A career in stockbroking can be both exciting and demanding. To become a stockbroker in Canada, you must have an aptitude for numbers and sales, which can be very challenging for a lot of people. But despite the rise in self-led trading platforms, stockbrokers are still highly in demand.
Canada’s stockbrokers are permitted to trade stocks, bonds, options, and other securities. In Canada, securities trading is a significant player in the financial industry.
With six times the daily trading volume of the Canadian financial markets compared to the U.S. Canada’s financial sector also appears to be the world’s most substantial. The World Economic Forum has ranked Canadian banks among the strongest in the world.
To start working in Canada, you might need to get a job and then go back to school to obtain your degree. Or get a degree first, if you have a sponsor/grant. Regulatory organizations also require you to be registered to trade stocks for others.
It doesn’t end there. This article will help you understand what you need to know to become a successful stockbroker in Canada.
Education Requirements for Canadian Stock Brokers
At least a bachelor’s degree is required to work as a stockbroker in Canada. Businesses will only consider candidates who have earned a college degree since that will demonstrate a robust educational background. Some prevalent specialized degrees include:
- BS-Business Administration
- BA-Global Business
To become a securities broker in Canada, you must complete the CSI Global Education’s Canadian Securities Course (CSC) (formerly the Canadian Securities Institute). It may be done before finding an employer or can be sponsored by your employer if already employed.
The said program will cover several aspects, including derivatives, fixed-income securities, equity transactions, corporations and financial statements, mutual funds, and more.
You must also develop the requisite skills. Stockbrokers need to have or improve specific skills. Communication skills are a must. Your selling skills are fundamental to being a successful stockbroker. Being naturally gregarious helps too, but you can cultivate these skills on the job.
Getting Hired by a Stock Brokerage Firm
Find a training firm. To succeed as a stockbroker, learn from the best. They will also fund your membership from one of the investment regulatory associations.
While on the job, you’ll learn how to handle customers. Also, you will learn how to evaluate securities. A firm will undoubtedly give you information on its product offerings. Usually, working in different departments will enable you to acquire many abilities.
You also need to work with the right size firm. Choose a smaller organization that will allow you to become better acquainted with coworkers. Of course, if you want a high-powered career, you should choose a vast corporation with greater name recognition.
Consider which regulatory agency is crucial to you. Some companies use the MFDA, while others use the IIROC (IIROC). Companies registered with the IIROC can provide a more extensive selection of investments.
For instance, organizations certified with the IIROC deal primarily with securities of all types, whereas firms licensed with the MFDA focus on managing mutual funds.
While the MFDA is licenced for Alberta, British Columbia, Saskatchewan, Nova Scotia, Ontario, New Brunswick, and Manitoba, it is also working on Newfoundland and Labrador. Licensing with the IIROC, however, is more complex.
Registering as a Licensed Stockbroker
The first step you should take is to take the Introductory Investment Course. This formal training course for investment representatives is conducted by the Canadian Securities Institute (CSI). This training is for thirty days. Take the course only if your employer tells you to.
The course is about basic investing strategies. It’s aimed to aid new hires in getting to know customers. Until you’ve found a job, this course isn’t available to you.
Make sure you pass the test. To get licensed, you must pass an exam with each board. For instance, you must pass the following exams: Canadian Investment Funds Course Exam, the Canadian Securities Course Exam, or the Investment Funds in Canada Course Exam.
Except for the first exam, all exams are determined by the CSI. Exams may be waived for those who have appropriate experience. To acquire a CFA charter, you need only a year of investment management experience.
You must also look for a mutual fund dealer willing to sponsor you. Basically, if you haven’t already found a position, you should. The dealer who wants to hire you has to support you. Enroll in courses that will result in this sponsorship. Before you’re able to trade, you must be sponsored by a firm.
Now that you have secured everything, all you need to do is try everything you can do in your capacity to succeed. Trials and errors are included in the list. Always ask your firm for help, and they are willing to cater to your concerns.