In many states, you may also need to take another examination of Uniform Securities Agents State Law Examination and Uniform Investment Advisor Law Exam to practice stock broking in the state.
Thus after passing the exam, you still need to contemplate your options as to how to become a stockbroker at CMC Markets and be successful as well. You can act as an independent broker with your firm, but the best way to start is to be associated with a good stock broking firm. A large firm gives you broad exposure to different kinds of stock broking activities and tons of experience. Moreover, various activities in a large broking firm would not only give you exposure but would also teach you how to handle taking positions of large volumes. You can also join investment clubs and compare different investment opportunities, analyze market movements and results.
The best advice for becoming a good stock broker is to start with taking positions in the industry you are familiar. If you have some idea about consumer durables or retail chains, then it is good you start dealing in stocks of companies from these fields. This way you shall be able to understand the market behavior and market movements. You shall also feel comfortable taking positions in these companies as their movement would be predictable to you.
Thus you can easily become a stockbroker with any reputed firm. Once you start understanding the market and are more confident about your skills, you can take industry jumps to better job positions or start your firm. The choice is yours, just remember, slow and steady wins the race. Start steadily and gradually gain the pace with the market.
Just like any profession, the stockbroker’s career becomes successful for those who possess the characteristics necessary for a winner. The industry of stockbrokers is very competitive, and one should be extraordinary to reach the top. What characteristics should an aspiring stockbroker possess to be successful in this industry?
First, a successful stockbroker communicates effectively. Trading stocks deal with millions of pounds per transaction every day. They are in contact with the representatives of the companies they deal and with other stockbrokers in the trading block. They need to communicate the rise and fall of prices in timely, efficient and effective manner. One erroneous communication would be very costly.
Second, a successful stockbroker is self-motivated. The world of stockbrokers is a fast-paced environment, and one would need to be self-motivated and work with determination to avoid falling behind. Remember that like any other jobs; employers look at the stock broker’s performance when he evaluates him. This is particularly true with the slump in world economy recently.
Third, a successful stockbroker possesses an analytical mind. One must be able to analyze information quickly and act on the findings at once. For traded companies to make money at once, a slight movement in the activity of the traded stocks that would mean profit should be acted upon immediately. Prices move in split seconds, so the stockbroker’s analyses are critical. He must be swift to spot patterns and trends and decipher the information to reach an informed judgment.
Fourth, a successful stockbroker is physically fit. His work requires long, stressful hours. One who has weak physical attributes may not be able to compete in the industry. Aside from expensive medications, recuperating from a sickness while working would seem almost impossible considering the nature of this job.
Lastly, a successful stockbroker has strong academic background. The industry has grown significantly in the last twenty years. In decades back, an ordinary tea boy without any academic qualification may work his way up to become a stockbroker. But these days, a degree in finance, economics or business earned from a reputable university is required for those who want to pursue this job.
There are a lot more characteristics that make a successful stockbroker. What I have presented above are the basics. If a stock broker possesses these qualities and could balance them as they are applied to work, then he is on his way to a very promising career as a stockbroker.
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