Securities, Commodities and Financial Services Sales Agents
Additional Information
Duties
Financial services sales representatives often perform the following tasks:
- Calling potential customers to provide them with information and details about the services they may expect.
- Advice on how to buy or sell a certain stock.
- Invest in financial instruments, such as stocks and bonds.
- Commodities like grain, oil, and gold may be bought and sold.
- Maintain a close eye on the financial markets and particular equities.
- Provide suggestions for IPOs, mergers, and acquisitions based on an analysis of business finances.
- Analyze the income and cost of contracts.
Agents who work in the financial sector sell a wide variety of products to a wide variety of customers. If you work in a brokerage firm, you'll spend a large portion of your day engaging with clients and potential clients. Because agents handle enormous sums of money and must meet strict deadlines, their employment is often stressful.
Either electronically or in an auction-style setting on the floor of an exchange market, a security or commodity can be exchanged. Human traders are no longer needed to connect buyers and sellers in markets such as the National Association of Securities Dealers Automated Quotation system (NASDAQ). NYSE, for example, relies on floor brokers to carry out trades.
Types of securities, commodities, and financial services sales agents include, but are not limited to:
Individual clients can buy and sell securities and commodities directly from a broker's office. Investing decisions are made based on a thorough understanding of a client's objectives and financial resources. Their clients' knowledge of financial concerns may range widely.
As a broker, finding new clients is an important element of your profession. A list of possible clients must be compiled before they can begin phoning potential customers. Some agents join social clubs, while others rely on word-of-mouth from happy customers.
Investment bankers link firms in need of financing with investors who are interested in giving that financing. Investment banks perform the majority of their work via a process known as underwriting. Prior to issuing new securities, banks offer their advising services to assist businesses in issuing new shares or bonds, which are subsequently resold to individual investors.
Initial public offerings (IPOs) and mergers & acquisitions are two of the most essential services provided by investment bankers. In an IPO, a firm issue its first share of common stock to the general public, making it available for investment. It is the responsibility of investment bankers to evaluate the company's value and guarantee that it fulfills the regulatory criteria for public trading.
Investment bankers are also involved in mergers and acquisitions (when two corporations merge) (when one company buys another). To ensure that the deal goes as planned, investment bankers offer advise throughout the process.
Trading in stocks, bonds and commodities is handled by sales representatives and traders at investment banks. They take orders from customers and carry out the deals themselves. However, investment banks, hedge funds, and private equity organizations employ the majority of these professionals. Trading involves making split-second decisions due to the extreme volatility of the markets. The decision of a trader may have a significant impact on the profitability of a deal, which is why the price of a trade is so critical.
Brokers on the floor of a stock or commodities exchange operate in a big room where trading takes place. Traders place an order for a security, and brokers negotiate the price, conduct the sell, and send the purchase price to the trader.
A wide range of banking, securities, insurance, and associated services are offered by financial sales agents to people and corporations, typically tailoring the services to their specific financial needs. As part of their outreach efforts, financial advisors explain their offerings, which may include checking and savings accounts as well as loans and certificates of deposit.
Education
A bachelor's degree is often required for employment as a securities, commodities, or financial services sales representative. Business is one of the most prevalent fields of study, and it often includes courses in finance, accounting, and economics. Employers may prefer to recruit individuals who have worked as interns over the summer months.
A master's degree in business administration (MBA) is generally required for high-level employment in the securities sector, and many agents eventually get one. For job searchers, the MBA's exposure to real-world business procedures is a huge plus. For those who have an MBA, they are generally given more prestigious positions, greater pay, and generous signing bonuses.
Training
Employees learn about their company's goods and services while they are on the job, which is standard practice for most businesses. Training in securities analysis and selling tactics is available to trainees at big corporations, where they may learn from experts in the field. To provide its trainees a wide perspective of the securities industry, several firms rotate their interns across different divisions.
If you're in the financial services industry, you need to stay up with new goods and services. They often attend conferences and seminars.
Registration, Certification, and Licensing
Brokers and investment bankers must register with the Financial Industry Regulatory Authority as representatives of their company (FINRA). Potential agents must first complete a series of tests before they may receive a license.
For those who want to market various financial goods and services, there are several licenses to choose from. Licensing requirements for traders and other types of sales agents vary by company and field of expertise. When selling securities or insurance, financial services sales representatives may be required to be licensed. Most companies provide on-the-job training to assist their staff pass the licensure tests.
To preserve their licenses, FINRA-registered agents must attend continuing education programs. Legal requirements or new financial goods or services are taught via computer-based training courses.
Certification is often preferred by companies, even if it isn't necessary. The CFA Institute sponsors the Chartered Financial Analyst (CFA) certification for brokers, investment bankers, and financial services sales agents. With a bachelor's degree or four years of comparable job experience, candidates must pass three tests that require hundreds of hours to prepare for. Additionally, applicants must hold a valid passport valid for travel outside of the country of residence. Completing this course will provide you a solid foundation in a variety of financial topics such as asset valuation, financial markets/instruments, and corporate finance.
Work experience is not a requirement to apply, however it is encouraged.
Advancement
Sales agents in the securities, commodities, and financial services industries typically rise up the ranks by gaining a large number of clients. In the beginning, novices tend to deal with the accounts of individual investors, but as they gain experience, they may work with larger institutions, like banks and pension funds. Having an MBA may also provide doors for growth.
Brokers who pass a series of examinations are promoted to the position of portfolio manager, giving them additional discretion over an account's investments.
While still providing services to their own customers, some seasoned sales agents take on the role of branch office manager, where they oversee the work of other sales representatives. One or two agents rise up the ranks and become executives or owners of their companies.
A common "up or out" strategy is for entry-level investment bankers to be either promoted or fired after two or three years. For investment banks, this approach is used to guarantee that new employees aren't stuck in entry-level roles for lengthy periods of time.
Qualities that are critical to success
Critical thinking abilities. Analytical skills are essential for sales representatives in the securities, commodities, and financial services industries to evaluate possible agreements. Programming abilities are also included, which are put to use in the analysis of financial products.
Customer-service abilities. Salespeople in the commodities, securities, and financial services industries need to be convincing and able to put their clients at ease with their suggestions.
The ability to make good decisions. Investors in investment banking must make quick judgments, with big quantities of money at stake, in order to make their money work.
A stickler for the smallest of details. There may be big ramifications for even the tiniest of modifications in initial public offerings and merger & acquisitions.
Initiative. "Cold" sales calls to clients who have not been referred and who were not anticipating the contact are necessary for financial services sales representatives to build their client base.
Skills in math. Agents in the securities, commodities, and financial services industries must be proficient in mathematical concepts and procedures, including investing formulae.
Pay
Sales agents in the financial services industry made an average of $64,770 per year in May 2020. When half of an occupation's workforce earns more than the median wage, the wage is said to be the "median." Between the bottom 10% and the top 10% of earners, there was a wide disparity in income.
Job Projections
Securities, commodities, and financial services sales agents are expected to see a 4% increase in employment between 2020 and 2030, which is lower than the average for all occupations.
