A stock broker is a commissioned agent who arranges for selling or buying stocks or other financial instruments for his or her clients. The stockbroker sometimes is not needed these days when buying and selling can be done over the internet. Still, the earning potential of stockbrokers has never shown signs of decreasing.

I Am Not A College Graduate; Can I Become A Stockbroker?

Anyone who is interested can become a stockbroker, provided he has or she has the requisite grasp of the subjects required and a good understanding of the financial markets. Anyone from high school graduate to a Harvard scholar can become a stockbroker. However, these days it is desirable that aspiring candidates have a college degree due to the complex nature of the job and the larger grasp of the economy that is needed for making technical and commercial financial analyses.

Do I Need A License And What Are The Requirements For Obtaining One?

Yes; but before you get your license, there are exams that you need to pass in order to qualify to represent clients. Although licensing requirements vary from state to state, the overall requirement is roughly the same.

National Association of Securities Dealers, or NASD, conducts this licensing examination which is called the General Securities Registered Representative Examination, or Series 7 exam. After this examination, one is required to put in an internship of at least 4 months with a registered brokerage firm.

Most states also require a secondary examination. This is the Uniform Securities Agents State Law Examination, which is devised to test candidates knowledge in:

1. General knowledge in securities and stocks business

2. Customer protection laws, procedures and liabilities

3. Record keeping and administrative procedures

You will need to check whether your state requires you to execute a personal bond. Correspondence courses are also available, which is the most preferred mode of study chosen by candidates.

Isnt Working On Commission A Risky Proposition?

It depends on how you look at it. It can be compared to the classic case of two people looking at a half full glass. However, usually those who think they can make a career in this filed also have an in depth knowledge and strong belief that they can succeed in the profession. One long Bull run can cover the lean periods.

How Is the Market Competition?

For brokers there is usually never a long lean patch, even including the sluggish phases that followed the 9/11 attacks. The younger Baby Boomer generation, with their fast paced investment and lifestyles, keep entering the market in search of high returns. A new broker need not refrain from approaching clients of the older, larger brokerage firms. There is always a chance for winning some of them who are not satisfied by their services.

Stockbrokers also do double duty as investment advisors, real estate agents/brokers etc which complements their work as well as supplement earnings. The idea is to catch the investor to diversify his investment. If you want to know the earning potential: the median earning was $69,200 while the central half earned between $40,750 and $131,290.