Securities Salespeople
Securities salespeople buy and sell securities or offer financial services.
Securities salespeople, also called stockbrokers, help clients to purchase stocks, bonds, and commodities. In addition, many brokers are financial planners.
Securities Salespeople are in the Finance career cluster and the Securities and Investments pathway.
Quick Facts
Wages: |
Well above the statewide median
$31.51 / hour Read more about wages |
Outlook: |
Percent Growth
13.3% Above statewide average Read more about outlook |
Education & Training: |
Bachelor's degree is common. |
On the Job: |
Work Activities
Assess your skills |
Job Title Examples: |
Broker,
Financial Consultant,
Fixed Income Manager
See more job title examples |
Source: Minnesota Department of Education, Minnesota Department of Employment and Economic Development, and CareerOneStop.
Wages & Outlook
Wages
Wages vary by the type of employer. Salespeople in brokerage firms tend to earn more than those in banks and mortgage companies.
Securities salespeople usually are paid a commission based on the number of stocks, bonds, and other products they sell. Earnings are high when there is much buying and selling, and low during a slump. Most firms provide brokers a minimum salary based on commissions they are expected to earn. Trainee brokers are usually paid a salary until they can build a client base. Some brokers are paid a percentage of the assets they oversee. Brokers who work for discount brokerage firms are usually paid a salary. Financial services salespeople who work in banks are usually paid a salary.
Full-time salespeople may receive benefits. Typical benefits include paid vacation, sick leave, and health insurance. Self-employed brokers must provide their own insurance.
View the Regional Wage Comparison Chart for:
Employment
In Minnesota, about 8,312 securities salespeople work in this medium-sized occupation.
About 11 percent of securities salespeople are self-employed.
Most securities salespeople work for large firms that have main offices in big cities. However, securities salespeople work all across the country.
Major employers:
- Securities and commodities brokerage firms
- Banks, credit unions, and savings institutions
Outlook
As the population grows, there will be more people needing help with their investments. This will increase the demand for securities salespeople. The growing number and complexity of financial products will also spur demand. In addition, banks now offer a variety of services, such as stocks and insurance. As banks attempt to be "one-stop shops," the demand for financial services salespeople will also increase.
Growth in this occupation will be limited by consolidation of the financial industry due to recent global financial problems. This will likely result in fewer job openings. In addition, the increase in buying and selling stocks over the Internet will reduce the need for brokers for some transactions.
Employment of securities salespeople is sensitive to the state of the economy. During downturns, people are less likely to have money to invest. In these periods, the demand for brokers will decline and some may lose their jobs or work fewer hours. Regardless of the economy, some positions will open as current brokers retire or switch occupations.
| Employment | Employment Change | |||
|---|---|---|---|---|
| 2010 | 2020 | Number | Percent | |
| U S | 312,200 | 359,700 | 47,500 | 15.2% |
| Minnesota | 7,315 | 8,288 | 973 | 13.3% |
| 2010 | 2020 | Number | Percent | |
| Central Minnesota | 361 | 437 | 76 | 21.1% |
| Northeast Minnesota | 190 | 212 | 22 | 11.6% |
| Northwest Minnesota | 244 | 286 | 42 | 17.2% |
| Southeast Minnesota | 404 | 445 | 41 | 10.1% |
| Southwest Minnesota | 207 | 223 | 16 | 7.7% |
| Seven County Mpls-St Paul, MN | 5,936 | 6,706 | 770 | 13% |
Source: Minnesota Department of Employment and Economic Development and Minnesota Department of Education.
On the Job
Overview
Securities salespeople buy and sell securities or offer financial services.
Which should you buy, junk bonds or blue chip stocks? Your first guess might be to go for the blue chips, as the word "junk" throws you off. But what exactly does "blue chip" mean? Why are some bonds called "junk," for that matter? Questions like these can often be answered by securities salespeople. Incidentally, "blue chip" stocks generally mean stocks that are relatively stable, and "junk bonds" are bonds that may yield high rates but are riskier investments.Securities salespeople are also called brokers or stockbrokers. They perform a variety of tasks depending on their specific job duties. When a client wants to buy or sell a security, for example, salespeople relay the order by means of their firm's computer. They may contact a securities exchange, such as the New York Stock Exchange. There, floor brokers negotiate the price and make the sale.
