Many people interested in finance would love the fast paced lifestyle of a stock broker. What they don’t realize is the process of becoming a stock broker is a long and painful process, but the rewards can be great. In this article, we will teach you how to become a stock broker in Canada.
How To Become A Stock Broker
1. Focus on Education
If your in high school, focus on courses in the financial sector, and if your school does not offer them, considering looking for distance learning alternatives. It is key to have somewhat of a background in these areas early, so when you get to post secondary, the knowledge base is there.
2. Paper Trade
A stock broker has to have a strong passion for the markets. This involves research and knowledge on how to trade and what to trade. Starting out by paper trading(fake money) is one of the best ways to get your feet wet while your in high school or post secondary. There is no rules to paper trading under the age of 18, so the earlier you start the better.
3. College Degree
Stockbrokers must have a background in finance or business, so getting a degree in these areas during post secondary is crucial. Like we listed above, paper trade while your learning to hone your skills, and learn as much as you can about the markets. While in college, contact firms for possible opportunities for internships. It does help to keep a record of your paper trading history to show the firm your dedication and passion for what they do.
4. Enroll in Courses
Training courses are crucial to your success as a stock broker, and the possibilities are endless. As a stock broker, you are essentially a salesman. Your job is to guide investors on what to purchase, and why the purchase will be profitable for them in the long term. Even though you may have the knowledge to pass the required exams to become a stockbroker, finish these courses, as they can help you further your knowledge beyond what you are required to learn to become a stock broker. Any extra knowledge puts you ahead of the field and increases your chances of finding employment
Stock brokers in Canada are required to pass the Representative Manual Exam and the Canadian Securities Course exam. The examination is a two part test with 100 multiple choice questions. You must obtain a 60 percent score to pass the exam. When you pass the exam, you will be given a certificate of your achievement.
6. Register Yourself as a Broker
Stockbrokers must be registered with the NRD, or National Registration Database. There is also separate registration departments that you must register for in your specific province.
We hope this article has given you some insight on how to become a stock broker. The financial world is complicated, but the rewards and satisfaction that can come from a long and successful career far outweigh the long hours put in to achieve your goal. We wish you the best of success.