Angela Palacios got her start in personal finance after her high school career exam revealed that she was most suited for a job as a stockbroker. She took this feedback to heart and began studying economics, business, communications, and finance, all of which are essential skills for a stockbroker.
Palacios is now a partner and director of investments at the Center for Financial Planning in Southfield, Michigan, but it all started with a high school career proficiency exam and a desire to work as a stockbroker.
While the role of stockbrokers is changing as investors grow more self-sufficient, some brokerages still employ them. However, what may begin as a stockbroker employment frequently transforms into a career as a financial advisor or planner.
What is the role of a stockbroker?
A stockbroker was a more prevalent role when Palacios received her career test results. Traditionally, a stockbroker was the person who executed trades on behalf of an investor. A stockbroker may also serve as a salesperson, attempting to generate interest in a certain investment.
The necessity for a human middleman has decreased since the introduction of online transactions. Today, the terms stockbroker and financial advisor are sometimes used interchangeably, albeit the former is more likely to focus on the implementation of investment strategies, whereas the latter is more likely to focus on the creation of such investment strategies as part of a comprehensive financial plan.
What does it take to become a stockbroker?
“Becoming a stockbroker is not as difficult as it may appear,” says Josh Simpson, a financial advisor of Lake Advisory Group in Lady Lake, Florida. All you need is a bachelor’s degree and the ability to pass the Financial Industry Regulatory Authority (FINRA), your state, and your employer’s licensure examinations. The steps to becoming a stockbroker are as follows:
A bachelor’s degree is a good place to start.
Pass your state and employer-mandated licensure examinations.
Get your first work as part of a group so you can learn from other professionals in the field.
Check to see whether your job offers any opportunities for professional growth.
Is it time for me to become a stock broker?
“If you’re thinking about becoming a stockbroker, the most essential thing to think about is not the licenses,” Simpson adds. It’s all about how you want to treat your clients. You’d act as a link between investors and the stock market as a stockbroker. Your primary responsibility would be to place trades at the request of your client. As a financial advisor, your primary goal would be to assist people in investing their life savings and planning for financial objectives such as retirement.