Securities salespeople also provide related services for their clients. For example, they explain stock market terms and practices. They provide information on securities, and advice on buying or selling. In addition, many brokers are financial planners. To develop a plan, they interview clients about their finances and goals. After analyzing this information, brokers discuss the best options with clients. Finally, they create a client portfolio. Portfolios may include stocks, bonds, mutual funds, or other investments.
Securities salespeople have many other duties. They record all transactions and prepare documents for their clients. They also review all trades for accuracy, and to ensure that they conform to trading rules. In order to monitor their clients' accounts, brokers prepare regular financial reports. In addition, they must stay informed of economic trends. They analyze stock market conditions to determine the best times to buy and sell. They read corporate reports and compute stock ratios to determine what stocks are good buys. Brokers also analyze stocks in order to monitor their clients' accounts.
One very important part of a salesperson's job is finding new clients. Many seek clients by telephone. Some place ads or use mailing lists. Many securities salespeople teach investment classes or give group lectures to find new clients. Unless they build a client base, brokers cannot stay in business.
Financial services salespeople sell banking and related services. They contact clients on behalf of the bank they work for. They discuss services such as loans, credit cards, special accounts, and investments. Banks now offer more complex financial services, such as the sale of securities. This means that financial services salespeople have increased responsibilities. Their duties can be similar to those of brokers in brokerage firms.
Work Activities
The following list of occupational tasks is specific to this career.
- Interview clients to determine financial information and goals.
- Analyze information, develop financial plans, and discuss options with clients.
- Contact exchange or brokerage firm to place order to buy or sell. Usually use a computer to place order.
- Review all transactions to ensure accuracy and to ensure that trades conform to rules.
- Prepare documents, record transactions, and inform clients of final prices.
- Prepare financial reports to monitor client finances.
- Analyze market conditions and keep informed of economic trends.
- Read corporate reports and compute ratios to determine good investments.
- Inform and advise clients of events affecting their plan or account. Explain terms and practices to clients.
- Find new clients via ads, mailing lists, and personal contacts. May teach classes or give lectures to build client base.
- Contact prospective clients to explain financial services.
- Determine client needs, develop financial plans, and offer services such as loans, investments, or special accounts.
People in this career perform the following list of tasks, but the tasks are common to many occupations.
- Establish and maintain relationships.
- Convince others to buy goods or change their minds or actions.
- Use computers.
- Get information needed to do the job.
- Communicate with people from outside the organization.
- Make decisions and solve problems.
- Analyze data or information.
- Organize, plan, and prioritize work.
- Work with the public.
- Explain the meaning of information to others.
- Communicate with supervisors, peers, or subordinates.
- Update and use job-related knowledge.
- Develop goals and strategies.
- Judge the value of objects, services, or people.
- Process information.
- Identify objects, actions, and events.
- Evaluate information against standards.
- Think creatively.
- Perform administrative tasks.
- Resolve conflicts and negotiate with others.
Working Conditions
In a typical work setting, people in this career:
- Have a very high degree of social contact. They work closely with clients and other brokers.
- Communicate constantly by telephone, e-mail, and in person. They also write letters and memos, but less often.
- May on occasion be placed in conflict situations where clients might be rude or angry.
- Are responsible for the work done by assistants.
- Often work as part of a team.
- Nearly always work indoors.
- May share office space with others.
- Must be very exact in their work and be sure all details are done. Errors could have serious effects on clients' finances.
- Regularly make decisions that greatly impact their client's and employer's finances and reputation.
- Make decisions that affect clients and other employees on a daily basis. They rarely consult a supervisor before deciding a course of action.
- Set nearly all their daily tasks and goals without consulting a supervisor first.
- Work in a competitive atmosphere. They must abide by strict daily deadlines.
- Sometimes repeat the same physical activities.
- May work more than 40 hours a week, especially when starting out.
- Generally work a set schedule, but may work evenings or weekends to accommodate clients.
Interpersonal Relationships
Physical Work Conditions
Work Performance
Hours/Travel
Physical Demands
In a typical work setting, people in this career:
- Sit for long periods of time.
- Use hands to handle, control, or feel objects, tools, or controls.
