How To Become A Stock Broker

How To Become A Stock Broker

How To Become A Stock Broker A stock broker is a person who gives financial advice and counseling to his clients in matters of making the best investments which will fit their goals and is well within their reach. He buys and sells stocks on his client’s behalf. Stock brokers possess information like name, contact number and address, PAN number and demat account details of their clients and help the client to place orders which are based on the availability of funds in the client’s account.

When trades are done, it is the duty of the stock broker to issue contracts notes. He must also send reports to his client containing all the information about the transactions that have been done in the past on a regular basis. Some brokers work online and upload all the details on their web site creating a unique account for each client to access all the information.

In order to become a stock broker, a person must have experience in working for a brokerage house. The reason for this is that only the members of the stock exchange can buy and sell stocks in the stock market. The other name for a stock broker is securities and commodities sales agent.

He should be registered as a portfolio manager with the SEBI and there should be an agreement made between the stock broker and client before the broker advises the client to sell and buy stocks. There are a few steps to become a stock broker and they must be accomplished by all means.

Become A Stock Broker


A person can become the trading member or a stock broker of the stock exchange if he is at least 21 years of age and is a graduate. The person should have 2 years of minimum experience in activities which are related to security, investment consulting, portfolio manager, financial services or merchant banker. A person who has defaulted in the stock exchange, is bankrupt or has been involved in fraud cannot become a stock broker ever.


Though you only need to be a graduate to become a stock broker, it is better to plan your education from the beginning.

Become A Stock Broker

Getting a bachelor’s degree in economics, business and finance will be of great help in providing you with all the basic information about the stock market and related money matters. You can get an added advantage by getting yourself a postgraduate degree as this will help you to beat your competitors easily.

Good Knowledge of Stock Market

In order to become a stock broker and that to a successful one, it is important to have a thorough knowledge and interest in the operations that go on in the market. In order to strengthen your knowledge, you should watch all the financial news shows on a regular basis and check different stocks to see which have risen and which have fallen.


While you are pursuing your education, take out time to do an internship with a reputed successful broker in the last year of your college. This will help you to get an insight of the whole stock market and you will get firsthand experience of how it is to become a stock broker. You will also be able to observe your employer closely to see what decisions he makes in a given scenario and how he analyzes the market from his personal point of view.

Own Investment Portfolio

It is good to manage a small portfolio which belongs to you so that you get an actual feel of the whole market and understand how it really works.

Become A Stock Broker

You can also show this portfolio to your potential clients to make them understand your vision and capabilities better. They will put their faith and confidence in you and let you take the front seat in terms of buying and selling their stocks and handling their money.


You may become a stock broker if you have passed an examination which is designed especially for stock brokers and only then do you get your license to work as a stock broker. However, in order to be eligible for the examination, one must have worked in a brokerage house for at least 6 months where he would also get on-the-job training.

A minimum percentage of 70 percent must be accomplished in this examination to become a broker. A bond may also be posted along with passing the General Securities Registered Representative Examination.

Two more examinations, namely, Uniform Securities Agents State Law Examination and Uniform Advisor Law Examination needs to be passed in many states if one wishes to become a state broker. Once you have passed all the necessary examinations, you get registered with the Financial Industry Regulatory Authority (FINRA) to become a representative of brokerage.

Also Read

How To Become A Stock Broker
Careers In The Stock Market
How to Invest In the Stock Market
The BSE Stock Exchange

Keeping up with Developments

There are many classes which help the brokers to keep up with the latest developments that are happening in the stock exchange market and this will help to not only increase your knowledge but also enable you to keep revising your previous knowledge thoroughly. You will also require these classes so that you are able to maintain your license in the future.

Money Management

The stock market is all about managing your client’s money and investing it in the right places. Therefore, it is important to understand money management and related investments well.

Stock Broker

You should read books which offer a lot of knowledge and insight about money matters to increase your knowledge and understand what it takes to build good portfolios.

Confidence and Communication

A stock broker is a person who is able to make decisions quickly, analyze the market and also have the courage to take the risk of utilizing someone else’s money and working on it. You should be confident about what you are doing.

You should communicate with your client to give thorough information as to what is happening in the market and what you think is going to happen. If your client trusts you and he can blindly give his hard-earned money to you for investing in the share market, you can be rest assured that you have become a stock broker and that too, a successful one.

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