A certain amount of formal education along with several years of work experience is required to become a floor broker. You must possess a bachelor’s degree in business, finance, or accounting before being hired at a brokerage firm. Some firms may also require a master’s degree in business administration before training you to become a floor broker. It is best to participate in an internship program while in college to improve your hiring prospects. You must also complete several years of hands-on training and pass a licensing exam to become a floor broker.
Floor brokers work directly on the trading floor of a stock exchange as brokerage representatives. They carry out company orders for stock trades by negotiating with other floor brokers. Their primary task is to obtain the best trading deal for their brokerage firm. A floor broker typically specializes in a particular type of stock or commodity. A combination of formal education and practical work experience is generally required to become a floor broker.
A bachelor’s degree is generally necessary to obtain a floor broker position with a brokerage firm. It is best to earn this degree from a recognized and fully accredited college before beginning your career. Floor broker positions are often difficult to attain, and a degree from a well-known college may give you an advantage with prospective employers. Although some brokerage firms do not require a particular college major, it may be helpful to major in business, finance, or accounting. Obtaining a degree in one of these subjects could also be beneficial if you choose to pursue a master’s program.
Brokers are not sent to the trading floor until they have obtained extensive experience and training. Earning a Master of Business Administration degree can increase your skills and may also minimize the amount of training needed to become a floor broker. You will usually have an opportunity to participate in an internship program at a brokerage firm while earning your master’s degree. Completion of an internship allows you to receive hands-on training and gain valuable work experience. Previous work experience in this field will significantly enhance your employment resume.
Once you have completed your education and internship, apply for a entry-level position at a brokerage firm. Make certain that the firm actually utilizes floor brokers before applying. Once hired, you will be trained to work on the stock exchange floor. This training period may last for several years before you are allowed to conduct business on the trading floor. You must also take and pass the General Securities Registered Representative Examination before you can begin any official trading activities.