You can think about becoming a financial dealer if you wish to work in the investment sector. Financial dealers complete a thorough education in the finance sector and obtain licenses before beginning their jobs. You can evaluate if this profession is right for you by knowing the entry requirements.
In this post, we go over the process of becoming a financial dealer as well as the pay and career prospects for this occupation.
What is the role of a financial dealer?
The following duties are under the purview of a financial dealer:
- Obtain information about governmental rules, market circumstances, and securities.
- Investigate the financial situation of the clients.
- Give guidance and information about the background and prospects of different businesses and assets.
- Sell and purchase commodities on behalf of clients
- Inform clients about trade details and comply with their requests.
- Determine and keep track of transaction expenses.
- Understand and interpret information from financial publications and securities reports
Specialization areas include:
- Commodity traders connect buyers and sellers to negotiate private purchases and set up sales through recognized marketplaces. Financial traders and brokers may advance to the position of merchant banker with time and possibly additional training.
- Financial sector dealers sell and redistribute equity assets on behalf of financial firms, as well as purchase and sell securities inside financial markets.
- Financial advisors offer their clients guidance on all facets of money management, including taxation, pension, redundancy, superannuation, insurance, and real estate.
- In the corporate and market sectors of the banking business, merchant bankers function as mediators, manage significant financial transactions, and provide financial goods and services. Additionally, they work in investment banking, stocks and shares, and corporate loans.
- On behalf of their clients, stockbrokers purchase and sell bonds and stocks. This position has a great deal of responsibility because those who work in it are legally required to give solid advice. Growth opportunities are typically extremely strong after gaining experience.
How to work as a financial dealer
The following are the measures to take to qualify as a financial dealer:
1. Obtain your high school diploma or the equivalent.
Being a year 12 graduate and having the necessary credits for an Australian Tertiary Admission Rank (ATAR) can help you be eligible for your degree. Focus on learning English and math in years 11 and 12, as these subjects are frequently needed to be admitted to relevant universities.
A vocational program can help you become ready for university if you decide to go into finance after dropping out of school early or if your ATAR is lower than the minimum required for your desired degree. You may be able to get a suitable bachelor’s degree with the help of a Certificate IV in Tertiary Education. This course is offered by TAFE, several universities, and independent training organizations.
2. Obtain a bachelor’s degree
Choosing a degree in a field like finance or business is beneficial, but a financial dealer does not have to major in a particular field to succeed in their employment. You could obtain a bachelor’s degree in business management, accounting, finance, or economics. You can take advantage of internship opportunities offered by your school while earning your bachelor’s degree to expand your professional network and obtain real-world experience.
Financial dealers usually need a degree that has been approved by the Financial Planning Association or the Financial Services Institute of Australasia (Finsia). The minimal educational qualification for financial dealers is a bachelor’s degree. Degrees in related fields include:
- Bachelor’s Degree in finance
- Bachelor’s Degree in accounting
- Bachelor’s Degree in economics
- Bachelor’s Degree in business
- Bachelor’s Degree in Actuarial Science
After earning a bachelor’s degree in a non-related discipline, you may decide to change occupations later in life. In this case, a postgraduate degree in finance may be helpful. Postgraduate degrees that are relevant include:
- Master of Economics
- Master of Finance
- Master of Accounting
- Master of Business Administration
- Master of Applied Finance
3. Think about getting a master’s degree
You might think about obtaining a master’s degree after earning your bachelor’s degree. Regardless of whether they have an undergraduate degree in finance or a similar field, students may obtain a master’s degree in that field. An applicant might need to pass a few prerequisite classes before being admitted to a master’s degree, but this type of program can equip students with the fundamental skills they need to be successful as financial dealers. A master’s degree in finance, for instance, can offer you skills in data analysis, risk assessment, and investment planning.
4. Fill out an application for an AFS license.
The Australian Securities and Investments Commission requires an AFS License from anyone operating a firm that offers financial advice or deals in financial goods (ASIC). Your license demonstrates that you operate your financial business in a responsible, honest, and effective manner. If you want to get a license, you must provide copies of:
- Personal Information Statement
- Educational background
- Recently conducted bankruptcy checks and national police
- Two professional references
5. Look for an entry-level position.
You can start looking for an entry-level job when you complete your degree. Prospective financial dealers can start their careers as insurance analysts, data scientists, or financial analysts. Your ability to interact with clients and improve your financial education can both be improved by working in these kinds of professions.
