A securities representative is an individual who is licensed to sell securities such as stocks, bonds, and futures, and has the legal capacity to serve as an agent. They have to do a number of things. For example, a securities representative must advise their clients on investment strategies and how to best let their money work for them. That requires the representative to not only maintain a client base, but also stay abreast in the latest developments in the financial and business worlds.
Despite all that hard work however, it can be a very fulfilling career, in more that one way. A securities representative may have a lot more freedom in their schedule than would an individual employed in other professional fields. From a remunerative or financial standpoint, working as a registered securities representative can be an especially rewarding career.
Becoming a securities representative requires no special education, thought college courses in economics, finance, or business may come in handy nonetheless. It would also be beneficial to earn a bachelors degree, particularly in one of those fields as well. Instead of a prescribed education course, however, individuals become securities representatives by passing a test, the General Securities Registered Representative Examination. Commonly known as the Series 7 Exam, the test is administered by Financial Industry Regulatory Authority, or FINRA.
Because of the high degree of responsibility associated with being a securities representative the entire industry is subject to federal regulation. The test itself is six hours long and consists of 260 questions, of which only 250 actually count towards the score. The questions cover the topics of Prospecting for and Qualifying Customers, Evaluating Customer Needs and Objectives, Providing Customers with Investment Information and Making Suitable Recommendations, Handling Customer Accounts and Account Records, Understanding and Explaining the Securities Markets' Organization and Participants to Customers, Processing Customer Orders and Transactions, Monitoring Economic and Financial Events, Performing Customer Portfolio Analysis and Making Suitable Recommendations. Scoring in the 70th percentile or higher is a passing score and entitles the test taker to a general securities license. In order to qualify to even take the exam, an individual needs to gain sponsorship from a firm.
Even after acquiring their license, securities representatives must maintain their licenses by participating in continuing education classes.
However, it is a very financially rewarding career with the Bureau of Labor Statistics reporting the average salary for securities representative as $68,680.
Data provided by the Bureau of Labor Statistics
The salary range for Securities begins around $40,500 and usually tops out around $122,270, with a mean in the neighborhood of $81,385. This is about 87% higher than the national average for annual salaries.
In order to qualify for most Securities positions, you typically need to have a Bachelor's Degree or higher.
Data provided by the Bureau of Labor Statistics
The growth outlook for Securities careers is estimated at about 9% while the estimated growth for all career fields over that same span is at about 10.12%. Over the next six years, Securities jobs are expected to grow at a 12% lower rate than the national average for annual salaries.