Should I become a stock broker? If so, where?

June 13, 2007 9:21 AM

I have done initial interviews with both Ameriprise Financial and Garden State Securities. I think that being a stock broker could be for me. Should I go with Ameriprise, Garden State or somewhere else?

I am a recent college grad with a degree in Liberal Arts and minor in Philosophy, but I feel I have a good head for numbers. I have done sales and marketing in the past and I understand that the first few years would basically be sales while I build a client base. I look forward to the challenge as long as odds are not stacked too much against me.

I want to work for a reputable firm and do well by my clients and also have a chance to succeed myself. The current metrics I am using to judge which company to work for are: Name recognition, legal problems (2 3 4) institutional support and "product forcing"... aside from the other "normal" job criteria.

Name recognition: Ameriprise seems to win, as I see their commercials all the time. I imagine prospective clients would too. Never really hear of Garden State but they say they will soon open a large "New York Style" office here in Raleigh... sounds good.

Legal problems: (as above) ameriprise is 3 to 1, but the way I hear it any substantially big stock company has legal issues... that same site has 3 for Goldman Sachs and they are pretty reputable. At the same time I get a "Boiler Room" feel from the interview I had with Garden state, does anyone know if they are legit?

Institutional backing: I am not sure about Garden state yet, it seems like it will be informal mentoring by the other big shots in the office. Ameriprise seems more training oriented. Also the Garden state guy was pretty straight forward in saying that I will need a part time job for the first few months while I get clients... that put me off but I imagine that is normal (it happens for real estate agents too, I hear they need a year pay saved up to start in that biz)

Product Forcing: Ameriprise, I am sure, will want me to force Ameriprise products. Managed funds, Mutual Funds, Anuities, etc... regardless of the needs of the customer. Garden State seems like it will have more freedom and a chance to really learn all about stocks and securities and tailor my offerings to clients... perhaps that is naive?

Other: Ameriprise has 401k and health insurance, I am not sure about Garden State (we didn't get to that stuff in my initial interview with them). No or poor health insurance is a deal breaker, but assuming they have decent benifites its a wash.

I need to know: What things I am not considering? What red flags I am missing? Is the above analysis incorrect? Is there is another company that would be a better fit (keeping in mind fresh grad with no experience in the industry)? Or is stock brokering a doomed endeavor for a 20 something like myself?

posted by DetonatedManiac to work & money (6 comments total)

To be fair, and this is my brother's experience, it's not so much that you need a choice. You're going to get your feet wet and since you'll be someone else's lacky boy, go for the job that's going to give you the most perks. Because odds are that if you are good, you'll be in a new job in a year anyway.

Also, when they take you out for drinks with other trainees, stick to seltzer. My brother knew people who were fired when they showed up late the next day.
posted by parmanparman at 9:26 AM on June 13, 2007

I don't know the specifics of the firms you mention, except that Ameriprise was spun-off of American Express so it easily wins the name recognition contest.

But, if I were you, I'd think a lot about how to put yourself in a position to offer a truly valuable service to your clients. To me, that would mean a firm that's "open-architecture" in terms of products offered (i.e. offering the full variety of mutual funds, CDs, etc from all the available financial institutions) and a focus on minimizing fees. The later obviously contradicts the profit-seeking goals of you and your employer, but it's probably the most important factor for your potential clients. I suspect that the stock-broker who truly looks out for their clients' best interests ultimately has the more rewarding career in the end.

I'd recommend picking up David Swenson's book on personal investing. He's the CIO of Yale's endowment and has some good cautionary advice for the individual investor.

Although some of these firms violate the principles I'm advocating here, I'd recommend that you check out some of the big names in the industry. Smith Barney, Merrill Lynch, UBS, Morgan Stanley, Charles Schwab. I believe all of these firms offer some sort of open-architecture style of investment product selection. But, more importantly, they all hire tons of young college grads and have the resources to train them. Like parmanparman said, people move around quickly in this industry--a big brokerage house on your resume may help out in the early part of your career.
posted by mullacc at 10:02 AM on June 13, 2007

product forcing = sales

they call that thing you refer to at garden "open architecture" where they encourage you to peddle what's best for consumer and not just in house product

it's all about culture at these places, i'd definitely want to talk to someone on the inside, or spend a day or two shadowing someone before signing on

just make sure you feel OK w/culture
posted by Salvatorparadise at 10:23 AM on June 13, 2007

I don't work for Ameriprise, but my partner and I are getting into our second year with our Ameriprise financial advisor.

She has never pushed us into their products, and she has been very helpful at finding people who are well-versed in our particular needs (as two financially-merged women who can't be legally married). I don't know whether she is an outlier, as we've only worked with her and one other Ameriprise financial advisor, but if she is any indication, I would vouch for Ameriprise.

It has been all about what is best for us and our money rather than pushy sales trying to get us to use their systems/products/etc.
posted by fiercecupcake at 10:56 AM on June 13, 2007

Ameriprise is a reputable brokerage. However, even the most reputable brokerage will have a take-no-prisoners sales-management style. In particular, they work aggressively to separate the wheat from the chaff among just-hired junior reps.

What's good for clients is that consumer brokerages are now increasingly focused on getting in assets rather than getting transactions done or selling a disproportionate quantity of in-house product. (Citigroup recently gave up its mutual funds, so Citi's Smith Barney brokers don't even have any to push.)

This means that you will succeed not so much by pushing a particular mutual fund or a particular stock trade, but by effectively doing what fiercecupcake does: giving good advice, showing flexibilty and adaptability, and instilling confidence.
posted by MattD at 4:48 PM on June 13, 2007

what fiercecupcake's broker does -- although she might do it too, in whatever her field!
posted by MattD at 4:49 PM on June 13, 2007