If you have seen Wall Street the movie, or even the Wolf of Wall Street, you will probably have an idea of stock brokers that they are crazy, money-hungry lunatics who live a life that is far from ordinary. Whilst there are some stockbrokers who may very well live a life like this, it is far from being the industry standard, but what is the life of a stock broker like? We caught up with broker Kurt Sanborn, to find out more about what it is like to be a stockbroker, and how to get into the industry.
There is no real education that is required in order to be a stockbroker but experience in economic s, math and finance would be beneficial. The key to getting into the world of being a stockbroker is to be contracted by a brokerage firm, and working your way up the ladder. During your first few years you will be working towards earning your brokers license, which means lots of hard days, learning and doing dogs body work, as you gain experience and the right knowledge to pass your exams. During these days you should expect little pay and very, very long days.
Once you have your license, the hard work really begins, the only plus now is that you will be getting paid a far higher salary and a higher rate of commission. Your day will start out by crunching data, new reports on global finance, business reports and other market impacts. most stockbrokers start their day at 5am to give them enough time to review the market before the bell rings to start trading.
The most successful stockbrokers are those who make their clients the most money, in order to do this one must not only be skilled in terms of what they understand about the market, but they must also have excellent relationships with their clients. Much of your time as a stockbroker will not be spent on the trading floor, but on the phone with your most important clients, managing relationships and looking for them to invest even more money on your tips. In order to keep your clients you need to deliver results and you also must work hard on the relationship, so that they trust you and stay loyal to you.
When the bell rings to cease trading for the day, you will spend the following hours compiling reports about the day’s events, and then looking ahead to tomorrow and any new stocks which may look appealing. Many stockbrokers love this time of night because they can sit and review analysis without the pressure of the trading floor or phone calls. Once the paperwork is complete and the analysis done, you will head home for an early night ahead of a busy day tomorrow.
As you can see, far from Jordan Belfort’s style of brokering.