Because securities and commodities sales agents must be knowledgeable about economic conditions
and trends, a college education is important, especially in larger securities firms.
In fact, the overwhelming majority of workers in this occupation are college graduates.
Although employers seldom require specialized academic training, courses in business
administration, economics, and finance are helpful.
Many employers consider personal qualities and skills more important than academic training.
Employers seek applicants who have considerable sales ability, good interpersonal and
communication skills, and a strong desire to succeed. Some employers also make sure that applicants
have a good credit history and a clean record. Self-confidence and an ability to handle
frequent rejections are important ingredients for success.
Because maturity and the ability to work independently are important, many
employers prefer to hire those who have achieved success in other jobs. Most firms
prefer candidates with sales experience, particularly those who have worked on
commission in areas such as real estate or insurance. Therefore, most entrants
to this occupation transfer from other jobs. Some begin working as securities
and commodities sales agents following retirement from other fields.
Securities and commodities sales agents must meet State licensing requirements,
which usually include passing an examination and, in some cases, furnishing a
personal bond. In addition, sales agents must register as representatives of their firm
with the National Association of Securities Dealers, Inc. (NASD). Before beginners can
qualify as registered representatives, they must pass the General Securities Registered
Representative Examination (Series 7 exam), administered by the NASD, and be an employee
of a registered firm for at least 4 months.
Most States require a second examination—the Uniform Securities Agents
State Law Examination. This test measures the prospective representative’s
knowledge of the securities business in general, customer protection requirements,
and recordkeeping procedures. Many take correspondence courses in preparation for
the securities examinations. Within 2 years, brokers are encouraged to take
additional licensing exams in order to sell mutual funds, insurance, and commodities.
Most employers provide on-the-job training to help securities and commodities
sales agents meet the registration requirements for certification. In most firms,
the training period takes about 4 months. Trainees in large firms may receive
classroom instruction in securities analysis, effective speaking, and the finer
points of selling; may take courses offered by business schools and associations;
and may undergo a period of on-the-job training lasting up to 2 years. Many firms
like to rotate their trainees among various departments, to give them a broad
perspective of the securities business. In small firms, sales agents often receive
training in outside institutions and on the job.
Securities and commodities sales agents must understand the basic characteristics of
the wide variety of financial products offered by brokerage firms. Brokers periodically
take training through their firms or outside institutions in order to keep abreast of new
financial products and to improve their sales techniques. Computer training also is important,
because the securities sales business is highly automated. It is mandatory for all registered
securities and commodities sales agents to attend periodic continuing education classes to
maintain their licenses. Courses consist of computer-based training in regulatory matters
and company training on new products and services. In addition, more sales agents are
taking courses to become certified financial planners. The Certified Financial Planner
credential issued by the Certified Financial Planner Board of Standards, requires relevant
experience, completion of education requirements, passing a comprehensive examination, and
adherence to an enforceable code of ethics. The CFP exams test the candidate’s knowledge of
the financial planning process, insurance and risk management, employee benefits planning,
taxes and retirement planning, and investment and estate planning.
The principal form of advancement for securities and commodities sales agents is an
increase in the number and size of the accounts they handle. Although beginners usually
service the accounts of individual investors, they may eventually handle very large institutional
accounts, such as those of banks and pension funds. After taking a series of tests, some brokers
become portfolio managers and have greater authority to make investment decisions regarding an
account. Some experienced sales agents become branch office managers and supervise other sales
agents while continuing to provide services for their own customers. A few agents advance to top
management positions or become partners in their firms.
Banks and other credit institutions prefer to hire college graduates for financial
services sales jobs. A business administration degree with a specialization in finance
or a liberal arts degree that includes courses in accounting, economics, and marketing
serves as excellent preparation for this job. Often, financial services sales agents
learn their jobs through on-the-job training under the supervision of bank officers.
However, those who wish to sell mutual funds and insurance products may need to undergo
formal training and pass some of the same exams required of securities sales agents.
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