6. Pass the required licensing examinations
Financial dealers must complete various licensure examinations before they may work in the US. The Financial Industry Regulatory Authority offers the Series 7 and Series 63 tests, which you can prepare for and take. You can purchase and sell securities such as bonds, stocks, and unit trusts after completing these exams. Additionally, you are permitted by law to counsel customers regarding their finances.
A financial dealer may decide to take additional exams to further out their credentials after passing these foundational certification tests. Some companies could have extra certification requirements for applicants. For instance, the Series 3 examination can be taken to acquire and trade commodities.
7. Fill out job applications for financial dealers.
You can start applying for work as a financial dealer once you have earned your certificates. Make sure to emphasize in your CV and cover letter your education, professional experience, and distinctive skill set. To show the hiring manager why you would be a good employee, make sure to customize your cover letter for each distinct position you apply for.
8. Become a member of a trade association
Some businesses favor hiring members of Finsia of the Financial Planning Association. Even though membership in these organizations is optional, doing so can improve your job prospects. Additionally, members have access to exclusive professional development activities including financial lectures and networking gatherings.
A financial dealer’s working environment
A financial dealer might work in a variety of settings throughout their career. They might be employed by public or private stock brokerage firms, for instance. Banks, law firms, accounting firms, and financial management firms are some more career options.
Financial dealers spend the majority of their time at a computer in the workplace. They might get to go to trade on a stock exchange’s trading desk or sit down with customers to talk about their financial objectives. The majority of financial dealers only operate during open hours of the stock market. A financial dealer might need to put in more hours if they have clientele from other countries. Financial dealers who exclusively work with clients in the United States typically don’t have to put in overtime, work on the weekends, or work on some federal holidays.
Skills that financial dealers need to succeed
Financial dealers excel in their positions by utilizing a wide range of technical and soft abilities. Employers of financial dealers want individuals with the following qualifications:
Knowledge of and enthusiasm for money
To identify trends and forecast which securities and commodities to buy, financial dealers need to have a solid understanding of how financial markets operate. Financial dealers can choose which securities and commodities to sell and when to execute these transactions with the help of this information. Their understanding of finances also aids in the creation of accurate and useful financial records. They keep track of pertinent financial news because they have an interest in finance.
Math
Math abilities are useful to financial dealers because they enable them to calculate transaction costs, track profits, and losses, and produce financial reports. Use algebra, statistics, and mathematics to try to boost your confidence. They also perform calculations correctly and fast. While financial dealers can use calculators to their advantage, they still require good mathematical skills to spot any odd transactions in their reports and fix any mistakes.
Knowledge of applicable laws
Financial dealers are required to conduct their business in compliance with all applicable rules and regulations. These include the federal regulations listed below as well as the Australian Securities and Investments Commission’s (ASIC) conduct guidelines for the sector of financial services.
- 2001 Corporations Act
- The 2006 Anti-Money Laundering and Counter-Terrorism Financing Act
- The 2010 Competition and Consumer Act
- Australian Consumer Law
- National Consumer Credit Protection Act of 2010
- Amendment to Corporations (Future of Financial Advice) Act of 2012
Computer literate
Financial dealers use computers to organize financial transactions, process massive volumes of data, and execute sophisticated computations. These experts frequently feel at ease using computers to browse financial news, keep an eye on the stock market, and purchase and sell securities and commodities. Because they are accustomed to using top financial software, they can more easily record monetary operations and create financial reports.
Effective decision-making and judgment
Financial dealers must have sound judgment and the ability to make decisions because they frequently handle significant financial transactions. They can buy and sell the proper securities and commodities at the appropriate time to maximize earnings thanks to their skills. Financial dealers or their clients may incur costs as a result of hesitation.
Stress control
When completing high-value deals and keeping track of market fluctuations, financial dealers employ stress management techniques to cope. Their ability to manage stress enables them to remain resilient and motivated because their profession can be dangerous. They make sure they can adjust to unforeseen outcomes and change course to cut losses.
Self-management
Financial dealers that have good self-management abilities can work alone. Financial dealers frequently work alone for extended periods, whether they are managing their portfolios or engaging with clients. Self-management abilities aid them in maintaining their motivation and focus during these times. Financial dealers perform more precisely and consistently for their clients when they have a clear focus.
Customer care
Financial dealers who provide clients with advice and execute transactions on their behalf usually exhibit good customer care abilities. These abilities enable them to establish relationships with customers and relate to them on a personal level. Clients are more likely to trust their financial advisors to manage their finances wisely when they develop a connection with them. Additionally, they have a favorable opinion of their financial advisors and are more willing to share that opinion with others. Positive referrals can increase a financial dealer’s clientele and reputation.
