Stockbroker career advancement

A financial planner and a stockbroker each interact with clients who may want to buy or sell financial products, but there's a different standard of fiduciary responsibility applied to each.

The stockbroker is charged with maintaining the appropriate suitability standard, which means that as long as a product is considered to be suitable, there is a green light to execute a transaction. In many ways, the difference between a financial planner and a stockbroker comes down to two primary characteristics: The stockbroker is much more transactional than the financial planner; he gauges the financial ability of the client before offering a range of investment opportunities.

For most brokers, there is not much depth to a relationship beyond trading decisions. Conversely, a financial planner is a multidisciplined expert in the market, economics and personal finance.

Planners interview clients and pore over their financial histories and future goals. Some only offer advice; others have the ability to sell products directly to their clients. A degree in economics, finance or mathematics can help aspiring financial planners or stockbrokers. Since either job requires a great deal of self-marketing and interpersonal skills , it is plausible to have a degree in communications or marketing as well.

A professional background in finance or sales is a plus. Stockbrokers and financial planners must meet specific legal criteria before they can advertise their services, execute trades or work with clients. Most of these involve the Financial Industry Regulatory Authority FINRA , which administers securities licenses in the United States.

Most FINRA exams require a sponsor usually the brokerage firm or planning institution to sit for the test. An individual must pass a Series 7 FINRA exam to act as a stockbroker, and many financial planners seek a Series 7 as well.

Depending on the services a financial planner wishes to provide, he may have to also take a Series 65, Series 62, Series 3 or Series 63 among others. Once granted the legal right to act as a broker or planner, the government designates the employee as a registered representative. Most entry-level positions require a bachelor's degree, but an MBA is a major plus, particularly for career advancement.

Other professional certifications and designations, such as Chartered Financial Analyst CFA or Certified Financial Planner CFP , are also a good idea. News research in , the average financial planner in the U. Much depends on the kind of financial planner or the kind of stockbroker. Each job comes in commission-based, salary-based or blended income streams.

Some financial planners earn most of their incomes from client fees or a combination of client fees and commissions. Monthly salary can be inconsistent for commission-based registered representatives, and overall salary ranges can be huge. There is no hard and fast rule that stockbrokers make less than CFPs, but averages dictate that it is likely. Both professions can be challenging, though potentially very lucrative. According to the Bureau of Labor Statistics BLS , the average stockbroker works more than 40 hours per week, and the average financial planner works more than 50 hours per week.

Financial planners spend a greater proportion of their time in front of clients, particularly during evenings and on weekends; some clients can only meet during these windows.

How to Become a Stockbroker - Ultimate Resource StockbrokerPro

Neither job is considered as rigorous as being a partner in a private equity firm or an associate with an investment bank. Most stockbrokers work in offices and trade electronically, though some still do occupy the trading floors of major exchanges in cities such as Chicago or New York City.

Financial planners are more likely to have to travel for their work or to work strange hours, but they also receive a greater overall degree of work flexibility. Financial planners and stockbrokers are in high demand, and that demand is only expected to rise, according to the BLS. Markets are becoming increasingly regulated and complicated, which means that the average individual is ignorant about how to navigate investment products.

Career advancement as a stockbroker? : FinancialCareers

This amounts to an added 39, registered representatives over levels. According to the official Occupational Outlook Handbook, "Demand for investment banking advisory services and commodities trading are likely to create strong employment growth. There is some reason to believe that this added demand will benefit financial planners more than stockbrokers.

This retirement crowd relies heavily on financial planning, but tends to do little to no direct stock trading. Moreover, the growing prevalence of ETFs and no-load mutual funds makes it easier for a non-Series 7 adviser to cut into a stockbroker's natural market. There is no question that financial planning requires a great deal of interpersonal communication; it's genuinely a good career for those who love finance and spending time around people and helping clients.

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Stockbrokers spend more time in front of a computer, trading and watching the markets move. This is conceptually a better fit for strictly analytical people who may tire easily in social situations.

The question of fiduciary responsibility should not be overlooked. Financial planners are held to a much stricter code of ethics than stockbrokers, which brings its own challenges and advantages. This difference in professional standard is only exacerbated if the planner receives the CFP credential. Dictionary Term Of The Day.

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Stockbroker By Sean Ross September 14, — Education and Skills A degree in economics, finance or mathematics can help aspiring financial planners or stockbrokers. Salary According to U.

Occupational Outlook Financial planners and stockbrokers are in high demand, and that demand is only expected to rise, according to the BLS. Which One to Choose There is no question that financial planning requires a great deal of interpersonal communication; it's genuinely a good career for those who love finance and spending time around people and helping clients.

Read a detailed comparison between life as a stockbroker versus a financial advisor; find out how the two are different and which one is best for you. Discover the general job duties and average salary of a financial planner, as well as the education, training and skills necessary for success.

Learn what education and certifications you need to become a financial planner, as well as the future prospects and earnings potential for financial planners.

If your financial planner is calling you too often, something might be wrong. Financial advisors may face ethical issues in their work. Find out what they are. When scanning the financial advisor landscape, recognize that both financial advisor and financial planner are very broad categories. Identify the key differences between a career in accounting and financial planning, and learn how your personality dictates which is the better choice for you.

Find out how this demographic has all the needs to keep your firm busy year-round. One of the great attractions for many that become stockbrokers, is that there is no such thing as a typical day.

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