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Step 1: Enroll in a Relevant Degree
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Step 2: Complete an Internship
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Step 3: Find Employment
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Step 4: Register with FINRA and Pass Exams
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Step 5: Complete an Accredited Master of Business Administration Degree
Step 1: Enroll in a Relevant Undergraduate Degree Program
While a graduate-level degree is often helpful for job advancement, most entry-level stock broker and trader positions only require an undergraduate degree. This field does not require a specific major, so you can choose a degree option that suits your specific interests. It is recommended, however, that prospective stock broker and traders major in something finance or business related. Common undergraduate degrees include accounting, business, finance, and economics. The courses generally offered by these programs are preferred by employers, especially larger firms. Bachelor’s degrees usually consist of 120 credit hours of coursework that can be completed in four years by most full-time students. Online programs are also available, but may require five to eight years to graduate for students attending school part-time. Your specific curriculum will depend on the major you choose.
Step 2: Complete an Internship with a Financial Firm
Many undergraduate students interested in becoming stock brokers or traders choose to apply for an internship in the field before graduation. While most degree programs do not require internship completion, the experience and connections gained through these experiences can be invaluable. In fact, large brokerage firms and investment banks frequently hire summer interns and then offer full-time employment after graduation to those individuals who are most successful.
Stock broker and trader internships offer a variety of benefits, including:
- Real-world training and work experience
- Opportunities to apply academic theory and best practice
- Experience working with a financial team
- Access to potential professional mentors
- Skills development
- Networking
You will need to research your college or university’s specific internship application process. These vary per institution. Most schools have a career center and/or career counselor who can provide more information. You may also consider speaking with a finance or business professor who works in your major’s department.
Step 3: Find Professional Employment and Join a Professional Organization
Unlike many other professions, stock brokers and traders must first find employment before they can become licensed. If you are not hired by the firm you interned with, you can begin searching for a job immediately after graduating from your undergraduate degree program.
Students and new professionals should both strongly consider joining a professional organization. These are available at the state, national, and international levels and are open to individuals at every career level. Membership benefits will vary significantly from organization to organization, but often include exclusive access to field resources, discounts, training, certification programs, and networking opportunities.
Some of the most prominent professional organizations, associations, and societies for stock brokers and traders include:
- National Association of Stockbrokers (NAS)
- Security Traders Association (STA)
- National Organization of Investment Professionals (NOIP)
- American Association of Individual Investors (AAII)
- International Business Brokers Association (IBBA)
Step 4: Register as a Representative of Your Firm with FINRA and Pass Exams
All states require stock brokers and traders to register as representatives of their firm with the Financial Industry Regulatory Authority (FINRA). To become fully licensed to buy and sell financial products, you must pass a series of exams. Typically, your firm will provide training for the Series 7 and Series 63 exams, which cover securities trading and state laws. After passing and becoming licensed, you must complete computer-based continuing education courses on legal requirements, new financial products, and services.
There are many other licenses available to stock brokers and traders as well. Most will give you the ability to sell different investment products and services. While many additional licenses are not required, earning these certifications can greatly enhance your professional standing. A good example of this is the Chartered Financial Analyst (CFA) certification, which is distributed by the CFA Institute.
Step 5: Complete an Accredited Master's Degree
While not required, many stock brokers and traders ultimately choose to pursue a graduate degree. A master of business administration (MBA) is greatly preferred by employers and is often a requirement for high-level positions in the finance industry. An MBA frequently entitles professionals to more advancement opportunities, better compensation, and large signing bonuses when hired.
Finance MBA programs are designed to provide students with a deeper understanding of business, finance, and management topics. They generally consist of 30 credit hours of coursework and can be completed in two years by students who are enrolled fulltime. Some MBA programs allow students to graduate in as little as a single year.
Coursework typically covers the following:
- Management Accounting
- Taxation for Business and Investment Planning
- Data Management and Analytics
- Current Issues in Accounting
- Predictive Analytics
Choosing an MBA program that is properly accredited should be a priority. Attending an unaccredited college or university may make it difficult to transfer credits, apply for higher education, and find suitable employment. Give preference to institutions accredited by the Association to Advance Collegiate Schools of Business (AACSB). Opting for a degree program that is accredited by a regional association may be sufficient if you plan to work locally.
Stock Broker Career & Salary
According to the Bureau of Labor and Statistics, the median annual wage for most securities, commodities, and financial services sales agents in 2023 was $76,900. This figure is well above the median annual wage of $48,060 reported for all occupations. Entry-level stock brokers and traders can expect to make around $50,000 annually, while those with more years of experience or who are exceptionally skilled can earn as much as $200,000+ a year. Salary is also impacted by location; the top paying states for this occupation include New York, Connecticut, Virginia, Alaska, and New Jersey.
Where Might You Work?
In addition to managing individual investment accounts, stock brokers and traders often work for large corporate entities. Because almost every company and organization requires some level of financial investment advice, these professionals can find work in a variety of industries.
That said, the industries that hire stock brokers and traders most often are:
- Securities, Commodity Contracts, and Financial Investments
- Credit Intermediation
- Non-depository Credit Intermediation
- Company and Enterprise Management
- Agencies and Brokerages
- Insurance and Employee Benefits
- Pipeline Transportation of Crude Oil
- Computer Systems Design
- Farm Product Raw Material Merchant Wholesalers
- Professional and Commercial Equipment and Supplies Merchant Wholesalers
While most stock traders and brokers work in securities, commodity contracts, financial investments, and credit intermediation, the highest paying industry in the field is pipeline transportation of crude oil. Stock brokers and traders may also choose to work for themselves.
It is important to note that many stock brokers and traders work and live in New York City. This is, in large part, due to the fact that most major investment banks and the New York Stock Exchange (NYSE) are located there. In general, these professionals tend to find employment in more metropolitan areas.