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This article was co-authored by Michael McCutcheon, PhD. Dr. Michael McCutcheon is a career coach, psychologist, and award-winning public speaker who specializes in procrastination elimination, goal achievement, and increasing life satisfaction. With a background as a counseling psychologist, he guides clients toward becoming more aware of their desires and anxieties to break old patterns, create new habits, and achieve life-changing results. He also helps clients improve organization skills, embark on a new career, get promoted, get admitted into graduate schools, and transition from school to the working world. He is a published author and lecturer in graduate psychology courses at New York University (NYU), a position he has twice won the Teaching Award (2014 & 2019). His work has appeared in the press as a lifestyle and career expert for The Washington Post/The Associated Press, The New York Post, Scholastic, Lifehacker, and The Coca-Cola Company. He has served as a contributing writer for Out Magazine and featured panelist on National Public Radio (NPR).
There are 19 references cited in this article, which can be found at the bottom of the page.
This article has been viewed 47,802 times.
Brokers are licensed professionals who connect clients to suppliers so that the client can get a product or service that they want. For example, real estate brokers buy, sell, and rent properties and are licensed to own their own real estate businesses.[1] Stockbrokers, on the other hand, sell and buy securities from companies for their clients. Finally, freight brokers connect clients with shippers so that they can transport their goods at a fair rate. Regardless of which kind of broker you want to be, you'll need to get the right mix of experience and education and get licensed in the state that you live in.
Steps
Check the requirements to become a broker in your state. The requirements and restrictions to become a real estate broker vary from location to location. Usually, it’s required that you’re a lawful citizen and resident of the state that you want to practice in and are at least 18-years-old. Some states will restrict someone from getting a license if they have a criminal record. Check with your local real estate commission to see which restrictions and requirements apply in your state.
Take the classes required to become a broker. Most states will require brokers to have completed a course-load that includes the study of the different aspects of real estate. These classes could include courses like real estate practice, finance, property management, and real estate appraisal. The required courses that you need to take will differ from state to state. Some courses may be offered online while others will be in-class. Make sure the classes that you're taking are officially recognized by your state's real estate commission.[2]- Some states will only require you to take one real estate class.
- Check your local real estate commission's website to see which courses are required for your license.
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Work at a brokerage firm to gain experience. Most states will require experience working with an existing real estate broker before you can get your license. Look for real estate brokerage firms on job boards or online and apply to a position as a real estate agent. Real estate agents can be involved in the buying and selling process, but can't own their own real estate agency or brokerage. Brokers must also take more courses than an agent.[3] Once you get experience and know what you're doing, you can apply to get your license as a broker.[4]
Take the real estate broker test. If you take an officially sponsored class, they will usually offer the brokerage test at the end of the course.[5] If not, then you’ll have to visit your local real estate commission's website and apply to take the test. Many times there will be a fee associated with taking the test.
Pass the real estate broker exam. The brokerage exam will include the materials that were covered in your class(es). This could include subjects like agency management, finance, contracts, ownership laws, and valuation and appraisal.[6] Make sure that you study for the test and get enough sleep the night before to improve your chances of passing.
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Get an undergraduate degree in finance or a related field. While some states don’t have educational requirements to become a broker, many brokerage firms are looking for people with at least their undergraduate degree in finance, business, or accounting.[7] Getting your undergraduate degree will also give you the knowledge you need to understand financial markets.[8]- Those with an MBA may receive more job opportunities and higher salaries.
Pass the Series 7 exam. Stockbrokers must pass the Series 7 exam in order to offer general securities to their clients. The series 7 includes 250 questions that you must answer over a 6-hour period. In order to pass the test, you need to know how the aspects of selling corporate, municipal, and investment company securities.[9] You’ll also need knowledge of variable annuities, direct participation programs, options and government securities.[10]- To register for the test, find a testing location by visiting https://www.finra.org/about/locations.
- There is a fee associated with taking the test that could range between $50-$200 depending on where you live.
Get a job at a brokerage firm. Once you pass the Series 7 exam, you can legally trade securities to a client. Find a job with an existing brokerage firm by looking on job boards and search engines. You can also find local brokerage firms that are in your area and apply for an entry-level brokerage job through their website. Most companies will provide training for new brokers.[11]
Continue ongoing training to keep your license. In order to maintain your license, you need to take ongoing courses. The classes will cover regulatory and ethics elements as well as changing laws, practices, and technology.[12]- To register for the classes, visit https://ceonline.finra.org/application/user-registration.
Renew your license. If you work for a firm, they will cover the yearly renewal fee. If not, you’ll need to renew your license yearly with Financial Industry Regulatory Authority or FINRA. Visit the FINRA website and go through the renewal process on the website if you aren’t working at a firm.[13]- You'll need your personal information to fill out the renewal page.
- To renew your license yourself, visit http://www.finra.org/industry/renewal-payment-options.
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Get experience as a freight agent. Freight agents are the people who act as the middleman between the supplier and shipper. They track the freight and ensure that shipments are successfully delivered. There are existing freight brokerage firms that you can work at to get the experience to be your own broker.[14]- While no formal education is required, having good math and communication skills will help you as a freight agent.
- Getting your bachelor's degree in business may increase your chances of landing a job as an agent.
