Steps to Become a Stockbroker

First and foremost necessity to become a stock broker or adviser is to have practical experience of selling and buying stocks. Even a layman can pick the rules and process of selling and buying of stocks after having worked into the stock market environment. A real and practical experience is more important than a proper qualification as after having a degree one needs to work in the market to earn experience before being able to start working as a broker. A broker is not simply have to buy and sell securities, commodities or shares, he/she has to regularly advise their clients, whether individuals or institutions. The clients are dependent on the broker’s advice to decide when to offload their stocks and when to repurchase them. A broker can make or break a client, since investment in the market is a very critical decision by an investor and if he she misguided they can end up losers and their trust is breached in the market forever.


  • 1

    Learning about Stock and Capital Markets

    It is essential to learn about selling and buying of stocks/shares, and to achieve this you have to work inside the market for sometime. It is also necessary to learn about some basic rules and regulations that govern the market and prevent different types of frauds or exploitation of investors. It is necessary to learn how the stock market works, and if you in the meantime also have some knowledge of capitals markets it is a great help. Otherwise, learning about stock markets is a must to work as a stock broker.

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    Business/Finance Education

    Although having a practical experience of the market and how it works is a great help to become a stock market broker, it is essential to have a proper business, finance or economics education. It is another way of getting into the market, as some security companies hire students in last year of their studies as interns to work with them. This is a way to get proper job and grow as a market broker in the longer run. Having graduation in business or related faculty helps a candidate to purse a career as a broker.

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    Getting License

    In some countries a stock broker has to sit a proper exam to apply for the license and in some your educational certificates are accepted with other requirements to grant you a license for working as a broker. A stock broker has to be employed in a brokerage house for an on-job training. Generally, the license granting agency or body is the Securities and Exchange Commission (SEC) and in some countries it is Financial Regulatory Agency or Authority that issue license to become a broker.

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    Continued Training

    It is necessary that you continue to take classes and other training programmes to learn about new rules and trading methods etc. The regulatory aspect of the stock market trading changes at a faster pace than other aspects and it is essential for a broker to keep updated about the changing rules and regulations affecting the market. He/she should also have knowledge of macroeconomic activities of the country that affect the market regularly.

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