How To Become A Broker

How to Become » How to Become a Broker

Becoming a broker, regardless of the line of interest, requires you to establish and sustain relationships with several clients and professionals within the field, gradually working towards multiplying your contacts, thereby facilitating the optimization of your revenue generation. Being the middleman has its limitations, but effectively carrying out your responsibilities will certainly show you the path that leads to a lucrative career. As of today, stock broking, land broking, shipping broking, commodity broking, and financial broking play a major role in providing candidates awaiting bright opportunities within their fields of interests, in the professional market.


Stock Broking

If you are thinking of becoming a stockbroker, you need to explore the realms of buying and selling of stocks on a commission basis. Joining multinational brokering firms subjects you to the trade practices of more than just shares. Therefore, if you choose to become an active competitor within the industry, you need to be thorough with the knowledge of insurance, mutual funds, foreign exchange, commodities, and other related financial principles practices.


There is no obligation as to a particular pattern of education to be followed in order to become a stock broker. The only qualification that you must possess is a good deal of interest in stock brokering and sound knowledge in mathematics, statistics, economics, and business management. Working merely with an intension of making money will only lead you towards a dying end of the profession; you need to possess deep interest in the financial affairs of multinational corporations and companies if you wish to grow in terms of your career.

Although the job does not require you to possess any specific academic background, you cannot expect to become a stockbroker as soon as you complete your graduation. You are required to gain some experience within the brokering sector and acquire licensure before you can start practicing the profession.

Becoming a licensed stock broker

In order to acquire a stock brokering license, you need take the General Securities Registered Representative Examination, which demands that you be employed in a brokerage firm for a minimum duration of four months. Upon clearing the examination, many states demand that you also pass the Uniform Securities Agents State Law Examination and the Uniform Investment Advisor Law Exam, which are also known as series 63 and series 65 exams respectively.

Following are a few points to be remembered:

  • Remain in constant touch with your clients to keep them informed of the national as well as the global market condition
  • Focus on one particular area of practice, where you will shine in terms of work, working towards developing your skills in a specific field of operations of your choice
  • If you come from the background of computes, it is recommended that you continue along the same line, learning about the implementation of information technology in stock broking
  • Engage in the management of your own stock portfolio, for it will help you to acquire deep knowledge about investments of varied nature, while helping you to develop a clear understanding on returns on investment and risk management.
  • Joining investment clubs enables you to gather information about various investment opportunities and financial analysis
  • Go for on-the-job training programs that are generally offered by brokerage firms, which will help you gain adequate amount of knowledge, thus preparing you for clearing the above mentioned examinations successfully.

Commodity brokering

If you possess deep interest in trading commodities, you should consider becoming a commodity broker. You need to know that commodity broking is more specific and specialized as compared to stock broking. You will be involved in extensive sales processes, often involving the preparation and maintenance of business books.


In order to become a commodity broker, you need to be licensed and registered with the NFA or the National Futures Association. You are required to pass the series 3 exam, which consists of two parts:

  • The first portion of the exam comprises of several questions to assess your knowledge in hedging, futures market knowledge, contracts and orders, and many related aspects of trading
  • The second part of the exam will test your understanding in various rules and regulations associated with the profession There are several online study materials that you can access for free. You may also opt for paid online training courses. Besides, your brokerage firm is likely to provide you with manuals and study materials that will brush up your knowledge, while preparing you for the examination.

You are required to fill out the 8-R form, containing essential information regarding your employment history for the past 10 years and your residential history for the past 5 years, and submit to the NFA. You are also required to share some information pertaining to your criminal history, including the details of any disciplinary actions along the line. Be sure to include accurate information, for your form will be reviewed by the FBI and upon completion of your background check, they forward your form, along with your temporary license to the NFA. You will also be required to submit your fingerprints at the local police station.

Following are a few points that you need to consider while working towards becoming a commodity broker:

  • As soon as you decide to enter this field of profession, start looking for a brokerage firm that specializes in commodities
  • You may also choose to work in the research department that most of the commodity brokerage firms normally have
  • Take initiates and learn more about the profession in order to put forth trade recommendations
  • Stay within the industry for more than two years and you will start loving your job, thereby driving you towards excellence within the field of commodity brokering

You are bound to find plenty of study materials and information regarding the licensure on the internet for free, which will certainly assist you to become a broker within no time.

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