Working on Wall Street: Stockbrokers in New York

New York is recognized as the financial center of the world. And the heart of New York's storied financial district is Wall Street, where fortunes can be made or lost in seconds. The people making the deals that make the money on Wall Street are securities sales agents -- brokers who buy and sell the stocks, bonds, and securities that drive businesses forward (or push them back). This is the ultimate sales job.

The Work of a Stockbroker

Brokers advise their clients -- individuals or retail investors -- about appropriate investments based on their needs and financial ability. They may also explain the workings of the stock exchange to their clients. After the client agrees to an order, the broker then sends the order electronically to the trading floor and collects a commission once the sale is finalized.

Sales are made through market makers or firms on behalf of the investors. Only members of the stock exchange can conduct transactions, so whenever individuals or corporations want to buy or sell stocks they must go through a brokerage house.

Though the most common type of securities sales agent is the stockbroker who assists individuals and retail investors, other financial sales agents are investment bankers (who connect businesses in need of money to interested investors), investment banking sales agents and traders (who sell stocks and bonds to investors), floor brokers (who negotiate with other floor brokers to make sales on the exchange floor), independent brokers, and financial services sales agents (who counsel individuals on everything from stock to checking accounts). All of these jobs require talent in selling -- as no matter their specialty, sales agents need to first sell their services to banks, businesses, or individuals.

Finding clients and building a customer base, though time-consuming, is an extremely important task for stockbrokers. Securities and commodities sales agents starting their careers spend much of their time searching for clients, often relying heavily on telephone solicitation, or “cold calling,” from a list of potential clients. Some agents network by joining civic organizations or social groups, while others may rely on referrals from satisfied customers.

Salary & Outlook

Limited success in cold calling or developing a customer base can force many brokers to leave the industry, and the high-stress work environment means turnover is high. However, if you're able to create a sound client base and make strong investments for your clients, you could see a salary six-times that of lawyers.

According to the Bureau of Labor Statistics, the median annual salary of securities, commodities, and financial services sales agents is $66,930. The middle half earn between $39,310 and $118,640. Because this occupation is based on sales, many workers are paid a commission based on the products they sell. Most firms provide sales agents with a steady income by paying a “draw against commission”—a minimum salary based on commissions they can be expected to earn. Trainee brokers usually are paid a salary until they develop a client base with their salary gradually decreasing in favor of commissions as the broker gains clients.

In the New York City area, the average annual salary for securities and financial sales agents is $124,160

Careers for securities, commodities, and financial services sales agents are projected to grow by 9 percent throught 2018, about as fast as average. Employment in the securities industry is closely connected with market conditions and the state of the overall economy and is highly volatile during recessionary periods. Entry-level sales agents, particularly those with previous sales experience, should face better prospects in smaller firms. Despite the volatility, established brokers have a very strong attachment to their profession.

Education & Training

There are dozens of tech schools, colleges, and universities in New York offering business or finance degrees and certificates. A bachelor's degree in business, finance, accounting, or economics is important for securities sales agents, especially in larger firms. Many firms hire summer interns before their last year of college, and the most successful interns are often offered full-time jobs at the firm.

If you're thinking of moving up in the securities industry, you'll eventually want to get a master's degree in business administration (MBA), which is often a requirement for high-level positions in the securities industry.

Licensing is key to becoming a broker, because to sell or buy on the stock exchange, brokers must be licensed. You can obtain your license by passing the General Securities Registered Representative Examination (also known as the Series 7 exam), and the companion test, the Series 63, in states that require it. See more information on licensing.

Securities and commodities sales agents must keep up with new products and services and other developments. Because of this, brokers regularly attend conferences and training seminars, and other continuing education classes.

Featured Top Business Schools & Programs in New York City

Subjects listed are highlights of programs and/or courses offered.

• University of Phoenix
  Accounting, Business Administration, Finance
• DeVry University
  Accounting Technology, Business Administration
• Keller Graduate School of Management
  Business Administration, Accounting and Financial Management, Financial Analysis, MBA Program
• Briarcliffe College - Bethpage
  Accounting, Business Administration / Management
• Briarcliffe College - Patchogue
  Business Administration
• Wood Tobé-Coburn School
  Accounting, Business

For more information on Finance Degree Schools & Programs in New York, visit Businessschools.com