What Makes a Great Stockbroker

Published: 29th June 2009
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If you want to be a stockbroker, first thing that you have to do is find a broker-dealer that will be a good fit for you. There are many sources for finding a job as a stockbroker, such as websites, friends, magazines, newspapers, etc. Check out the firm thoroughly before signing up.


Now that you have found a broker-dealer that fits your needs, you will need to pass the Series 7. The Series Seven Exam is the licensing exam that you need to successfully pass for you to become a licensed stockbroker. The Series 7 is a 250-question multiple choice test that covers corporate and municipal bonds, stocks investment banking, options, margin, self-regulatory organizations, etc. The Series 7 can be a nightmare of an exam if you don't put in the effort necessary. Most individuals take about 4-6 weeks to prepare for this exam. After you pass the Series 7 Exam, you will also need to pass either the Series 63 or Series 66 state-licensing exam.


Once you have successfully passed your exams, you can concentrate on sales training. Find out who the top earner in your firm is. See if it is at all possible to be trained by him/her. Big earners have a good work ethic. There is absolutely no substitute for hard work. Since this is a sales based business, you will need to make hundreds of phone calls per day. The trainer will help prepare you by making sure that you know how to overcome customer rejections and closing the sale. Once you have an idea of how to overcome customer rejections, have your friends and family pretend that they are customers and try to overcome their rejections. The more you practice, the better you will get.


Do your homework. Initially, your broker-dealer will tell you what security or securities that you should be promoting to your clients or potential clients. Research that security or those securities as much as possible. Customers will test you and you want to make sure that you are prepared. Certainly, the more you know, the more sales you will make. Take some time each night doing market research online and/or by watching some of the financial news shows on tv. Although this might sound a little overwhelming at first, but when you understand the market, you will feel confident sparring with any customer.


It is inevitable that some of your recommendations are not going to go the way that you had hoped. Don't hide. Contact your clients and either reassure them or switch them to another security. Smart investors understand that this happens and as long as you aren't making yourself scarce, they will likely keep you as their stockbroker. Although your clients may not be happy, they will respect you for making the call. If 6 or 7 out of 10 recommendations that you made to a customer work out, you are doing your job.


Hopefully, I have given you a little insight into what it takes to become a great stockbroker and make tons of money. It is now up to you to get going. Good luck and much wealth to you.

Steve is the owner of Empire Stockbroker Training Institute, which provides Series 7 materials for securities professionals. Steve has written over a dozen stockbroker training books including the Series 7 Exam for Dummies.

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