- Speak clearly so listeners can understand.
- Understand the speech of another person.
- See details of objects that are less than a few feet away.
- See details of objects that are more than a few feet away.
- Use fingers to grasp, move, or assemble very small objects.
- Hear sounds and recognize the difference between them.
- See differences between colors, shades, and brightness.
People in this career frequently:
It is important for people in this career to be able to:
It is not as important, but still necessary, for people in this career to be able to:
Source: Minnesota Department of Education.
Education & Training
Preparation
To work as a securities salesperson, you typically need to:
- have a high school diploma or GED;
- have a bachelor's degree;
- complete moderate-term on-the-job training; and
- have a license.
Education after high school
Most securities salespeople have at least a bachelor's degree. You must be knowledgeable about financial instruments, markets, economic conditions, and trends. A few majors are excellent preparation for this occupation. These include business administration, economics, and finance. Accounting, marketing, and banking courses are also helpful. However, employers rarely require specific courses or college majors.
Work experience
Work experience in sales or dealing with people is good preparation for this occupation.
On-the-job training
Most employers provide on-the-job training to help you meet state licensing requirements. In most firms, this training period takes about six months. Large firms may offer classroom instruction. You study topics such as securities analysis, public speaking, and sales.
You must take continuing education courses to maintain your license.
Related Programs (Current training programs available)
- Financial Planning and Services
- Investments and Securities
- Business & Personal/Financial Services Marketing Operations
Fields of Study (What to study to prepare for this career)
Click on any of the Fields of Study listed below to find out more about preparing for this career.
Level of Education
The table below lists the level of education attained by a subset of workers in this occupation. The workers surveyed were between age 25 and 44.
| Education level attained | Percentage of workers in this occupation* |
|---|---|
| Less than high school diploma | 1 |
| High school diploma or equivalent | 9 |
| Some college, no degree | 17 |
| Associate degree | 6 |
| Bachelor's degree | 50 |
| Master's degree | 15 |
| Doctoral (Ph.D.) or professional degree | 3 |
* National data for securities, commodities, and financial services sales agents (SOC 41-3031).
Helpful High School Courses
In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements.
You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.
Helpful electives to take in high school that prepare you for this occupation include:
- Banking and Finance
- Computer Applications
- Economics
- Marketing
- Personal Finance
- Principles of Sales
Many securities salespeople are self-employed. If you want to run your own business some day, you should consider taking these courses as well:
- Accounting
- Entrepreneurship
- Introduction to Business
The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.
You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.
Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career.
Source: Minnesota Department of Education.
Skills
People in this career need to:
- Listen to others, understand, and ask questions.
- Express ideas clearly when speaking or writing.
- Read and understand work-related materials.
- Judge the costs and benefits of a possible action.
- Analyze ideas and use logic to determine their strengths and weaknesses.
- Understand new information by studying it.
- Notice when something is wrong or is likely to go wrong.
- Use reasoning to discover answers to problems.
- Combine several pieces of information and draw conclusions.
- Develop rules or follow guidelines for arranging items.
- Think of new ideas or original and creative ways to solve problems.
- Identify problems and review information. Develop, review, and apply solutions.
- Concentrate and not be distracted while performing a task.
- Use math skills to solve problems.
- Manage the time of self and others.
- Check how well one is learning or doing something.
- Decide how to spend money to get the work done and keep track of how the money was used.
- Look for ways to help people.
- Persuade others to approach things differently.
- Be aware of others' reactions and change behavior in relation to them.
- Solve problems by bringing others together to discuss differences.
- Use several methods to learn or teach others how to do something.
- Analyze needs and requirements when designing products.
Communicate
Reason and Problem Solve
Use Math and Science
Manage Oneself, People, Time and Things
Work with People
Work with Things
Knowledge
People in this career need knowledge in the following areas:
- Customer and Personal Service: Knowledge of providing special services to customers based on their needs.
- Economics and Accounting: Knowledge of producing, supplying, and using goods and services. Also includes knowledge of the methods for keeping business records.
- Sales and Marketing: Knowledge of advertising and selling products and services.
- English Language: Knowledge of the meaning, spelling, and use of the English language.
- Mathematics: Knowledge of the rules and uses of numbers. Areas of knowledge include arithmetic, algebra, geometry, and statistics.
