Stockbrokers have one of the few jobs where it's possible to earn literally millions or nothing at all.
When you succeed in this field, the money rolls in. "A good broker can make as much money as six lawyers," says Nick Hunter, executive director of American Investment Training, an Islandia, New York-based firm that helps prepare candidates for the Series 7 licensing exam, which all securities salespeople must pass.
Find a Sponsor
To take the Series 7 exam and become a registered representative, you need a sponsor. In the securities market, broker/dealers are responsible for the actions of their registered representatives, explains Frank McAuliffe, senior vice president of the National Association of Securities Dealers, which is now part of the Financial Industry Regulatory Authority.
Many broker/dealers offer training programs for new employees. Fidelity Investments spends up to four months training its representatives on its systems, the Series 7 and the companion test for all states that require it -- the Series 63. "We provide employees with the time to study, and pay for the training," explains Donna Cotten, Fidelity vice president of talent acquisition. "Additionally, we do not require employees to reimburse us."
If you can't find a sponsor willing to pay you to study, you may be tempted to turn to a firm that sponsors test takers for a fee. Be aware that brokers may sponsor only candidates they employ. Collecting a fee to sponsor someone you don't intend to employ is against the rules, and companies caught doing it are sanctioned, McAuliffe says.
If you're having trouble finding a sponsor, check the library for Standard & Poor's Securities Dealers of North America, a $935 directory that lists contacts at 5,000 American and Canadian firms.
Can You Pass?
The exam requires a score of 70 to pass. What happens if you flunk? At Fidelity, you're likely to be offered a customer service representative position that doesn't require a license. "If an employee fails the exam and is in good standing, we allow the employee to apply for other positions," Cotten says. "If a nonlicensed customer position is open, this is typically a good match for the employee and Fidelity."
Once you pass, be prepared to starve. "A new broker will make no real money for six months to one year," Hunter warns. And while some stockbrokers earn their living on the golf course or by giving seminars, most use the phone to find new clients. They make hundreds of calls daily, until they build a book of business or quit in frustration.
If you work at a large firm, the calls may be warm rather than cold. "At Fidelity, we have a pool of information about our customers already," Cotten says. "We can take that customer information and make that outbound call to see if they'd like to hear more information about a product."
Another option is to attach yourself to a bank, which you can do by applying directly or going through a company that provides registered representatives to banks.
Will You Last?
Don't go into the field if you're not confident you will succeed. Even if you are confident, the odds aren't tremendous that you'll stick with it. Half the employees around you are probably filling seats left vacant by someone who wasn't right for the job.
Stock Broker Cover Letter
Stockbrokers are certified professionals who are also financial advisors and have to buy and sell shares on behalf of their private investors. Instead of trading the investments in a direct manner, investors will take the help and knowledge of stockbrokers to help them in investing their funds. Usually, the most important work of a stockbroker is to exhibit excellent dependability skills in finance, while expanding and maintaining their client base. The main responsibility of a stockbroker is to formulate investment plans for the client base on certain needs, managing their records and monitoring all the transactions of the investments made for their client.
Moreover, a stockbroker will also have to keep himself or herself updated on all the financial reports while they are gathering various information about stocks, bonds, pension plans, and mutual funds. To become a successful stockbroker the educational qualifications required are an undergraduate degree in finance and a registered license to qualify for this job. However, he or she will only be able to gain access for more employment options by completing a master's degree or MBA. Moreover, stockbrokers will also have to attend few training courses throughout their tenure of employment for keeping themselves updates with all the latest trends floating in the industry.
Other than these academic qualifications, a stockbroker will also have to demonstrate remarkable communication skills and analytical skills for maintaining their relationship with client. They will have to do all this in a professional and confidential manner, because they constantly handle financial information. Along with all these qualities, even your job application must be impressive, so that you are noticed amongst the huge crowd. To get a job these days has become very tough, therefore, to help you get a job send a cover letter with your resume. This article will help you with a stockbroker cover letter.
Stock Broker Cover Letter
3018 Argonne Street, Newark DE19711
January 1, 2011
4003 Wood Street
Dear Ms. Diaz,
Being a stockbroker and working for a prestigious organization like yours is an honor. I was enthusiastic when I came across the job listing of your organization and that I am sending you my resume to be considered for this position. I am aware that there will be many people applying for this position, but I guarantee you that I am the best candidate.
I am working as a stockbroker for asset management; I have worked in this same profile since last seven years and have offered nothing but success to my clients and organization. In addition, I have a license, along with a master's degree in finance. I can assure you that there is not even one investment option that I am not well versed with, and I have outstanding people and communication skills.
If you wish to know more about my expertise and knowledge, then you can reach me anytime on 302-308-2269 for scheduling a meeting. I can assure you that I will be the best broker for your organization, and I am just looking for an opportunity for further proving it to you. I would like to thank you for reviewing my letter and enclosed resume, and I look forward for a call from you. Sincerely,
Stockbrokers have a huge competition in the market these days. Therefore, your cover letter has to be precise and well written. Do not forget to proofread your letter before sending. Put in your best efforts, good luck!