Independent Stock Brokers

Stock brokers are responsible for buying and sellingknowledgeable of the steps to take in order to
shares and other securities in the stock market. Theybecome an independent stock broker.
do this on behalf of individuals or corporations. ThisBefore your career as one can become a reality, you
process of buying and selling is only permitted bywill need to become more qualified. To do this you
members of the stock exchange market. As a result,will need to register to sit the Series 7 Exam at the
when investors desire to buy or sell stocks, theyNational Association of Independent Securities
must obtain the service of a stock broker. TheseDealers. This exam contains 260 questions and has
individuals are able to offer advice and counsel, toduration of approximately six hours. You will need to
the clients based on their desired investment.have a score of 70 percent of greater in order to
Information regarding the client's needs and financialpass. This exam tests your understanding of the
ability is gathered by the broker, who then decidesdetails of the securities market and how accurately
on the best investment for his clients. Based on theyou can explain this to a client. It also tests your
investment plan chosen, he conducts the transactionability to make the necessary recommendations on
on the buyer or sellers behalf.an investment, based on suggested cases.
Currently, many brokers have decided to launch outThe next step you will need to take. is to register as
on their own, as independent brokers, in an attemptan independent broker. This is done with the
to make their own decisions and pocket more of theSecurities and Exchange Commission by completing
income generated. This move will be an advantageand filing a FOCUS form. This form can be filed
for many, as there are many clients who prefer toelectronically or through the mail.
be associated with an independent broker, instead ofIn order to complete the process, you will then be
a large brokerage firm. This is because, they believerequired to open an account with a brokerage firm,
that independent stock brokers are more objective,such as Schwab or TD Waterhouse. This brokerage
will face less conflicts of interest and will put thefirm will act as a keeper for funds you may hold on
interest of the client first.behalf of your clients. Independent stock brokers are
Every year millions of new investors enter the stockfree from the burdensome fees that brokerage firms
market, with enough new business to overwhelmtend to charge traditional stock brokers that they
stock brokers, making it hard for them to addressemploy.
every investor's demand. This is an indication thatAfter completing these three crucial steps, you may
many new opportunities are being made available forthen begin to seek clients and conduct their
an independent stock broker. However, in order totransactions on their behalf, while pocketing majority
take advantage of these opportunities, one must beof the fees and commissions.