- Administration and Management: Knowledge of managing the operations of a business, company, or group.
- Law, Government, and Jurisprudence: Knowledge of laws, rules, court procedures, and the political process.
- Computers and Electronics: Knowledge of computer hardware and software.
Interests
People in this career are people who tend to:
- Consider good working conditions important. They like jobs offering steady employment and good pay. They want employment that fits their individual work style. They may prefer doing a variety of tasks, working alone, or being busy all the time.
- Consider achievement important. They like to see the results of their work and to use their strongest abilities. They like to get a feeling of accomplishment from their work.
- Consider relationships important. They like to work in a friendly, non-competitive environment. They like to do things for other people. They prefer jobs where they are not pressured to do things that go against their sense of right and wrong.
- Consider independence important. They like to make decisions and try out ideas on their own. They prefer jobs where they can plan their work with little supervision.
- Consider support from their employer important. They like to be treated fairly and have supervisors who will back them up. They prefer jobs where they are trained well.
- Have enterprising interests. They like work activities that involve starting up and carrying out projects, especially in business. They like to lead and persuade others, make decisions, and take risks for profit.
- Have conventional interests. They like work activities that follow set procedures, routines, and standards. They like to work with data and detail. They prefer working where there is a clear line of authority to follow.
Source: Minnesota Department of Education.
Tools & Technology for Sales Agents, Securities and Commodities
Tools
| Desktop computers | Tablet computers
|
Technology
Compliance software
| Internet browser software
|
Licensing / Certification
Securities salespeople must be licensed in Minnesota. Applicants for licensure as a securities agent must:
- take and pass two exams.
Securities broker-dealers and investment advisors also must be licensed in Minnesota.
For more information, contact:
Minnesota Department of Commerce
Licensing Division
133 East 7th St.
St. Paul MN 55101
Phone: 651.296.6319
http://www.commerce.state.mn.us/
Certification for financial planners is optional. For more information, contact:
The Certified Financial Planner Board of Standards
1700 Broadway, Suite 2100
Denver, CO 80290-2101
Phone: 888.237.6275
Fax: 303.860.7388
E-mail: mail@cfp-board.org
http://www.cfp-board.org
All states require securities salespeople to be licensed. Applicants must pass the General Securities Registered Representative Examination. Other requirements vary by state.
Certification Details
Certifications are examinations that test or enhance your knowledge, experience or skills in an occupation or profession.
There are 20 certifications related to this career.
Licensing Details
Click on occupations listed below to find State
of Minnesota licensing information.
Brokers License
Securities Agent, Securities Broker-Dealer, Investment Advisor
Source: Minnesota Department of Employment and Economic Development and CareerOneStop.
Jobs
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Hiring Practices
Many employers require a college degree. However, they often consider personal qualities more than specific college training. Employers seek applicants with strong sales ability and good people skills. They also seek applicants with a strong desire to succeed. Self-confidence and the ability to handle rejection are also important. Some employers also require a good credit history and a clean record.
Many employers prefer to hire applicants who have had success in other jobs. Some firms prefer applicants with sales experience. Many entrants to this occupation transfer from other jobs.
Banks prefer to hire college graduates for financial services sales jobs. A business administration degree with courses in finance may be preferred.
Advancement Opportunities
Securities salespeople usually advance by increasing the number and size of their accounts. With experience, brokers may handle the accounts of large institutions. Some experienced brokers become office managers. They supervise other salespeople and also provide services for their own clients. A few brokers become top managers or become partners in their firms.
Job Title Examples
Broker, Financial Consultant, Fixed Income Manager, Investment Advisor, Registered Representative, Investment Executive, Investment Specialist, Financial Representative, Investment Consultant, Stock Broker
Similar Careers
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If you are looking to broaden your job search,
these careers require similar skills. Click on the names to link to their career profile.
Buyers and Purchasing Agents
Market Research Analysts
Purchasing Managers
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Related Industries
Below are industries related to Securities Salespeople you may be interested in reading about. Employers in these industries typically hire
Securities Salespeople. Click on the names to link to their industry profile.
Business Management And Support Services
Insurance
Investments
Source: Minnesota Department of Employment and Economic Development and Minnesota Department of Education.
