Brokers are employed by stock and commodity exchanges, brokerage companies and other financial institutions. As far as employment requirements are concerned, stockbrokers must have a Master or Bachelor of Business Administration, Economics or a related discipline. In addition, to obtain a degree in stock exchange trading, students must choose a concentration in securities trading, financial analysis, financial management or personal financial advice.
Most stockbrokers start as trainees at stockbrokers and are trained for this job. Brokers undergo sales training and a representative manual exam for Canadian securities as a first step to becoming a stockbroker in Canada to improve their business, economics, and math knowledge.
A stockbroker must demonstrate rigorous accounting, data forecasting, and financial reporting skills and pass a series of licensing tests. An analytical, forward-looking stockbroker must analyze securities as a series of numbers and collect helpful information to pass on to customers, who they can then use to sell more securities.
Stockbrokers make it easier for investors to buy and sell shares for a commission. They know the stock market and the different types of investment products available to customers. Stockbrokers communicate with their clients to determine which types of stocks and commodities best suit their financial objectives and current investment portfolios.
Most stockbrokers must meet individual sales quotas to remain employed, and they are responsible for attracting new customers and selling them shares and other investment products. Stockbrokers in Canada must have at least a bachelor’s degree in economics, finance or economics. However, many brokers prefer to employ a stockbroker with at least a bachelor’s degree in business administration.
Becoming a Canadian Stock Broker
The FINRA examination series requires a bachelor’s degree with a focus on stock exchange trading. Graduates interested in becoming a stockbroker in Canada should attend the Canadian Securities Course (CSC) of CSI Global Education offered by CSI.
Candidates must gain twelve months of experience in the securities industry within 36 months of applying for registration as a stockbroker. All stockbrokers in Canada must pass the minimum CSC (Canadian Securities Course) exams. A series of audits allows agents to perform certain functions in their brokerage activities, and stockbrokers can take additional audits to demonstrate their expertise in all types of investments and financial services.
In the United States, stockbrokers must pass both Series 7 and Series 63 tests to obtain a license. Persons who hold a Series 6 license are not referred to as “stockbrokers” because they are not trained or licensed to possess the full range of capabilities of a Series 7 stockbroker (see list of securities audits). Once an aspiring stockbroker passes the Series 63 test, it can facilitate the purchase and sale of mutual funds, bonds and stocks in all states.
Stockbrokers in Canada have a license to buy and sell stocks, bonds, options and other securities in Canada. Brokers trade bonds, shares, foreign currencies, commodities, futures and other securities on the stock exchanges. Stockbrokers must hold a particular securities license to buy or sell shares.
A stockbroker is a licensed securities dealer who manages a stockbroker’s investments by trading stocks, equities and other financial products for a good return. Brokers are dealers in securities, and they are commercial agents acting on their behalf as securities brokerage companies. In addition, customer service stockbrokers trade securities on behalf of their clients.
How to become a stockbroker When people want to buy shares, they can become stockbrokers. Brokers are regulated professionals, persons associated with brokerage firms or broker-dealers that buy and sell shares and other securities for retail and institutional clients on stock exchanges and over-the-counter for fee or commission. Financial advisers are not stockbrokers, and licensed Series 6 individuals are prohibited from selling shares without acquiring a title.
Because of the high earning potential and the fulfillment of building your client base, stockbroking can be a promising career for hard-working and ambitious people.
If you want to act as a trader yourself, you must obtain a licence from the Financial Industry Regulatory Authority (FINRA) to execute orders.
Here are some of the best online brokers that you can trade for Canadian residents who want to trade stocks in Canada and the United States. Online brokers are licensed securities brokers in Canada who maintain a physical presence.
Questrade is the best online broker for the Canadian stock market for citizens of Canada and the U.S. market. As a result, trading in U.S. equities in Canada may vary from broker to broker, as well as the terms available.
National Association of Stock Brokers – The NAS consists of various chapters around the country and facilitates information sharing between companies, stockbrokers, and analysts. Brokers and traders are looking for analysts to research and make recommendations to clients and portfolio managers on how to buy and sell securities. The IIRC makes demands on the competence of individuals to sell securities such as equities, bonds, mutual funds, options and futures.
You also need to meet your training requirements before you can work as a stockbroker. As part of your training, you should be prepared to take the CSIS Canadian Securities Course exam and pass it if necessary. In addition, to be a broker, you must be at least 72 years old to pass the General Securities Representative Examination (the so-called Series 7 Examination).
The median wage for stockbrokers and other agents selling securities, commodities, and other financial services in 2017 was $63,780.