A broker trainee is someone who is just starting out as an investment advisor. The trainee is in charge of learning the techniques and strategies necessary to provide financial advice to clients. The broker trainee’s job is to research potential investments and assist experienced brokers with the day-to-day tasks of executing trades and managing the firm’s clients’ investment portfolios.
Managing a company’s investment accounts entails a slew of rules and regulations. A broker trainee must be licensed by his or her local regulatory organization in order to begin a career in the investment management industry. The broker trainee must pass the Financial Industry Regulatory Authority® (FINRA®) General Securities Representative Series 7 exam in the United States. While every company is different, most companies will give a broker trainee four to six months to study and pass the exam. Although the FINRA® exam is unique to the United States, broker trainees in other countries will need to be licensed through their own regulatory body.
Following the acquisition of a license, the broker trainee will be in charge of reporting trades executed by senior brokers, as well as tracking price fluctuations and various technical indicators that can help brokers make profitable investments. The trainees will be responsible for presenting their company’s investment strategies to potential investors during the initial training phase. This initial training will assist trainees in better understanding their firm’s investment methodologies.
Many broker trainees will be allowed to invest a small amount of money after receiving some initial training. The broker trainee’s ability to establish a successful investment record will determine whether or not he or she is promoted to a senior broker. In some cases, a broker trainee’s employment may be terminated if he or she does not perform well in investing the firm’s capital.
Broker trainees work in a high-pressure, fast-paced environment. Because a broker trainee will be exposed to a wide range of investment opportunities and strategies, it is critical that anyone in this position be able to quickly learn and apply new skills. Many trainees are required to work more than 60 hours per week, and weekend and off-hours work is common.