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What Does a Broker Trainee Do?

By K. Reynolds
Updated Mar 03, 2024
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A broker trainee is a person who is beginning a career as an investment adviser. The trainee is responsible for learning the techniques and strategies needed to provide financial advice to his or her clients. It is the duty of the broker trainee to analyze potential investments and assist experienced brokers in the day-to-day tasks associated with executing trades and managing the investment portfolios of the firm's clients.

There are many rules and regulations involved in managing the investment accounts of a firm. In order to begin a career in the investment management industry, a broker trainee will need to be licensed by his or her local regulatory organization. In the United States, the broker trainee will need to pass the Financial Industry Regulatory Authority® (FINRA®) General Securities Representative Series 7 exam. Although every company is different, most firms will give a broker trainee four to six months in order to study and pass the examination. The FINRA® exam is unique to the US, but broker trainees in other countries will also have to be licensed through their unique regulatory organization.

Upon obtaining a license, the broker trainee will often be responsible for reporting the trades that have been executed by senior brokers as well as tracking price fluctuations and various technical indicators that can assist brokers in making profitable investments. During the initial training phase, the trainees will be responsible for presenting the investment strategies of their company to potential investors. This initial training will help the trainees to gain a better understanding of the investment methodologies of their firm.

After obtaining some initial training, many broker trainees will be allowed to invest a small amount of capital. Establishing a successful investment record is critical for the broker trainee, as it will help determine whether or not he or she is promoted to a senior broker. In some cases, if a broker trainee does not perform well in investing the firm's capital, his or her employment may be terminated.

Broker trainees work in a fast paced and stressful environment. A broker trainee will be subjected to a wide variety of investment opportunities and strategies; therefore, it is important that anyone in this role be able to learn and implement new skills quickly. Many trainees are required to work over 60 hours a week and working during the weekend and off-hours are not uncommon.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
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