Communication
The ability to communicate effectively is crucial for financial dealers who interact with clients. These abilities enable them to report financial transactions straightforwardly and to offer financial advice. They can comprehend their clients’ financial problems and aspirations because of their excellent communication skills. They are aware of the inquiries that will be most helpful if they require more information about their client. They can produce accurate, usable financial records because of their great communication skills writing.
Other necessary skills for financial dealers include:
- Knowledge of how to use computers and financial software
- Having the capacity to calculate quickly
- Knowledge of how to conduct market research
- Ability to operate autonomously Demonstration of analytical, problem-solving, and critical thinking abilities
- The capacity to build client trust and the capacity to communicate complicated ideas in an understandable manner
Average pay and the future of employment for financial dealers
Although Glassdoor Salaries doesn’t have typical pay statistics for financial dealers, it does have information for the occupation that a financial broker is most closely associated with. An average financial broker earns $118,665 annually. Depending on the company a financial dealer works for and where they live, they may receive different annual compensation. If financial dealers have obtained a postgraduate degree or have a significant amount of professional experience with well-known companies, their earning potential may be higher.
The Bureau of Labor Statistics estimates that over the following ten years, employment opportunities for people with financial specialization will increase. The employment forecast for financial experts and personal financial counselors is expected to increase by about 5% between 2020 and 2030. This rise is comparable to the 8% average growth across all occupations.
Personal qualities needed by a financial dealer
- Excellent interpersonal and communication abilities
- Knowledge of computers and the ability to calculate rapidly and precisely
- Independence in work
- Ability to function under stress Research aptitude
- Planning and analysis abilities
- A keen interest in the financial sector
Educational Requirements for Financial Dealers
Typically, a university degree in business, accounting, finance, economics, or actuarial studies is required to work as a financial dealer or broker. A double degree may boost your chances of getting into this line of work (possibly merging law and a relevant discipline). Typically, you must get your Senior Secondary Certificate of Education to enroll in these courses. English and mathematics prerequisite courses or presumptive knowledge are typically required. Various universities have different admittance criteria, and some even allow for external study. For further information, get in touch with the institutions that interest you.
Employment
This field has a competitive entry process. Companies typically look for candidates who can show a solid academic background. Gaining the experience necessary for development takes time, and many employers require specialized training or related experience.
- Organizations that provide financial planning services
- Financial institutions and cooperative building societies
- Financial and legal procedures
- Financial and investment-related organizations
- Self-employment, working as a stockbroker or financial consultant
Entry-Level Education
A university degree in business, accounting, finance, economics, or actuarial studies is typically required to work as a broker or dealer in the financial markets.
Typically, senior secondary school diplomas or an equivalent are required to enroll in these courses. Before attending university, you should learn English and math.
To be employed in this sector, you must have the appropriate credentials. You must complete the training requirements set forth by the Australian Securities and Investments Commission (ASIC) to obtain a license.
Conclusion
Dealers are individuals or businesses that purchase and sell securities on their behalf, whether through a broker or not. The Securities and Exchange Commission (SEC) oversees dealers. Dealers are crucial because they review securities, develop markets in securities, and offer investors investment services.
Frequently Asked Questions about Financial Dealers
Listed below are the responses to frequently asked inquiries about turning into a financial dealer.
- What kind of education is required to work as a financial dealer?
The minimal educational requirement to work as a financial dealer is a bachelor’s degree certified by the Financial Services Institute of Australasia or the Financial Planning Association. Before enrollment in a degree course, you must finish year 12 or have an equivalent occupational qualification.
You can acquire the essential skills required to work as a successful financial dealer through degrees in business, basic finance, and finance specializations like economics and actuarial science. You can choose to enroll in the degree program that interests you the most since you can become a financial planner with any degree that has been approved by the Financial Services Institute of Australasia or the Financial Planning Association.
- What period is required to qualify as a financial dealer?
With full-time study, you might earn a university degree within as few as three years after high school graduation. It takes 1.5 to 2 years of full-time education to complete a postgraduate degree. Before you apply for a position as a financial dealer, give ASIC time to process your AFS license.
- What are the employment prospects for financial dealers?
The future is looking rather well for financial traders. According to the Australian Government’s Job Outlook website, chances for financial dealers are expected to expand moderately. According to the report, 16,700 financial dealers were employed nationwide in 2019. 17,200 persons are anticipated to work in this capacity nationwide by 2024. The majority of the nation’s financial dealers are anticipated to be employed by insurance and banking service organizations.