- There are a lot of work-from-home freight agent jobs that you can find on job boards.[15]
Decide which niche you want to work in. Do market research and find industries that are in need of more brokers. Decide if you want to ship general items that don’t require any special attention or whether you want to ship things like heavy equipment, perishable commodities, or hazardous materials.[16] Look at load or freight websites and see what items regularly need to be shipped.[17]- Determine what sets you apart from other brokers. If you have special skills or knowledge about certain goods or materials, it can help you decide which niche you should work in.[18]
Register your freight broker license. In order to be a broker, you need to get your license from the Federal Motor Carrier Safety Administration (FMCSA) using the Unified Registration System. To qualify for your license, you’ll need $75,000 worth of insurance coverage, or a Surety Bond or Trust Fund Agreement in the same amount. To register for your license, fill out the form at https://www.fmcsa.dot.gov/registration/broker-registration.[19]
Apply for a Unified Carrier Registration. As a broker, you’ll also need to complete a Unified Carrier Registration and renew it each year. The annual fee for the registration for a broker is $76.[20] To register your business, visit https://www.dat.com/brokers/carrier-monitoring/broker-startup.
Find clients who need to ship things. Start by looking in your network and find businesses that need to transport goods. You can win these customers over by offering lower rates or promising faster delivery. If you don’t have anyone within your circle that needs things shipped, sites like https://www.thomasnet.com/ have a list of suppliers who typically need shipment services. Make cold calls to companies in your area and start to build your client base.
Establish relationships with carriers. Load boards are online listings of drivers that can ship large shipments. You can find paid or free load boards online. Your job will entail connecting this carrier with the client. Compare rates and find a reliable shipper that you can use to deliver the client’s goods.[21]
Grow your business over time. As you connect to more clients and carriers, you'll have a lot more to manage. You may want to hire other freight agents to help you get more business and manage existing clients. If you want to hire employees, you'll have to register your company. You may also want to consider renting office space and creating a business plan.
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References
- ↑ https://www.bls.gov/ooh/sales/real-estate-brokers-and-sales-agents.htm
- ↑ http://www.dre.ca.gov/examinees/requirementsbroker.html
- ↑ https://www.realtor.com/guides/the-ultimate-real-estate-glossary-for-homebuyers/agent-broker-realtor-whats-the-difference/
- ↑ http://www.investopedia.com/articles/professionaleducation/10/6-steps-becoming-a-real-estate-agent.asp
- ↑ https://www.howtobecome.com/how-to-become-a-real-estate-broker
- ↑ https://uniontestprep.com/real-estate-license-exam/practice-test
- ↑ Michael McCutcheon, PhD. Career Coach & Psychologist. Expert Interview. 24 February 2021.
- ↑ https://www.financialplannerworld.com/texas-stockbroker/
- ↑ Michael McCutcheon, PhD. Career Coach & Psychologist. Expert Interview. 24 February 2021.
- ↑ http://www.finra.org/industry/series7
- ↑ http://www.investopedia.com/articles/professionals/040813/stockbroker-career-you.asp
- ↑ http://www.finra.org/industry/continuing-education
- ↑ https://www.financialplannerworld.com/texas-stockbroker/
- ↑ https://www.entrepreneur.com/article/37928
- ↑ https://freightbrokerbootcamp.com/blog/how-much-does-it-cost-to-become-a-freight-broker-agent/
- ↑ https://www.entrepreneur.com/article/37928
- ↑ http://bigcitydriver.com/2013/07/how-to-find-new-customers-5-sure-fire-tips-for-freight-brokers/
- ↑ https://www.invoicefactoring.com/factoring-blog/freight-brokers/importance-finding-niche-maintaining-flexibility
- ↑ https://www.fmcsa.dot.gov/registration/broker-registration
- ↑ https://www.dat.com/brokers/carrier-monitoring/broker-startup
- ↑ https://www.comcapfactoring.com/blog/what-is-a-trucking-loadboard/
About This Article
Career Coach & Psychologist
This article was co-authored by Michael McCutcheon, PhD. Dr. Michael McCutcheon is a career coach, psychologist, and award-winning public speaker who specializes in procrastination elimination, goal achievement, and increasing life satisfaction. With a background as a counseling psychologist, he guides clients toward becoming more aware of their desires and anxieties to break old patterns, create new habits, and achieve life-changing results. He also helps clients improve organization skills, embark on a new career, get promoted, get admitted into graduate schools, and transition from school to the working world. He is a published author and lecturer in graduate psychology courses at New York University (NYU), a position he has twice won the Teaching Award (2014 & 2019). His work has appeared in the press as a lifestyle and career expert for The Washington Post/The Associated Press, The New York Post, Scholastic, Lifehacker, and The Coca-Cola Company. He has served as a contributing writer for Out Magazine and featured panelist on National Public Radio (NPR). This article has been viewed 47,802 times.
Co-authors: 5
Updated: April 22, 2024
Views: 47,802
Categories: Finance Careers
Article SummaryX
To become a stockbroker, start by getting an undergraduate degree in finance or business so you can understand the financial markets. After graduation, pass the Series 7 exam to prove your knowledge of annuities, options, and government securities. Once you pass the exam, work for a brokerage firm in an entry-level position to get hands-on experience. You'll also need to take training courses every year to keep your license up-to-date, even after you find a job. For advice on how to become a real estate broker, read on!
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