What does a Broker do?
Published 3 min read
A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.
Broker job duties include:
- Researching and identifying properties that meet the investment criteria of clients
- Touring properties and evaluating their suitability for clients
- Negotiating purchase or sale contracts on behalf of clients
- Coordinating property inspections and overseeing any necessary repairs
- Managing the due diligence process to ensure all parties fulfill their contractual obligations
- Assisting clients with securing financing for their purchase
- Advising clients on the best way to market and stage their property for sale
- Keeping abreast of current market trends and conditions to help clients make informed decisions
- Continuing education to maintain broker’s license and keep up with industry changes
Broker Job Requirements
A broker is a professional who helps people buy and sell securities, such as stocks, bonds, and mutual funds. In order to become a broker, one must first obtain a bachelor's degree from an accredited college or university. After completing their undergraduate studies, individuals must then pass the Series 7 exam, which is administered by the Financial Industry Regulatory Authority (FINRA). Once an individual has passed the Series 7 exam, they can then apply for a job with a broker-dealer firm.
Broker Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Real estate market analysis
- SWOT analysis
- P&L forecasting
- Financial modeling
- Real estate market trends
- Financial statement analysis
- Business strategy
- Business development
- Investment banking
Related: Top Broker Skills: Definition and Examples
How to become a Broker
There are many different types of brokers, but the most common is the stock broker. Stock brokers buy and sell stocks and other securities on behalf of their clients. They typically work for a brokerage firm, but there are also many independent stock brokers.
Becoming a stock broker requires passing an exam administered by the Financial Industry Regulatory Authority (FINRA). The exam, known as the Series 7 exam, covers a wide range of topics related to the securities industry. Once you have passed the Series 7 exam, you will be registered with FINRA and will be able to start working as a stock broker.
In addition to passing the Series 7 exam, most stock brokers also have a college degree. While there is no specific major that you need to study in order to become a stock broker, majors that are helpful include business, finance, and economics.
If you are interested in becoming a stock broker, there are many different ways to get started. You can look for internships or entry-level jobs at brokerage firms, or you can start your own independent brokerage firm. Whichever path you choose, make sure to stay up-to-date on all the latest news and developments in the securities industry so that you can be the best stock broker possible for your clients.
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